American Fintech start-up threatening financial company…Market price to reach USD 130 billion
Lee Mi Jeong | lmj0919@ | 2018-01-31 11:11:22
Last year, the market value of listed companies in the United States began to rise to about 130 billion dollars, threatening the existing financial companies.
According to a report released by the Hana Financial & Economic Research Institute on January 30, the market for pin-tecs in the United States last year reached USD 130 billion in market capitalization of the top 10 listed companies. In addition, the market capitalization of 12 unlisted FinTech companies is growing rapidly, reaching USD 35 billion.
PayPal is the online payment service, and Stripe is the settlement service platform startup among the listed companies.
PayPal`s market cap has surpassed American Express Bank (Amex), and Robinhood subscription account has surpassed the online securities trade (E * Trade) in three years.
Especially, Robinhood is an online stock brokerage firm that has grown rapidly by introducing stock transaction fee exemption services and is now a giant company with a market capitalization of USD 1.3 billion.
TechCrunch recently compared the US fin tech index, which is based on the market cap of the top 10 listed companies in the US, to the trends of the top 10 financial institutions and S & P 500, from November 2016 to November 2017 For the first ten months of the year, the market cap of the top ten FinTech companies rose 89%, while the top 10 financial firms saw a 29% share and the S & P 500 remained at 20%.
During the year, the difference between the FinTech index and the top 10 financial institutions was around -4% to 60%, and the FinTech yield was close to 100% during the period.
While FinTech start-ups will continue to grow rapidly, existing financial companies are expected to take a brisk business due to the crisis.
Especially, the growth of FinTech is at the beginning stage, and it is expected that the dominance of financial services will be strengthened from payment settlement to lending and investment over the next 10 years.
Meanwhile, the prospects are not bright as existing financial institutions do not seek new growth engines due to a weak back-end system and various scandals. The traditional customer service approach and labor-intensive processes have resulted in a decline in the efficiency of the company, and it has been a huge blow to customers` creditworthiness with Wells Fargo`s ghost account ripple and Equifax hacking.
Actual Tech Crunch warned that the current market cap growth in the next 10 years may be below the S & P 500 in the case of existing financial institutions stick to their current mode of operation.
Not only in the US but also in the domestic financial market, it is pointed out that it is necessary to strengthen monitoring and look for active cooperation and investment opportunities with Fin Tech companies.
Lee Hwa-jung, a researcher at Hana Financial & Economic Research Institute, said, "Considering that existing financial companies cannot keep pace with the pin-tech trend, they will need to be closely monitored." It is necessary to seek cooperation and investment opportunities with FinTech companies according to trends along with the effort to do so. "
By Lee Mi Jeong lmj0919@
[ copyright ⓒ The Digitaltimes ]
According to a report released by the Hana Financial & Economic Research Institute on January 30, the market for pin-tecs in the United States last year reached USD 130 billion in market capitalization of the top 10 listed companies. In addition, the market capitalization of 12 unlisted FinTech companies is growing rapidly, reaching USD 35 billion.
PayPal is the online payment service, and Stripe is the settlement service platform startup among the listed companies.
PayPal`s market cap has surpassed American Express Bank (Amex), and Robinhood subscription account has surpassed the online securities trade (E * Trade) in three years.
Especially, Robinhood is an online stock brokerage firm that has grown rapidly by introducing stock transaction fee exemption services and is now a giant company with a market capitalization of USD 1.3 billion.
TechCrunch recently compared the US fin tech index, which is based on the market cap of the top 10 listed companies in the US, to the trends of the top 10 financial institutions and S & P 500, from November 2016 to November 2017 For the first ten months of the year, the market cap of the top ten FinTech companies rose 89%, while the top 10 financial firms saw a 29% share and the S & P 500 remained at 20%.
During the year, the difference between the FinTech index and the top 10 financial institutions was around -4% to 60%, and the FinTech yield was close to 100% during the period.
While FinTech start-ups will continue to grow rapidly, existing financial companies are expected to take a brisk business due to the crisis.
Especially, the growth of FinTech is at the beginning stage, and it is expected that the dominance of financial services will be strengthened from payment settlement to lending and investment over the next 10 years.
Meanwhile, the prospects are not bright as existing financial institutions do not seek new growth engines due to a weak back-end system and various scandals. The traditional customer service approach and labor-intensive processes have resulted in a decline in the efficiency of the company, and it has been a huge blow to customers` creditworthiness with Wells Fargo`s ghost account ripple and Equifax hacking.
Actual Tech Crunch warned that the current market cap growth in the next 10 years may be below the S & P 500 in the case of existing financial institutions stick to their current mode of operation.
Not only in the US but also in the domestic financial market, it is pointed out that it is necessary to strengthen monitoring and look for active cooperation and investment opportunities with Fin Tech companies.
Lee Hwa-jung, a researcher at Hana Financial & Economic Research Institute, said, "Considering that existing financial companies cannot keep pace with the pin-tech trend, they will need to be closely monitored." It is necessary to seek cooperation and investment opportunities with FinTech companies according to trends along with the effort to do so. "
By Lee Mi Jeong lmj0919@