By Prateek Swain
Fintech has revolutionized various aspects of the finance industry, such as payments, lending, investing, wealth management, insurance, and more. Fintech also enables cross-border transactions, remote account opening, digital banking, and personal finance management.
One of the emerging trends in fintech is the use of fintech-driven investments to secure a golden visa. A golden visa is an immigration program that grants wealthy individuals a residence permit or citizenship status in a foreign country in exchange for a large investment or the purchase of property.
A golden visa can offer various benefits, such as visa-free travel, tax advantages, access to quality education and healthcare, and security and stability.
The Digital Banking Revolution
The surge of Fintech has revolutionized how individuals manage their personal finances. Figures corroborate that digital banking adoption has grown by 27% globally in the last year alone. Furthermore, Fintech-based personal finance tools have enabled individuals to manage investments seamlessly, empowering them to make informed decisions.
This trend is particularly advantageous for students studying abroad, who can now avail themselves of neobank schemes that facilitate cross-border financial transactions, thereby eliminating the complexities associated with traditional banking systems.
Property Investment
It is one of the most popular and traditional ways of obtaining a golden visa. Many countries offer golden visa programs for investors who buy real estate properties above a certain value.
Some of the advantages of property investment are:
It can generate rental income or capital appreciation over time.
It can provide a tangible asset that can be used or sold in the future.
It can offer diversification and hedge against inflation and currency fluctuations.
It can be easier and faster to obtain than other types of investments.
Business Investment
Business investment is another common way of obtaining a golden visa. Many countries offer golden visa programs for investors who start or invest in a business that creates jobs, contributes to innovation, or supports social or environmental causes.
Some of the advantages of business investment are:
It can create value and impact for the host country and society.
It can offer higher returns and growth potential than other types of investments.
It can provide access to new markets, opportunities, and networks.
It can allow more control and involvement in the investment decision and management.
The Confluence of Fintech and Investment
The confluence of Fintech and investment has not only reshaped how funds are managed but has also paved the way for unprecedented opportunities. As state-of-the-art Fintech platforms offer real-time insights, portfolio management, and risk assessment, investors are empowered to make strategic decisions with confidence. The dynamic landscape of Fintech-enabled investment presents a unique vantage point for investors seeking to secure a Golden Visa.
Making the Choice: Property or Business?
The decision between property and business investments for securing a Golden Visa hinges on individual preferences, financial goals, and risk appetite. Property investments offer stability and a physical presence, appealing to those seeking a tangible asset. On the other hand, business ventures, buoyed by Fintech innovations, offer the potential for dynamic cross-border expansion and growth. Figures suggest that the number of investors opting for Fintech-fueled business ventures to secure a Golden Visa has increased by 35% in the last year.
Conclusion
Fintech-driven investments are an attractive option for securing a golden visa. However, they are not without challenges and trade-offs. Therefore, investors should carefully weigh the pros and cons of each option and choose the one that best suits their goals, preferences, budget, and risk appetite. Moreover, investors should consult with professional advisors and conduct due diligence before making any investment decision.
(Author is CEO, Swadesh Inc)