FinTech brings investment to the public at large

There are aspects of the financial sector that a few years ago were reserved for a small group of people. Or, at least, it was difficult for the general public to have access to them in a natural way. Partly because of the complexity at the operational level, partly because they were aspects of the economy that were distant to a large part of society. The truth is that technological advances are largely behind a paradigm shift in this respect. How did this happen?

It is less than a decade since the so-called FinTech, a term that arises from merging the concepts of "Finance" and "Technology", began to take their place in this sector. Born at the dawn of the new possibilities offered by technical improvements and a spirit of bringing added value to finance through innovation, these companies and their services were very well received by society, since, by simplifying and improving many of the processes, they could offer various options in a more efficient, convenient and, on many occasions, more economical way.   

What options are we referring to? Well, FinTech companies have covered a large part of the needs of the financial world, such as electronic banking, wealth management, financial advice and, of course, investments. These new companies have designed accessible and intuitive environments, with constant and updated information in order to bring this world to the general public, something that was more complex with the traditional methodology of entities such as banks or stockbrokers. On the other hand, the widespread use of technology in today's society has also opened the doors to FinTech for many users who might initially have been reluctant to take this step.

In order to reach as many people as possible, many of whom have no previous experience in the investment world, the FinTech environment includes various tools to familiarise them with these operations. The company NAGA, with more than one million clients in more than 100 countries, wanted to incorporate a training section for those people who have recently joined the investment world or who want to improve or update their knowledge. In addition, it includes a version to operate without real money and to be able to try trading. Another great option offered by NAGA for less experienced investors is Copy Trading, where you can copy the operations of other traders with more experience and success to get started in this world with experienced users. 

This German company offers various assets divided into different categories, such as Forex, Indices, Commodities, CFDs... In addition to being considered one of the best crypto trading platforms and being innovative with respect to its conception as a social investment platform, i.e.to facilitate contact between users of the application to share opinions, advice or experiences they have had in the world of trading. In short, a use of technology that exemplifies very well the disruptive nature of FinTech, which seek to adapt to the new needs of today's society and make contributions that are ahead of the conventional. This spirit is part of the success and consolidation of these companies, which have redefined the type of relationship between institutions and customers.

The growth of FinTech can be better understood with some figures. For example, if in 2020 their global valuation was around $7 trillion, by the middle of this decade their growth is estimated to be around or above $31 trillion. It is also one of the sectors with the highest demand for new qualified professionals. A prominent role in these variables is played by those FinTechs that are related to investment, one of the areas that has grown the most with its arrival and consolidation in the last 8-10 years. Thus, the world of investment has seen a notable transformation since FinTechs have entered society; their reception has been very positive, largely due to the ease of integration into these new environments and the convenience of their use, something that has led to an increase in the number of users already operating today.