What is Fintech:
Fintech is the term used to refer to innovations in the financial and technology crossover space, known as financial technology, and typically refers to companies or services that use technology to provide financial services to businesses or consumers.
How Do Consumers Benefit from Fintech:
Fintech innovations have the potential to benefit both consumers and small businesses. These benefits could include expanding access to financial services, reaching underserved consumers, reducing transaction costs, offering greater convenience and efficiency, and enabling better controls over spending and budgeting.
What Has Fintech Taken Over:
Fintech has taken over many of the financial services from payment apps like PayPal (PYPL) or Venmo to even cryptocurrency. In general, any company that uses the internet, mobile devices, and software or cloud services to provide financial assistance to its customers can be referred to as “fintech.”
Types of Fintech:
Cryptocurrency and blockchain technologies are some of the most well-known, and most scrutinized examples of fintech. Cryptocurrency exchanges, such as Coinbase and Gemini, allow users to buy or sell cryptocurrencies. Blockchain technologies also have the potential to move into industries outside of finance to reduce fraud.
Stock trading apps, such as Robinhood and Acorns, have become a popular and innovative example of fintech as investors can trade stocks from anywhere with their mobile device instead of visiting a stockbroker.
Fintech has even disrupted the insurance industry. Insurtech (as it has been so-called) has come to include everything from car insurance to home insurance and data protection.
Fintech companies in the lending industry simplify the way by which people borrow money. In the past, people turned to banks or credit unions to obtain loans. Today, many fintech companies offer consumer loans by merely going online to apply. And because these organizations’ processes and systems are automated, approval happens quickly.
Written by Anna Li