It is evident the fintech industry is a vital part of the future of finance. Just how big of a role this industry will play, remains to be seen. According to Goldman Sachs, fintech has the potential to become as “valuable as trading itself”. That is quite a nod of confidence from an unexpected ally. Especially consumer loans are of great interest to the institution right now. This is exactly where most financial technology startups are focusing their attention right now.
The future of finance will look very different from what we know today. Consumers have different demands compared to just a few years ago. There is a growing need for personalized services rather than the standard package. Banks and other financial institutions have to come up with solutions in this regard. They can’t do this alone, though, and often seek the help of startups. Goldman Sachs is one of the companies with high hopes for fintech startups right now.
Fintech is Vital to Goldman Sachs
More specifically, they keep close tabs on the online consumer loans market. With so many startups targeting this industry, innovation will occur eventually. When that happens.Goldman Sachs will be there to make the necessary acquisitions if needed. This industry can, according to a spokesperson, generate over $1bn in extra revenue over the next three years. That is nearly the same amount the company will generate through trading operations. It is quite interesting to see fintech valued so highly by one of the financial giants.
What is even more interesting is how Goldman Sachs has no business in consumer lending right now. Then again, new rules force companies to explore other markets. Moreover, there are tight restrictions on trading as well. With the incentives for lending in place, exploring these opportunities makes a lot of sense. This can only be done through embracing fintech, that much is certain.
Considering how Goldman Sachs invests in many startups, they are in a prime position to make an impact. Whether or not that will happen, remains to be seen. Fintech is an underestimated and underappreciated industry. That will not be the case for much longer, though. Fintech is highly regarded by this institution, that much is evident. It will be interesting to see how this market evolves. Online consumer lending is a critical industry, that much is certain.
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