The Battle for Big Business: FinTech vs Crowdfunding

 

Crowdfunding is, in many ways, considered a modern form of thinking and financing. The truth is that books have been funded this way for hundreds of years and war bonds could be considered a form of crowdfunding, but the creation of the term and the popularity of its technique has really only come into play within the last generation.

The same could be said for FinTech: Computers started being used in the finance world in the 1950s and investing is a very old concept, but FinTech as a term has only started being commonly used in recent years.

Perhaps not surprisingly, crowdfunding and FinTech are heavily interlinked. They run on the same notion: Take out the element of Wall Street (and untouchable corporate heads) and give the power back to the people who really want to make a positive change in modern society. They both eschew paper money for the transferring of funds via technology.

Yet although they are linked, they also have the potential to find themselves in direct competition with each other. Both are new visions for the concept of financing, an alternative to the Big Bank system. Which, then, should garner your attention and your business?

When it comes to the scale of the project and the impact it will have on the world at large, FinTech is the much stronger warrior. In fact, in terms of the way technology is moving, crowdfunding will very soon be nothing more than a subsect of the FinTech Empire. After all, FinTech investments are in the billions and the technology is directly affecting people worldwide.

FinTech is the element that is truly changing the industry and will emerge as the winner in the FinTech-crowdfunding battle for supremacy. Both will retain a place in society, but FinTech will be seen by future generations as “that moment when everything changed.”

 

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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech.‎ We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.