By 2025, the global financial market will exceed $300 billion, but there are still many myths surrounding this area
Consider that financial companies are unreliable and their audience is exclusively millennials. To think this way means to underestimate the market, and for investors to deprive themselves of impressive profits, believes the author of Forbes Russia, managing partner of UFG Wealth Management Oksana Kuchura.Financial and political crises of recent decades have completely changed the face of the banking industry. Regulators require banks to combat money-laundering, tax evasion and the financing of terrorism.Banks go two ways: hire a huge staff, pass the costs on to customers ascommissions, or simply close the accounts when the slightest question arises. Asa result, clients are forced to collect packets of documents for simple operations: opening an account for payment of utility services or transfers to family members.
The unbelievable growth of neo banks illustrates the depth of consumer frustration with traditional banks.Revolut, one of the largest and probably the most well-known European financial company, started with 200,000 users in 2016, reaching 12 million users this year. In comparison, one of the largest UK banks, RBS, had 19 million customers last year. Revolut began with the easy-to-use concept of a prepaid debit card with cheap multi-currency conversion and evolved over time into an incredibly convenient financial platform with signs of a social network.
There are many myths associated with non-FinTech companies. Such services are often considered unreliable and focused on a narrow audience.
The Millennium Bank. The most popular myth is that Fintech companies only target young audiences who actively use digital services. This is a really important segment for fintech. But to think of it as a toy for millennials is tounder estimate the market.