Fortune recently reported that fintech groups from all over the world are banding together to form a world class group of superheroes called the Avengers. Just kidding. These types of superheroes operate on somewhat of a different scale and call themselves Global Federation. Genius, right?
This is really smart because fintech is under increasing global scrutiny with block chain procedures and protocols, the rise of insurtech, AI in the use of robo-advisors and more, the need for startups to have access to a hub of professionals and thought leaders, will in fact allow industry leaders to advance at a much quicker pace.
As if the fintech industry getting its own stock index wasn’t enough – we’ve now got more stability in this arena. According to stock index Innovate Finance, an industry organization aimed to advancing fintech, the federation will be cooperative rather than competitive. This support will essentially allow startups and financial institutions to gain visibility in new target markets.
What’s particularly heartwarming, yet scary at the same time, is the idea of startups utilizing the hub for access to the latest innovations, which creates a greater ability to service a wider audience and grow at an exponential rate.
Enter VCs who are now even hungrier to delve into the fintech ecosystem. But of course, with the doubled growth and increase in investor funding, comes regulatory responsibilities. Regulatory oversight in fintech is already tightening and is a growing concern for larger institutions, so I can only imagine the wave of enforcements headed toward fintech startups. Startups looking to bolster credibility at an uncertain time like this will need to seek out specialists to guide them along the way. Those specialists must be able to understand the regulatory landscape and understand how to comply with stakeholders involved because at the end of the day, safety is everyone’s number one concern.