The global FinTech industry is on a parabolic rise

Fintech combines finance with advanced technology and has enabled usto enjoy virtually frictionless financial services with only a few finger strokes. The industry has grown at a dizzying pace in recent years, and according to an article published in Forbes magazine in 2021, fintech investments have reached $91.5 billion – twice as much as in 2020.

Moreover, in the third quarter of 2021, 42 Fintech companies reached Unicorn status – that is, their estimated value exceeded $1 billion – even before their IPO. If we review the entire year, about 200 fintech companies have become such – a figure that indicates the strength of the market and the size of the potential.

The team leading FINQ

FINQ was founded by Eldad Tamir, one of the founders of the prestige investment house – “Tamir Fishman”. Eldad serves as a managing partner in the group’s venture capital funds, and has been involved as an investor in financing many of the leading technology companies in Israel, including: CHROMATIS, ALLOT, MODEM ART, CHECKPOINT, NICE, MSYSTEMS, COPRRGATE, GALILEO, TECHNOMATICS, VOLTAIRE, RADWARE.

The company’s CEO is Maya Rapaport, who specializes in the worlds of marketing, product and strategy and has previously held senior positions at PEPPER Digital Bank as well as Bank Leumi, Cellcom, hola, Switch and Bezeq International.

The need that FINQ answers

The world of finance is considered one of the last to undergo a complete digital transformation because of the tough regulation and compliance in the industry. Therefore, many still rely on the services of agents who mediate between the customer and the product and are not fully exposed to all the options available to them.

For the first time, FINQ is creating, an easily accessible and comprehensive marketplace for financial, pension and insurance products from around the world, all while complying with the strict regulatory conditions and in close cooperation with the Securities Authority. The solution allows each user to adjust their investment, insurance and pension offers that best suit them, based on their personal profile, without bias, and free of charge.

FINQ – Current Growth Stage

FINQ’s system already has a portfolio including thousands of financial products on a platform that connects institutions and potential customers. The system is currently being piloted, which includes building a personal profile for each customer and adapting the products to their needs.

The company expects that during the first quarter of 2022 the system will already be launched to the public and will allow a comparison between thousands of financial instruments including the analysis and dissolution of information on each of them. The company emphasizes that collaborations with banks and fund managers do not hinder the release of the product and their use by the public.

Compliance with all regulatory requirements

The technology was reviewed and tested by experts from the Innovation Authority, and FINQ was recognized as a technology company that drives innovation in its field. Thanks to FINQ, the Securities Authority has laid the groundwork for building fully digital investment products that are designed for industry 2.0 of portfolio management. The new regulation will enable digital investment management without the need for the advisory system of the various banks and will allow complete control and freedom for the customer.

Technology and patents

FINQs underlying technology is based on artificial intelligence and behavioral economics and will be protected by a patent that was filed for approval in the United States in August 2019.

The technological core of the system is based on AI algorithms and consists of three engines: a motor for creating a personal financial fingerprint for the user, a genetic mathematical profile motor for the financial products and a matching engine, whose job is to create a personalized recommendation between the user’s own financial fingerprint (AFI) and the genetic profile (FIB).

Competitors

FINQ operates in a blue ocean and brings for the first time a transparent and open marketplace model to the world of finance – designed for end users. There are other fintech companies that offer their customers a vaguely similar service, but they only show their products or other products for non-objective reasons.

The business model

FINQ’s business model is based on receiving commissions from all the financial product providers presented in the system. Therefore, it has the ability to provide a personal, objective, technologically complete and cost-free consulting service.

The market

Thanks to its ease of use and the ability to get an objective overview of the market and the most suitable products for everyone, the company caters to a very wide range of target audiences, from young people just starting their careers and need to route their pension money, to sophisticated investors interested in comparing financial investment alternatives.

The Israeli market will be the beta site to test the product, and the main markets that FINQ is targeting are Europe, the UK, and the US.