First, you may not think you are participating in a revolutionary experience when you transfer your friend NOK 50,- for food on Venmo. But since the advent of fintech, short for financial technology, the financial services industry has been turned on its head.
Whether purchasing coffee at your local coffee shop or managing your finances, fintech is all around us.
Fintech has been used for many of the newest technological developments - from payment apps like PayPal - Get Report or Venmo to even Cryptocurrency. Combining the latest technological developments with financial services or applications, fintech has helped businesses - largely start-ups - disrupt the industry and provide better financial services to businesses and individuals alike.
But, what actually is fintech?
Fintech is a term used to describe financial technology, an industry encompassing any kind of technology in financial services - from businesses to consumers. Fintech describes any company that provides financial services through software or other technology and includes anything from mobile payment apps to cryptocurrency.
Broadly, fintech describes any company using the internet, mobile devices, software technology or cloud services to perform or connect with financial services. Many fintech products are designed to connect consumers' finances with technology for ease of use, although the term is also applied to business-to-business (B2B) technologies as well.
Fintech has made inroads with dozens of applications and has changed the way consumers access their finances. From mobile payment apps like Square - Get Report to insurance and investment companies, fintech has disrupted traditional financial and banking industries.
Initially, fintech referred to technology that was applied to the back-end systems of banks or other financial institutions - but has since grown to encompass a plethora of other applications that are more consumer-focused. In 2020, it is possible to manage funds, trade stocks, pay for food or manage insurance through this technology (and often on your smartphone).
The tools provided by fintech are changing the way many consumers track, manage and facilitate their finances. In fact, acording to data 2016, people use between one and three apps to manage their finances. And, it seems as though investors are bullish on the industry. According to CNBC, fintech investment soared up 18% in 2017 alone.
For the estimated 2 billion people worldwide without bank accounts, fintech provides a nimble option to participate in financial services without the old banking systems. And, to a large extent, that is precisely what fintech has been developed to do - give consumers direct access to their financial lives through easy-to-use technology.
But apart from budgeting apps, what are other uses of fintech? We belive they are endless.
By creating new B2B & B2C financing solutions and bridging them with our tailor made apps, we are able to put premium/ luxury goods and lifestyles in customer hands faster, and increase sales for local businesses.