Fintech can be defined as “the evolving intersection of financial services and technology” (PWC). In a nutshell, the industries’ aim is to look at traditional financial functions and seek out areas where technology can make the current process more cost effective and hassle free for the customer.
Although the industry as a whole is referred to as
The technology used can often overlap between the different sectors of
There’s no doubt that mobile and online payments have completely transformed the way we transact today. Younger generations are entirely oblivious to what a cheque might be and many experts believe the debit and credit card also face extinction in the not too distant future.
PayPal was not only one of the first
Established brands like Apple (Apple Pay) and Google (Google Wallet) have also realised the potential in this market and
Insurance is a necessity we are all exposed to in some shape or form and its one of the oldest industries in the world. It has remained unchanged for many years but a technological revolution has been sweeping through it in recent times.
From everyday health insurance startups like Clover and Oscar to car insurance providers like Driveway and Root Insurance, all working towards improving the customer experience and expectation. Then there’s of course also the very “21st century solutions”, like Digital Risks, that provides cover to online businesses specifically.
Regulatory technology is in high demand at the moment as regulatory bodies are putting an increasing amount of strict regulations firmly on the shoulders of financial services companies. Non-compliance often results in significant fines and serious reputational threats.
Lending money has traditionally been the territory of banks and credit unions. However, the public’s lingering distrust of conventional financial institutions and the sheer effort involved in taking out a loan from legacy banks mean that many
Peer-to-peer lending platforms, like Zopa and Lendico, bypass banks and credit unions and bring individual lenders and borrowers into contact. This ideally means that lenders get more interest than on a traditional savings account and borrowers pay less interest than on a bank loan. There
Other startups like
Equity crowdfunding makes it easier for individuals to invest in unlisted commercial companies, helping entrepreneurs to get their
Without the online world, it would have made it very difficult and
As the world is getting smaller and smaller through globalisation, more and more people are looking to transfer money to a wide variety of countries in different currencies. In the
TransferWise cleverly matches buyers and sellers for each currency with the aim of cutting fees individuals and small businesses are charged on international transfers, while WeSwap focusses on swapping travel money directly with other users.
One of the biggest benefits
The reason this area of finance has become much more accessible is largely due to advancements made in the
The banking industry is perhaps in the biggest need for renewal and overhaul. It’s an old and slow moving dinosaur. Disruptive technologies in the banking industry have been a hot topic in recent years. Many of the
Alternative banks like
The list is by no means exhaustive. There are