Projections for Fintech in 2021

The world faced profound challenges during 2020’s roller coaster ride. Fortunately for our industry, Fintech’s emphasis on digital infrastructure left it well positioned for a stay-at-home world. Bored during lockdowns, many consumers took the opportunity to contemplate their financial plans and learn about new investing technologies. The trend toward a more digital and more democratic investing world dramatically accelerated in 2020, and I expect that to continue this year.

The Near Future of Investing 

Modern Investing Portfolio: The world’s top institutional and ultra high net worth investors utilize alternatives, which have previously only been available to them. It is time for retail investors to rethink their 60/40 portfolio and modernize it. I believe access to investments beyond stocks and bonds will become increasingly important in 2021. Traditional assets proved resilient during the pandemic. However, low interest rates and expensive stock valuations make the path forward more challenging. Alternatives are going mainstream. Companies like Yieldstreet, RallyRoad and Fundrise should continue to accelerate alternatives adoption as investors seek new ways to diversify.

Digital currency and blockchain:  Their importance will only increase. Bitcoin’s price reached an all time high in early January this year. A global, years-long trend toward mistrust in social institutions — in economic policy, political contests, and especially public health amid the pandemic — should provide a tailwind for digital currencies, because in many ways they exist outside these institutions. While we don’t know the timing of reemergence from the pandemic, the digital infrastructure built around blockchain technology will likely become increasingly critical as economies and supply chains reconfigure following last year’s recession. 

Finance After the Pandemic

COVID-19 was the top story of 2020, shutting down the global economy. A vaccine is a good sign we’ll return to normal, but the pandemic has accelerated a few trends that were already underway in finance and banking. Those trends should continue this year.

Open Banking Adoption: Fintech has supported the digitization of the finance and banking experience, making socially distant transactions easier. Challenger banks or neobanks such as Chime, Revoult and Moneylion are expected to continue to benefit from a decreased emphasis on brick-and-mortar, in-person banking. COVID has revealed to many consumers that face-to-face isn’t the most critical aspect when it comes to managing a pocketbook.

Advice will also go digital. Information flow has expanded tremendously in the consumer space and this trend will likely spill over to the saving and investing space as well. Consumers can now access investment advice digitally but the key difference may be the adoption of even non-traditional sources from finance sites and blogs such as Seeking Alpha and Reddit. It’s likely that investment firms also look to heighten their influence in the digital advice game by offering allocation and investment analysis advice. 

Bright Spots on the Road Ahead

I believe fintech will trend stronger in 2021. A lot of fundraising in 2020 will provide “dry powder” capital to fund new innovations this year. Meanwhile, the IPO and SPAC markets could bring a host of fintech companies public — companies like Affirm, Robinhood, Better, SoFi, Marquette. This should help increase transparency and visibility for the industry.

More consumers become investors: Looking for silver linings after a historically difficult year, the overwhelming positive from 2020 is that consumers became investors. Apps like Robinhood, Stash and Yieldstreet made it easy for everyday people to learn about and participate in investment markets. Lockdowns, while painful, gave people more time at home to review their financial positions and begin exploring investing in stocks, funds and alternatives. This is critical in the effort to close the income and opportunity gap. 

Self Driving Money: My “hot take” about the future centers on a potential pivot point within the financial industry: Technology is increasingly facilitating “self driving money” and futuristic wallets. Meanwhile, the financial industry is still dominated by one-on-one, personal relationships — “handshakes” are still in many ways the coin of the realm. Think about how self-driving cars could upend the auto and transportation industry. In finance, software may similarly reduce barriers and frictions for investors. A lot of companies are going to have to reckon with a new reality where relatively inexpensive apps and technology start to take the place of traditional banking, advice, and asset allocation.

How helpful is this content?

Share this article:

Sign up for Yieldstreet in 3 easy steps

Sign up with your email address

Securely verify your identity and link a bank account

Verify your accreditation (if applicable) to access all of Yieldstreet’s offerings.

The Yield

Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.

Since inception, over $1.8B has been invested on Yieldstreet

Join today for free to access alternative investment opportunities.

1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.

4 Reflects the initial quarterly distribution declared by the board of directors on February 6, 2020, which will be payable to stockholders of record as of June 10, 2020, and the initial offering price of $10 per share.

5 The Fund will cease investing and seek to liquidate the Fund's remaining portfolio no later than 48 months after the Fund's initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund's portfolio.

6 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

7 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including Sept 6th, 2021, after deduction of management fees and all other expenses charged to investments.

8 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.

300 Park Avenue 15th Floor, New York, NY 10022

844-943-5378

No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.

Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.

Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.

Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.

Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.

Banking services are provided by Evolve Bank & Trust, Member FDIC.

Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.

Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.

Read full disclosure
Copyright © 2021 YieldStreet, Inc.