What is Fintech and what is its future?

Fintechs are start-ups or technology-based companies dedicated to the financial field, and are assumed to be a before and after compared to traditional banking. It is therefore important for financial management experts to understand the different types of financial technology.

In an era where everyone wants to know if there is still innovation to develop new products and services, the term "fintech" is emerging and gaining momentum, with the promise of revolutionising the way we relate to our money.

Companies entering the field hope to improve the way we use technology to understand and interact with financial services.

They aim to create money services that are easy to sign up for, easy to understand and standardised in price, so that more people and businesses (including investors and borrowers) can access them.

Origin of Fintech
The etymological origin of the word Fintech is composed of the terms 'finance' and 'technology'. These words, as the name suggests, refer to companies related to services in the financial sector that leverage technology to offer new services.

Fintech can be defined as an umbrella concept for financial technology companies that seek to generate new ideas and reformulate, understand and deliver financial services through new information technologies, mobile applications or big data.

Fintech companies are engaged in intermediation in many aspects of the financial sector, including remittances, lending, securities trading, financial and investment advice, etc., to list several areas where multiple fintech companies have emerged.

Here are some concepts to consider:

How does Fintech work?
Fintech works like a classic, primarily digital startup. The focus of the business strategy is the customer. It is common for people to compare the services provided by banks and startups.

Fintech brings mainly five types of innovation, namely payment platform, digital credit, crypto assets, blockchain and crowdfunding. Startups (referred to as startups and financial institutions) are working in this innovative field.

Some of the products that are driving global financial innovation include digital currency (Bitcoin), electronic payments, digital loans and savings, programming interfaces for public applications called APIs, crowdfunding and robo-advisors.

The types of Fintech that exist include the following:

Types of Fintech
Although there are many types of Fintech, the most developed ones are currently performing the following activities:

Wealth advice and management.
Personal finance
Alternative financing
Payment services
Big Data
Online customer identification
Cryptoassets.
Financial technology companies are here to stay. Their strength lies in application technology that provides answers to users of financial products. To a certain extent, they democratised the method of financing and circulation and, in many cases, quickly laid the foundations for traditional financing and fund management formulas.

The concept of fintech is still being defined, as it is relatively new and we will gradually see its massification. So, if you want to know more about Fintech, I invite you to read on.

 

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