In this era, disruptive #technology and innovation cannot be ignored and the financial services industry is rapidly evolving based on these innovations. Nutmeg, five-year-old #FinTech startup, was established to link this disruptive innovation with financial services.
The time has come where efficient management of wealth requires disruptive innovation. Nick Hungerford, CEO of Nutmeg pointed out that “For 300 years rich people have had two choices: give your money to someone else to manage; or do it yourself. Suddenly this wave of companies has come along and said there is a third way.” The third way, according to Nick, is incorporating #digital technologies into financial services.
A research carried out by Accenture has indicated that 83 percent of high-net-worth investors are now using digital technology for their financial services transactions.
Nutmeg has raised a little less than $40 million over the past five years, from different investors including Schroders and Balderton Capital. This happened despite being rejected 50 times before securing its first deal. Nick got the idea for Nutmeg in 2010 while he was an MBA student. He joined a group of business scholars, who are introducing disruptive innovation such as Tradable, TransferGo, and Squirrel to financial services.
The opportunity for FinTech startups has been created by the increasing demand for digital financial services. According to British Bankers’ Association, consumers will use mobile payment methods to manage their accounts 2.3 billion times more than a combination of telephone, internet and branch banking by 2020. This has made mobile payment systems a must-have for companies that aim to succeed and remain competitive in the market.
With the current democratization of financial services, firms need to overcome technological barriers by evolving their financial IT systems. A research carried out by Accenture has indicated that 83 percent of high-net-worth investors are now using digital technology for their financial services transactions.
One of the biggest challenges that FinTech companies face is convincing people who are in wealth management that their money can be safely, efficiently and transparently managed online. But no matter how long this will take, integrating innovations in financial services is fast becoming a necessity and companies such as Nutmeg are committed ensuring that these innovations make tangible impacts on people’s businesses and lives.