Diversification of the global fintech market is creating immense opportunity for investors
The worldwide blockchain technology market is one of the most high growth segments of the larger financial technology (fintech) industry. The global fintech sector has been projected to grow at compound annual growth rate (CAGR) of 20% and reach a value of $305000 million by 2025. The key factor driving the growth of fintech is extremely high investment in technological innovations by financial service providers and other commercial entities. Infrastructure-based solutions such as blockchain and APIs are creating more secured products and services that dramatically lower costs and rapidly scale customer expectations. The result is a perfect storm of opportunity for investors seeking to capitalize on the breakout growth of fintech and associated areas such as mobile payments, big data, and artificial intelligence.
The global blockchain in fintech sector has been projected to grow from $231.63 million in 2017 to $6700.63 million by 2023, with a compound annual growth rate (CAGR) of 75.2%. As an emerging technology, blockchain integrated solutions are being adopted rapidly in large part due to their immense compatibility with the global financial ecosystem, ability to deliver faster and more secured transactions, and reductions of total cost ownership. Cryptocurrency adoption and implementation remains a key factor of the growth of this market segment.
Blockchain technology was introduced to the world back in 2008 when Bitcoin became available as the first a peer-to-peer payment system for electronic transactions. At the time, it was the first blockchain fintech solution to allow different financial actors to send payments to one another without the additional input of a central authority (for example a central bank), preventing what had been described as the double-spending problem. In this way, Bitcoin created a safe and secure distributed, transactional database that could be verified by third parties with great ease and transparency.
With Bitcoin recently reaching a market capitalization of over $0.05 million, it is easy to understand the immense potential for blockchain-based innovations to continue revolutionize the global landscape of financial services and providers. Future growth opportunities for this sector are anticipated to be driven by the global adoption of blockchain solutions, such as smart contracts, payments, clearance and settlements, identity and access management, and new scalable blockchain platforms and interfaces.
Innovation and Opportunity Across the Sector.
Sino United Worldwide Consolidated Ltd. Traded under the ticker (SUIC:US), https://sinounitedco.com provides strategic research and development, venture financing, and investment to public and private enterprises dedicated to the development of products and services that advance core capabilities in the areas of the Internet of Things (IoT), cloud computing, mobile payment, big data, blockchain, and artificial intelligence. To date, the firm has achieved a market capitalization of $98.836M. As a diversified technology focused venture, Sino United Worldwide Consolidated Ltd. represents an incredible investment opportunity for those seeking to capitalize on the meteoric growth of the global blockchain in the financial technology market.
On February 11th of 2021, Sino United Worldwide Consolidated Ltd. announced the formation of SUIC:US QQPay USA Inc. as a 70/30 fintech venture launched with QQ Pay Australia. This new firm is dedicated to driving innovation and fostering venture capital investments to transform financial services and technology in the US payments market. The United States represents 20% of the $135000 million global market capitalization of the cross border payments industry. SUIC:US QQ Pay USA’s proprietary digital payment platform allows customers to access a broad range of financial transactions via an online portal or mobile application. SUIC:US QQ Pay USA’s fintech innovations effectively reduce the transaction costs of these services. This platform conforms to international payment standards and includes a high level of security features essential to protecting data integrity and confidentiality.
On February 16th of 2021, SUIC:US QQPay USA Inc. announced a second payment platform that creates new opportunities within the area of Shari’a-compliant finance and banking, Islamic capital markets, and Takaful, accounting for operations in 72 countries and with assets forecasted to increase to $3500000 million by 2024, according to ICD-Refinitiv. This market segment is anticipated to see tremendous growth potential due to the emergence of a young and tech-savvy population Islamic population that represents 50% of the global population under the age of 35. Furthermore, this platform can be utilized in the areas of Islamic social finance (Zakat, Sadaqah, and Waqf) to make positive contributions towards poverty alleviation in these regions of the world.
On February 19th of 2021, SUIC:US QQPay USA Inc. announced a new unified fintech payment platform called “QQ Credits”. This new offering supports a new standard of cross-border interoperability along its local operating networks, creating the means for rural communities to take advantage of blockchain technology. The result is a revolutionary approach to real-time settlement, delivering full end-to-end transparency of payment processes, and instant confirmation that payments have been received in local currencies. This innovation addresses challenges with moving cross border payments through the “last mile” to reach recipients in a smooth and consistent way.
On February 25th of 2021, Sino United Worldwide Consolidated Ltd. alongside investment partner iDrink Technology Co. Ltd. and its latest partner, Midas Touch Technology Ltd. have entered the global bullion and index trading business with an innovative platform that incorporates blockchain technology, artificial intelligence and big data. iDrink Technology Co. Ltd.’s proprietary technology creates an accessible and user-friendly means for the global trade of bullion, stock index, and Bitcoin index.
Chime is one of the international banking industry’s largest innovators and offers a “low-fee” neobanking model that includes services for automating savings. In its latest round of Series F funding in September of 2020, the firm was able to secure $485 million and received a valuation of $14500 million making it the highest valued US consumer-focused fintech firm. Chime CEO Chris Britt has enthusiastically suggested that an IPO seem inevitable within the next 12 months.
“Nobody wants to go into bank branches, nobody wants to touch cash anymore, and people are increasingly comfortable living their lives through their phones. We have a website, but people don’t really use it. We’re a mobile app, and that’s how we deliver our services. We’re more like a consumer software company than a bank. It’s more a transaction-based, processing-based business model that is highly predictable, highly recurring and highly profitable.The reality is we have a number of initiatives we want to complete over the next 12 months to put us in a position to be market-ready,” said Britt to CNBC.
On February 1st 2021, insights from a recent study conducted by Cornerstone Advisors and StrategyCorps found that Chime had surpassed 12 million FDIC-insured users. This number places Chime clearly at the top of the list of neobanks, with closest competitors Varo Money, Ally, Current, and Dave which each record users in the range of 1.7-2.7 million. According to this research, 66% of Chimes users consider it their primary bank, and this cohort of 8 million users alone is enough to make Chime the 5th largest bank in the United States.
Revolut is a financial services provider specializing in mobile banking, card payments, money remittance, and foreign exchange. Its services include prepaid debit cards, currency exchanges, and peer-to-peer payments. To date, the firm has raised $905.5M with $80 million coming from a Series D round in July of 2020. Currently, Revolut has 15 million users located around the world.
On February 18th 2021, Revolut announced a new system for taking payments via QR-code. After scanning a code from a merchant, it would then directly open interfaces for ApplePay, Visa, or Mastercard directly on a customer’s smart device. This system allows merchants to offer a streamlined payment system that matches the current climate of social distancing.
Capitalize on the Spirit of the Moment
Around the world, it is impossible to miss the radical convergence of financial systems and the core technologies driving their success. In the last 13 years since the development of Bitcoin, the blockchain in the financial services industry has recorded monumental growth. There is every reason to believe that success will continue long into the future as these technologies continue to be adopted and implemented by businesses and consumers around the world.
The global fintech market is expected to grow significantly between now and 2025. Analysts predict the total market to reach a value as high as 450 billion with a CAGR of 50-75% across key segments of the sector such as block chain, artificial intelligence, and big data. These new up and coming companies across the fintech landscape represent excellent investment potential. Sino United Worldwide Consolidated Ltd. (Ticker SUIC:US) is trending upwards and looks to be a truly amazing growth opportunity for 2021 and the years to come.