As we know, technology has covered many fieldsincluding the financial sector. Companies in this sector have immersed themselves in this world of the Internet and FinTech, thus changing the way of making money and investments.
Few people know this term, but the truth is that we have come across it several times. And it is that surely, at some point, you have made a bank transfer with your mobile phone to a business or personeven check your bank balance through a financial app Certain?
So to get down to business, a FinTech is a new way that companies have found to apply technology and offer financial services in a more convenient way.. If this topic has caught your attention, continue reading and learn about the new financial future.
What is fintech?
Surely you remember that, previously, To change money from another currency different from that of your country you needed to leave home and look for an exchange houseEven when you needed money, you had to go to the bank to get a loan, and surely now you realize that you no longer need this. Do you know why? Because FinTechs have simplified these actions.
The word FinTech is the finance and technology abbreviation. This term covers any action that is applied to new technology in terms of financial and investment activities. Basically, They are companies that offer financial services but in an innovative way. Everything you needed to do before in traditional banking, today you can do it virtually from wherever you want, because today there are digital exchange houses.
Yes you need cash you can use the credit line of your card and access the cash in exchange for a small commission. With this it is more than clear that this service is here to stay and to change the world by getting closer to people thanks to technology.
What are the characteristics of financial technology?
It has become clear that this system is powerful and a alternative for the financial market. Although it tends to be confused with a bank, the truth is that this has a much more inclusive and modern visionwhich caters more to the needs of the public and is available to the public, adapting to what the user requires.
So we will tell you what its characteristics are so that you can take them into account:
- Business model focused on the user experience: As we have already mentioned, they are designed according to the public. Previously, it was a problem to go to the bank to carry out a transaction, this is where FinTech focused and considered its efforts to enable users to carry out any activity quickly from the comfort of their home or office with just one click. Within this, the fact of response could also be taken as a characteristic, since they are very short and profitable times.
- Agile work methodologies: Not only is a quick response time sought with the client, but also within his work team. A good internal organization gives you greater effectiveness when solving problems in the shortest time.
- Constant technological innovation: As FinTech is born and created within the digital age, it is essential to be at the forefront of technology, making it possible to carry out transactions from anywhere in the world at any time, seven days a week almost immediately. So they provide transparency in all their processes and products.
- They prioritize the safety of their users: Although everything digital poses a risk due to the fact of sharing information over the Internet, they have created departments with a high degree of security so that the data cannot be stolen or hacked. They implement protocols that validate each transaction using tokens, encryption systems, and other protocols.
- They build ecosystems of alliances: Fintech companies do not seek to compete with the financial sector, on the contrary, they focus on complementing their proposals and improving them. In other words, it offers services in a simpler way by simply asking for an account number or ID to transfer money from person to person. So that, in seconds, the users of these banks can successfully achieve the payment.
How does FinTech work?
This was born as a necessity, because nowadays it is hardly imaginable that a person could communicate without a mobile device or without a social network, but years ago none of this existed. And that It changed due to the imminent need of the human being when telecommunications managed to connect the world. From there starts the obligation of the Fintech.
Knowing how it works is easy, if we see it as a digital modality focused on customer comfort. And it is that although financial products and services are simple and innovative in themselves, FinTech is in charge of making it even easier and more practical, since The operation of this is based on carrying out the processes of banking, accounting, administration and people’s economy in a strategic way. through tools such as mobile applications, web platforms and other services.
So both the consumer and the company manage to be satisfied with the procedure regarding the management and agility. Which means that it works by means of money transfers virtually.
Impact of FinTech and digital banking
The Fintech break into the financial sector after the communicative evolution of the world through the internet, Since then a need arose in the market regarding banking. Which means that meeting the demand for a service adapted to the digital and technological world became urgent. It is that the revolution of the use of tablets and smartphones touched the banking sector making way for the Challenger Banksneo banks and online banking.
It is that the digitalization era has also changed the way we use our money, without a doubt this event has generated a great social impact within the economy, not only promising customers save time, comfort, simplicity or simply automate financial and investment routines.
Rather, the most relevant aspect of the companies that are making a living in the Fintech industry and that differs from traditional banking is social inclusion, in other words their collaboration in the growth of the economy does not discriminate strata. Any natural person, independent workers or entrepreneurs have access to these products and services; from any country or community Fintech provide solutions to users on how to relate to money in daily life.
What does it take to start a fintech company?
Getting started in any project implies challenges and smoothing out difficulties, it is the same with new companies in the FinTech area, these are some considerations to start in this business:
- The first thing you must determine to enter the financial technology ecosystem, is to concentrate on finding a niche market. This point is essential to offer what or which product.
- Advise you on the restrictions or regulations of the country where you are to establish this type of company.
- Complete a good work team (computer experts) and the best software provider.
- The constant updating is also another key piece in this business model that is characterized by innovation; It is not only necessary to continuously train, but at the same time you must be alert to new business opportunities in the sector.
10 FinTech companies that dominate the sector
Here is a list of companies that are within emerging technologies (startups) most appreciated and recognized by the public:
kavak.com
This company is dedicated to buying and selling cars online. According to studies carried out and after having raised more than 600 million dollars, has positioned itself as one of the most valued startups in Latin America. It is based in Mexico City, but its great boom has given it a presence in other countries such as Argentina, Brazil, Colombia and others, promising to go further and take over other continents.
flywire.com
Their motto as a company is “We deliver the most important and complex payments”, emphasizing the specialization they have on massive payments, facilitating the user experience. It has local and international clients, allowing the transaction of payments between currencies of different countries worldwidein turn offering a safe experience avoiding setbacks from the realization to the unification of it.
It should be noted that it is considered one of the first Spanish startups listed on the US technology stock market.
finanbest.com
It’s a fintech created in 2016 by experts in banking and technology. Today it is considered one of the most efficient and leading portfolios of investment funds and pension plans in Spain. your service Robo Advisor combines passive and active management. This platform serves both natural persons and registered institutions.
They are regulated by the National Stock Market Commission (CNMV) and registered in Fogain, which is the Investment Guarantee Fund. In turn, they are backed by Cecabank, PSN and Santander, which means that it is quite safe and reliable. Because it is an independent organization, it manages your savings and allows you to earn +3% annual additional profitability.
revolut.com
It works like a bank, since From this app you can open a checking account, obtain a credit card, receive money via QR code, as well as acquire Cryptocurrencies, offers the possibility of investing in the stock market and others. The best thing is that it does not charge commissions if you want to withdraw cash regardless of the country where you are.
This platform is super easy to use and the usability of its application is undoubtedly a very positive pointtaking into account the characteristics that a fintech should have. From there you can manage everything without having to leave home and have control of everything without using external applications.
InbestMe.com
The objective of InbestMe was to think of a new way of investing and for people to believe in financial culture. Is startup is dedicated to the management of investment portfolios, among its product catalog we can find pension plans, ETFs and other services.
They use a technology that allows automating all processes and providing ease of costs and profitability. He is currently one of the The most adaptable Robo Advisor on the marketwhich is why it is one of the main ones in terms of indexed management.
fintonic.com
fintonic is he marketplace most popular financier in Spain, It was created in 2012 and since then it has been in charge of managing all operations in one place. With it you can have everything controlled regarding your expenses and bank accounts, since it notifies you when you have extra charges, duplicate charges, insurance expiration and others you can be aware of.
With it you don’t have to worry about your safety, because its mission is to safeguard your finances and educate you. Has a license from…
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