* Report highlights resilience and growth for the Fintech industry

2022 has been a challenging year for technology investors, given that fears of inflation are creating volatility in the sector. But for the long-term growth horizon, financial technology, or simply fintech, is still a solid effort.

Fintech was one of the hot sectors in the midst of the height of the pandemic, but it has fallen apart since then. With inflation bringing down the technology sector as a whole, fintech was also pulled down, but a recent study showed that despite its recent weakness, fintech has shown resilience in the last couple of years.

The global COVID-19 Fintech Impact and Resilience Study, published by the Cambridge Center for Alternative Finance (CCAF), the World Bank Group and the World Economic Forum, has concluded that the fintech industry was more resilient to the pandemic than previously reported in a previous report from December 2020, “noted a Finextra article.

While stock market indices may fall, innovation continues. This is exactly what fintech companies are achieving as disruptive technology continues to take over the financial sector, changing the way companies and individuals process financial transactions.

«Fintech companies are transforming the financial sector by innovating, introducing more competition and expanding access to financial services; The survey indicated that fintech companies have served women, SMEs and low-income households – people who have traditionally faced challenges in accessing financial services, the article states.

Get Fintech exposure for growth

With the growth potential of the fintech industry, it opens up opportunities for exchange traded funds (ETFs) that focus directly on this technology sub-sector. As such, a fund is worth considering Global X FinTech ETF (FINX).

FINX seeks to provide investment results equivalent to the Indxx Global Fintech Thematic Index. The index is designed to provide exposure to listed companies in emerging markets that offer financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analysis software and alternative currencies, as defined by the index provider.

The fund exposes investors to:

• High growth potential: FINX gives investors access to high growth potential through companies that use technological innovations to disrupt and improve the delivery of financial services.
• An unlimited approach: The composition of the fund exceeds classic sectoral, industrial and geographical classifications by tracking an emerging theme.
• ETF efficiency: In a single trade, FINX offers access to dozens of companies with high exposure to the fintech theme.

Overall, FINX offers exposure to a technology area that should continue to see more investor interest.

For more news, information and strategy, visit the Thematic Investing Channel.