In other parts of the globe, financial startups are finding opportunities, especially with the rising use of the smartphone in emerging markets (EM). This should put financial technology-focused exchange-traded funds (ETFs) on the radars of prospective ETF investors.
For example, one startup is looking to challenge the big banks in the country of Nigeria, per a report by TechCrunch.
“Fintech startup FairMoney is building a challenger bank in Nigeria,” the report noted. “The company first started offering microcredit and now plans to expand to current accounts and savings. FairMoney just raised an $11 million Series A round (€10 million) led by Flourish, DST Global partners and existing partners Newfund, Speedinvest and Le Studio VC.”
FairMoney provides a mobile app that gives users the ability to obtain a loan directly from their smart device. It’s underwriting feature allows a user to answer some questions by using the financial data obtained, the startup can deliver a credit extension decision in a matter of minutes.
“Like many challenger banks, FairMoney wants to become a financial hub for all your banking needs — one app to rule them all,” the report noted. “That’s why the ability to hold money in your FairMoney wallet will be key. For users without smartphones, the startup is also working on an SMS interface to transfer money.”
With fintech startups entering the global market space and challenging banks at their own lending game, this could fuel more interest in fintech ETFs.