Fintech is a popular contemporary buzzword and many of its products touch our lives every day. A fintech simply refers to a company that operates in the financial services sector and leverages the power of technology to simplify, automate, and improve the delivery of financial services to end customers.
Further, they can be classified into various sub-sectors including payments, investment management, crowdfunding, lending and borrowing, insurance, cross border remittances, and so on based on the specific segment that they are trying to service.
Looking at the the valuation frenzy around FinTech startups globally, some key questions need to be addressed:
Why are some of these companies valued so highly, even higher than existing brick and mortar banks, asset management companies, or insurance companies which have been in existence for decades?
What makes these startups reach such high valuations in such a short span of time? Are these valuations real or imaginary?
Is there an underlying logic or are these just based on sentiment and market hype?
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