Fintech: Unlocking new opportunities for wealth creation and preservation

Fintech continues to drive disruptive business models in financial services. While much attention is given to the efficiencies and cost-savings, we often overlook the enormous number of opportunities that financial technology unlocks for consumers by empowering it to be more in control of its finances. A great example of this is wealth management, an industry regarded until not so long ago as only accessible to the wealthiest segment of society. Digital brokers and robo-advisors have even out the playing field, opening a myriad of opportunities for everyone to trade all sorts of asset classes for free, or for very low fees, as well as get entire portfolios managed for as low as a couple basis points per year.

We could continue listing more examples; however, our main point here is that Fintech is an enabler of financial inclusion and, by removing the barriers that exclude people from participating in the financial sector, it is improving the lives of millions of people around the globe. Moreover, this should come as great news as we are in the midst of the largest inter-generational wealth transfer in history, as the Baby Boomer’s pass down their assets to the next generation in the form of inheritance. Over the next 25 years, roughly $68 trillion are expected to change hands, with much of that money ending up in accounts belonging to members of the Gen X, Millennials and, even, Gen Z.

Younger generations need to be better prepared to continue building wealth and, most importantly, preserving it over time. Fintech is therefore a much-needed boost that gives superpowers to consumers to really take ownership over this challenge. However, a word of caution is that we need to build an understanding that the financial inclusion journey does not end at financial access. Rather, until people are actively using and leveraging the tools at their disposal to improve their financial situation, and thus creating a true shared prosperity for society. Here is where financial literacy is much needed, as there is no point in having the best harpoon if we don’t know how to fish.

At Chingona Ventures, we have a firm commitment to invest in companies that are massively transforming its industries, and that have an important role in bridging gaps that improve the overall well-being of society. Fintech has been a very important vertical for us due to its impact in unlocking opportunities, like in the case of wealth management, that empower consumers to make smarter decisions. After all, a society with better financial inclusion (i.e., literacy & access) is the key to building more prosperity.

The companies listed below are relevant examples of Chingona Ventures’ investments that are driving change in the Fintech space and, particularly, in the future of wealth creation and preservation. We are very proud to have partnered together in this journey and look forward to continuing to grow with them and unleashing their potential to their fullest.

Early Bird — Helping parents, family, and friends to collectively invest in a child’s financial future.

Suma — The leading financial technology company devoted to increasing prosperity, opportunity, and financial inclusion for young U.S. Latinos by making financial inclusion fun, accessible, and simple.

Scout — A mobile-first personal finance and investing platform that partners with influencers and thought leaders to create engaging business and finance content for Gen Z and Millennial student athletes.

If you are a founder looking to build something innovative in the fintech space, feel free to submit your company here. We love companies that are looking at unique ways to engage customers, and that have a special value-add that works to further enhance the lives of their customers and our world. You can also look into this link to learn more of what we look for to find the next generation of badass founders.