What You Should Know About Fintech – A Complete Guide
October 26, 2018
We often hear the term Fintech nowadays, but very few are aware of what actually Fintech is and why all businesspeople should know about it. This article will focus on all these details of Fintech.
What is Fintech?
It is the abbreviation for Financial Technology, in simple terms it means using technology in designing and delivering financial products and services. Fintech is widely used in many business sectors like investment management, lending, advice, and payments. It also makes use of multiple techniques like mobile applications, big data and many other analytical options to help the businesses and its customers.
Banks are one of the top beneficiaries of this technology as it is providing fast access to all the financial transaction even to those who were underserved.
Who uses Fintech?
The new startups, as well as the traditional finance companies, are active in Fintech. The startups active in Fintech are not exactly banks or insurance companies but they can be said as companies that provide targeted solutions instead of one-stop finance solutions. One of the most popular examples of startup active in Fintech is Ripple that provides a payment method over distributed ledger technology. Other examples can be international money transfer providers or credit score services etc. Fintech for startups, even though is not a one-stop solution, provides some amazing solutions like video identification features.
Traditional banks, insurance companies, and other major financial institutions are also investing in Fintech. Some are investing in Fintech to enhance their current services and products while others are supporting the startups to create a whole new module for them together.
How Fintech is helping businesses?
Earlier when we thought of starting a business the first step was to get the finance, either through loans for collateral or some similar means. But with Fintech these times are changing. Fintech likes mobiles payments, crowdfunding options, and easy money transfer services are making the dream of starting your business come true easily by accepting payments from people all over the world.