According to sources on the market, Tencent recently sought resources cooperation on digital banking. Not long ago, Tencent injected about 200 million US dollars into the Brazilian financial technology unicorn company Nubank with a valuation of 4 billion US dollars, and obtained 5% of the shares. This investment is considered to be a major outbreak on the new wave.
At present, many regions in the world are experiencing the peak of venture capital. For example, in Latin America, although the local PE funds are sufficient, VCs and strategic investors investing in technology finance are few and far between, so large-scale capital injection is mainly through the introduction of foreign investors. In Asia, countries such as Japan, the United Arab Emirates, and Singapore, which are well-funded, are constantly exploring investment opportunities in emerging areas, especially new financial services.
According to a survey by PricewaterhouseCoopers, the new financial services company expects that the future cooperation with traditional financial institutions will mainly provide decision support for the latter’s intelligent business, as well as help the latter’s middle and back office automation, intelligence, and mobile operations. Therefore, the development of science and technology has given tremendous kinetic energy to the financial sector, and has also spawned new financial services.
At the peak of this venture capital, capital institutions from China have drawn great attention. It is reported that Alibaba and Tencent have been constantly observing and preempting resources around the Asian financial technology map. Alibaba’s Alipay Hong Kong (AlipayHK) announced in June this year that it has completed a cross-border transfer service based on blockchain technology with Philippine wallet service company Gcash, and Tencent and KKR have also invested in Indonesia, against Go. -Jek completed the investment, Go-Jek is a local new financial company that provides financial services such as travel payment, loans, and transfers.
What is the market value of the new financial services sector, and each institution has given a different. For example, McKinsey, a world-renowned management consulting firm, predicted that by 2025, the products of new digital enterprises will oppress traditional financial institutions. Low profit, 10-40% of the existing five retail businesses (consumer finance, mortgage loans, SME loans, retail payments and wealth management) will be threatened, and 20% to 60% of profits will disappear, digitized Productivity will create an opportunity for the banking industry to be worth $350 billion.
Last year, British online digital banking startup Atom Bank announced a $100 million financing, with a valuation of approximately $320 million. The lead investors participated in the follow-up of Spain’s BBVA, Toscafund Asset Management and Woodford Investment Management. Atom Bank plans to use this round of financing to expand its customer base and service categories and provide financial support for the loan business. Atom Bank is currently expanding the coverage of young users, and its app also adds DIY elements to adapt to young people’s personalized financial services. demand.
Earlier this year, Revolut, a digital bank in London, also received a large investment from venture capitalists. Revolut is a financial technology startup from London that provides digital banking accounts and a variety of other financial services, similar to Qonto, the digital bank in Paris, and N26 in Germany, also received large-scale investment amounts. Such investment shows that investors are now valued by subverting the new financial services of the banking industry, and may also indicate that digital banking will become the mainstream of the future.
In the near future, an online digital banking company focused on young people has attracted the attention of global venture capitalists. The company is called CoinBank and is headquartered in Dubai. It is reported that some well-known financial multinational companies have appeared on the list of their investors, some of which are venture capital institutions, and even analyze the company according to the size of the unicorn.
CoinBank official website home page
Through the online information search, we found that CoinBank is positioned to create a new generation of financial brands preferred by young people. Before the external financing, it has already achieved strategic cooperation with more than 20 digital asset exchanges around the world. Not long ago, CoinBank and a number of international financial services providers have also cooperated to become a potential company for unicorns.
CoinBank’s co-founder and chief community officer, Yu Dong, is a post-98 youth. Like all technology changers, he likes to pursue new and interesting things. He believes that “some young people have financial interests, diverse and different stability. Digital assets, very suitable for this type of user population, including cross-border transfer payment services involving travel, is also very novel, we need to find and solve the needs of young people to meet the needs of diversity development
If the bank’s services are all digitized online and combined with the digital currency application model, it may solve many real pain points. Services such as digital banking have multiple systems such as banking, payment, and transactions to solve such problems. Compared with services under pure line, online and offline services will reduce a lot of costs, and it will be much safer and faster.
According to market investors, new financial brands such as Atom Bank, CoinBank, N26, and Revolut are very popular among investors because they have conducted extensive research on local banks and found that they are both bank customers and banks. They all hope that banks can change the overall structure, such as introducing new financial service models, or being able to have new financial services companies to change them, because they believe that these changes will make financial services more convenient and safe. As an investor, you can also get a return that you can expect.
In fact, many traditional financial services organizations also know that new financial services companies will pose threats, especially traditional financial institutions in North America and Europe. However, for now, these institutions are not fast enough to change themselves. In the past few years, banks have blocked some new financial service companies in various ways, hindering their development, but we believe that over time, a new generation of young people has entered the age group that needs financial products, if still Providing them with complex and unexperienced services, when these traditional financial institutions will have no chance, they will be caught off guard by the new financial services institutions, and in fact have already begun, in areas with faster innovation, such as the United Kingdom and Japan. China, etc.
Although the global changes are becoming more intense and there are many unstable factors, the opportunities are enormous. If the new financial services institutions can overcome the above challenges, the wave of standing on the market will also bring long-term positive to the entire financial system.