SPACs, Banking, and the Future of Fintech

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

For anyone who thinks that the world of banking seems like it hasn’t changed very much recently, get ready for some exciting revelations. A significant majority of banking customers are now regularly using online and mobile banking. As of March 2016, the number was 71% according to the United States Federal Reserve Consumers and Mobile Financial Services report. Overall use and transactions over digital banking might continue to grow at such a pace as more people become used to banking primarily in an online ecosystem. 

On the business and investing side of the industry, SPACs (special purpose acquisition company) are heating up the market for proven and innovative banking companies. Where consumers are gravitating towards has been shifting toward digital-first for some time and there is now a growing group of innovative fintech and banking companies going public through SPACs. 

Do Brick and Mortar Make a Bank?

When consumers are looking for a bank to use these days, it may not be nearly as much of a consideration to search for a bank with a physical location nearby. Ultimately, eliminating physical location-based costs such as real estate, overhead, utilities, and local staffing might be able to provide banks with financial room to offer better digital-oriented products to their customers.

For people who are looking to learn more about some of the most forward-thinking and innovative banking companies in SPAC environments possible, one place to look is a company like MoneyLion. 

MoneyLion is already a frontrunner in the digital banking industry and has rapidly expanded its operations and offerings for clients by focusing on being a technology company that provides banking and financial services. Having engaged with over 7.5 million consumers already, it has shown that digital-focused banking is not just a niche and has real value for a massive number of people. Ranging from automated investing and early paycheck depositing (RoarMoney), to no interest cash advances up to $250 and credit building app ; MoneyLion has a suite of options that have many components of the latest technology built-in. See MoneyLion's Q1 results here. 

Moving into the future, the finance and banking industries seem to be ripe for ongoing disruption as SPACs and other new ways of building and deploying companies in these industries continue to gain steam. With MoneyLion joining a SPAC, the Fusion Acquisition Corp. FUSE, and other digital-first financial companies like Sofi which joined the SPAC Social Capital Hedosophia Corp V and became Sofi Technologies Inc SOFI, fintech companies and the industry surrounding them have moved toward the latest technology both in their products and their overall operating strategy. Only time will tell what the next breakthrough in the sector will be.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.