Forms of contact-less payments have been on the rise prior to 2020, but the pandemic only accelerated that trend. Smartphone capabilities that allow users to perform financial transactions via apps can continue to help fuel the Global X FinTech ETF (FINX).
Financial technology, or fintech for short, is opening up opportunities for innovative companies to work around social distancing. One of those ways is via smartphone apps, where the space has risen over 60%, according to the deVere Group, one of the world’s largest independent financial advisory and fintech organizations.
“Pre-coronavirus, we were already in an exciting new era driven by the lightning pace of the digitalization of our everyday lives,” noted James Green, deVere Group’s Divisional Manager of Europe, in an email. “But like so many areas of our lives, the pandemic has accelerated this trend.”
“The jump in usage of fintech apps from existing clients, and a sharp increase in enquiries from potential ones, underscores that people are becoming more tech-savvy than ever,” Green added. “Like never before, people are embracing the convenience of immediate, low-cost access to, use and management of their money.”
A Fintech ETF to Consider
FINX seeks to provide investment results that correspond to the Indxx Global Fintech Thematic Index. The index is designed to provide exposure to exchange-listed companies in developed markets that provide 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:
- High Growth Potential: FINX enables investors to access high growth potential through companies that are 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.
Overall, FINX offers exposure to an area of tech that should continue to see more investor interest.
“We’re seeing seismic and far-reaching shifts in client expectations,” continued Green. “As the world moves towards an ever-more digitalized and globalized future – which is increasingly influenced by those who’ve grown-up with ‘on-the go’ tech – this phenomenon can only be expected to gain momentum.”
For more news and information, visit the Thematic Investing Channel.