Why You Should Invest in FinTech Now

3 min readNov 23, 2020

The evolution of a relationship between technology and financial institutions has changed people’s approach to how they handle money. New tech startups are now offering services that before were only served by banks and other financial institutions.

Such companies are called by the term FinTech. FinTech, or financial technology, is the use of technology applied in the financial sector, e.g. payments, investments, lending, insurance, and essentially any service or product a financial sector covers.

How does FinTech work?

In essence, FinTech solves the failures of traditional financial services and gives customers access to those anywhere, anytime. Digital-first or digital-only approach is the main difference between FinTech and traditional banking or financial business. Some of the most popular and in-demand FinTech solutions are payment services, deposits and lending, insurance, investment management, and capital raising platforms.

Why is 2020/21 the best time to invest in FinTech?

The global pandemic Covid-19 has accelerated the already changing payment habits to using options alternative to cash. That means the use of more FinTech tools more frequently. A recent Crunchbase survey has identified that more than 73% of Americans already perceive FinTech as a new normal. Social distancing is making customers use online and mobile to manage their finances. With this trend, FinTechs gain more advantage in creating value for the current and future environment.

Many FinTechs have developed strong products that are able to tackle the challenge and solve the problems of traditional finance. Given their adaptability and innovation, many FinTechs are well-positioned to not only grow during the crisis but also to contribute to the development of industry and society way after the crisis. Platforms like Crassula are helping businesses to transition to a more digital world: it offers companies to build their own merchant payment gateway or banking solution within days. The Software-as-a-Service model allows businesses to implement any of Crassula solutions into their business model, whether it is the core banking system or embedded FinTech services.

FinTech is rapidly becoming a necessity for consumers. More and more people are looking for technological solutions that meet their needs. Not only from the consumer side though, but traditional banks and financial institutions are also striving for data, which makes them address and collaborate with FinTech platforms. This provides a huge differentiation to the banks’ customer base as they are not anymore geographically limited.

All of these facts provide for the growth of FinTech and its stable future. Leading sectors for investments in FinTech are in payments, insurance, banking, and lending. So far in 2020, $26.5 billion has been invested in FinTech, which is almost one-fifth of all investments worldwide. But of course, when you invest in a business, it is also important to understand where your money will go. In FinTech, the answer to this question differs depending on the business model, e.g. whether the company serves consumers or businesses. B2C FinTechs like, for example, Revolut, mainly spend all of their investments on expanding their user base or covering up their costs. The main difference between B2C and B2B companies is that the former often does not have profit, as opposed to the latter. Therefore, B2B FinTechs like Crassula usually spend their investments on product scaling and developing new profitable services.

Request for Crassula Demo if you want to build a merchant payments system or digital bank via crassula.io or message the commercial team at business@crassula.io




Crassula is a software platform that helps businesses and financial institutions to build their own payment systems, wallets, online, mobile banking and more.