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Investment in financial technology was a hot topic at Global Conference

June 4, 2015 by · Leave a Comment 

By Phineas Upham

The world of finance is changing, or rather it has to, if the middle class has any chance of survival in the long term. That’s the message that Phin Upham and other leading economists are trying to get across. People within the higher income brackets manage finances in a very different way than those in the lower classes, and banks aren’t able to offer those customers what they need. That’s leaving a sizable chunk of the American public completely ill-serviced by banks and financial institutions.

The solution might be increased investment in FinTech.


Legislation isn’t the problem, interpretation may be. Banks have to keep a certain amount of capital on their balance sheets in order to protect against another financial meltdown. This legislation is well-meaning, but the effects are unintended. Banks became frugal, instead of investing more in individuals and small businesses.

Smaller startups, better equipped to adapt to customer demands and release products quickly, are now playing an important role in the world of FinTech. This isn’t the average digital wallet concept, these applications are handling smaller loans for individuals and helping people stay current with their finances.

Final Thoughts

One of the major takeaways Phin Upham offers is that poor people pay considerably more for the same services used by those who are well off. Without up to the minute access to finances, and the opportunity to grow, the middle class will continue to shrink into obscurity. FinTech needs investment in order to create a sandbox environment, where new ideas can be tested safely and given the chance to grow.

About the Author: Phineas Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Phineas Upham website or Facebook page.