It’s no secret that inflation has been putting a dent in consumers’ bank accounts, but financial technology (fintech) companies are trying to ease the burden by finding ways to offer cost-effective financial transactions.
A Fintech Magazine article noted that fintech companies are doing their part to make the current retail environment easier, such as offering buy now, pay later options or easing the requirements on consumer loans. This can help fintech companies innovate at a time when the broader tech sector is suffering amid higher interest rates.
“In response to the growing cost of living challenges that our customers are facing and to keep up with changing customer demand, we are working with our lenders to scale our product offering significantly,” says Joanne Robinson, Director of Lenders at the UK auto finance fintech Zuto.
“We’re reviewing our products to make sure we have choices, a range of options for customers with different circumstances – including PCP, personal loans, refinancing products, and Hire Purchase options available over a longer term,” Robinson added.
For investors, this means fintech companies can set themselves up for future growth prospects. As such, they can pick up innovative companies at value-oriented prices.
One ETF to Get Fintech Exposure
As a growth opportunity, fintech can provide niche exposure to a sector that should continue expanding exponentially over the coming years. Rather than locate various stocks that can offer this level of growth, exchange-traded funds (ETFs) like the Global X FinTech ETF (FINX ) can provide broad exposure.
FINX seeks to provide investment results corresponding to the Indxx Global Fintech Thematic Index. The index is designed to provide exposure to exchange-listed companies in developed markets that offer financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analytics software, and alternative currencies, as defined by the index provider.
The fund gives investors exposure to the following:
- High Growth Potential: FINX enables investors to access high growth potential through companies applying technological innovations to disrupt and improve the delivery of financial services.
- An Unconstrained Approach: The fund’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, FINX offers access to dozens of companies with high exposure to the fintech theme.
For more news, information, and strategy, visit the Thematic Investing Channel.