The financial services sector is one of the fastest-growing in terms of technological improvement. Here one can observe startups channeling innovations like blockchain and machine learning with the intention of service improvement.
Fintech means financial technology, which broadly refers to the modernization of technology to confront the traditional methods employed in the finance industry. Fintech solutions embrace a lot of services. These are some of the most prevalent examples.
Mobile payments
Services like PayPal, Venmo or Samsung Pay are the result of fintech. Estimates put over a billion people worldwide using such mobile payment gateways.
Digital banking
Using spreadsheets to budget and track the finances of a business is no longer in style. Digital banks, or challenger banks, keep every finance record in one place: an app on your smartphone. Revolut claims a worldwide customer base of more than 10 million, and many large names now offer business accounts on the same footing.
Insurance technology
Insurtech has changed the way customers deal with their insurance. Premiums can be calculated automatically, and devices like telematics black boxes have been introduced for young or inexperienced drivers to reduce car insurance premiums.
Cryptocurrency
A cryptocurrency is a form of digital or virtual money, purely electronic and requiring no physical banknotes or coins. Bitcoin is the obvious example, and investment in the technology rose sharply over the years before this piece was written.
Blockchain
Blockchain is a data structure which holds transactional records while certifying security, transparency and decentralization.
Crowdfunding platforms
Crowdfunding allows individuals and businesses to pool funds from several sources in one place. Platforms like Kickstarter and GoFundMe made it easier for startups that would otherwise wander from one bank to another for a business loan to ask for funds straight from investors.
Where the money went
Over the decade before this piece was written, the share of investment into fintech inflated from around 5% to around 20%. Financial institutions that are not going digital risk being left behind. In the coming days technology and artificial intelligence will be leading foundations for all businesses, so it is worth looking for a suitable fintech provider and starting the journey of technological advancement.