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What is FinTech development? The term “FinTech” is a short form of “financial technology”. It refers to digital technologies that are helping to introduce key innovations in the banking and financial services sector. FinTech innovations went a long way to improve financial inclusion. Several fintech innovations removed some of the constraints of the traditional financial services, furthermore, they offered new financial services.
Financial technology isn’t entirely new
The term “FinTech” has received high media attention in recent years, however, technology isn’t new in the financial services industry. Credit cards and ATMs were earlier examples of transforming the financial industry with technology. It’s just that the current generation of financial technology companies provides digital financial services with a wider scope and larger scale.
Examples of fintech services
The following are examples of fintech services:
1. Mobile banking
Banks and financial institutions have embraced mobile technology to provide convenient access to banking services to their customers. Digital banking provides consumers easier access to their bank accounts. Many traditional banks now enable their customers to check balances or transfer money using their mobile devices. They offer mobile banking apps for this.
You also have “Neobanks”. Unlike traditional banking, neobanks don’t have branches. They meet all of the retail banking needs of their customers using digital platforms.
2. Cryptocurrency trading
Cryptocurrencies like Bitcoin or Ether are built on blockchain, and they are counted among fintech products. Crypto exchanges like Coinbase allow users to trade cryptocurrencies using computers or mobile phones. They offer web and mobile apps for this.
3. Peer-to-peer lending
Many borrowers can’t access traditional lending platforms. The reasons include the lack of reach of traditional banks and financial services companies. Fintech startups have used the blockchain or “Distributed Ledger Technology” (DLT) to establish peer-to-peer (P2P) lending clubs. Here, lenders provide loans to borrowers in cryptocurrencies.
4. Mobile payments and mobile wallets
Many established financial institutions and startups have launched mobile payment apps. These apps offer payment services to consumers right on their mobile devices. These payment apps and mobile wallets use advanced technology solutions to provide robust security, which is reassuring for consumers.
5. Portfolio management and stock trading apps
Fintech companies use emerging technologies to offer services like portfolio management. These apps enable consumers to trade stocks and manage their personal finance effectively.
6. Fintech in the insurance industry
Traditional insurance companies have invested notably in big data and other emerging technologies to automate processes in the insurance sector. They have transformed key functions like claim processing using fintech solutions.
7. “Intelligent” automation in stock trading
Many stock trading firms already use algorithmic trading. They are using artificial intelligence (AI) capabilities like machine learning (ML) and natural language processing (NLP) to bring intelligent automation in this. Popular robo advising services also use AI capabilities.
Technologies that power fintech
A financial technology company might use one or more of the following technologies depending on the use case:
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- Cloud computing;
- Web technologies;
- Mobile technologies;
- Artificial intelligence capabilities like machine learning, natural language processing, etc.;
The fintech industry is growing notably
The global market for fintech is growing. Credit card companies like Visa and MasterCard have made significant fintech investments. Companies like PayPal, Stripe, Grab, CardLab, etc. are making a significant mark in this market.
An Allied Market Research report estimates that the global fintech market will grow from $110.57 billion in 2020 to $698.48 billion in 2030. The report projects a CAGR of 20.3% during the 2021-2030 period.
We talked about what is fintech, and we provided examples of fintech companies and applications. Contact DevTeam.Space if you need developers to make a mark of the fintech revolution.
The largest fintech companies are as follows: Visa, MasterCard, Ant Financial, Tencent (Fintech business), Intuit, PayPal, Stripe, Adyen, Fiserv, Square, Klarna, Nubank, Coinbase, Checkout.com, and Grab.
Some of the top fintech app examples are as follows: Google Pay, Cash App, PayPal, Venmo, Crypto.com, Zelle, Credit Karma, Capital One Mobile, Chime, Coinbase, Robinhood, Stash, Webull, Experian Credit Report, and Fresh EBT.
Some of the most prominent startups in the fintech industry are as follows: Grab, CardLab, Gojek, Klarna, Suning Finance, SoFi, One97 Communications, Sonovate, Lufax, and Ant Financial.