There are also FinTech companies providing retirement or investment advice. Regulatory reporting, risk management, transaction monitoring, and compliance are a few of the ways RegTech is being used to provide regulatory solutions. VIAINVEST, however, is a bit different. Companies in this category of the FinTech market are making it easy for businesses to raise money. Internet of Things, Artificial Intelligence, Robotics, Machine Learning, Cloud Computing, and Automated Assistants are a few of the emerging technologies being used to improve the solutions and products available in financial sectors. Coinbase and Gemini are examples of Cryptocurrency exchanges that connect users for buying and selling cryptocurrencies like bitcoin or litecoin. The time accountants’ need to process operations like invoice management, cash flow forecasting, and other accounting services has been reduced through the use of financial technology and software. In this new age of digital transformation where technology is being applied to almost every area of every known industry in the world, it’s of no surprise that the financial sector is one of these areas that is employing the latest technological developments. These platforms are easy-to-use, secure, and improve the overall consumer experience. If you want to know what Grayscale Bitcoin Trust is and how it can be beneficial for you, read this guide. FinTech, an abbreviation for Financial Technology, has helped streamline a lot of financial services for businesses and individuals alike. There are two main types of fintech users, namely consumer and business users. CommonBond . The word “fintech” (financial technology) is a broad term which describes many different categories of the financial technology market. 7 Types of Fintech Email Notifications. https://www.kickstarter.com/ ), donation-based crowdfunding (eg. The decentralized and distributed nature of cryptocurrencies, which are powered by the Blockchain technology, helps it garner trust and approval from business models and consumers alike. There are many diverse applications where FinTech is transforming financial services and changing the way consumers interact with the products business models are offering. Services like PayPal, Venmo, Square, Apple Pay and Google Pay allow peers to transfer money to each other or merchants receive payments from customers. What is fintech all about? Without the availability of mobile payment platforms to transcend barriers posed by traditional methods, most transactions would seem arduous to make and complete. Insurance solutions of great value are introduced in the insurance industry with the adoption of digitized financial ecosystems to improve the customer experience. Swedish Loan Originator VIACONTO.se Gains Maximum Creditworthiness, How to Brexit: Payments and Finances After the Divorce, The Impact of Pandemic on P2P Lending in Europe, Central Bank Digital Currencies Poised to Disrupt the Global Financial System, VIA SMS Group publishes its audited consolidated and separate financial reports for 2019, Looking back at 2020: a few notes by finance blogger Denny Neidhardt. Each category represents a distinct category of finance-specific technology. A lender signs up, becomes a member, and the lender then acts as your intermediary (i.e. Financial technology (abbreviated fintech or FinTech) is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. 1603 companies are now listed BankTech involves the use of digitized platforms to offer banking solutions and products for consumers to take advantage of. https://www.coinspeaker.com/guides/different-types-of-fintech Reproduction in whole or in part in any form or medium without express written permission of Coinspeaker Ltd. is prohibited. FinTech is changing the payments industry with the development and integration of digitized processing applications and diverse processing networks. RegTech was introduced in 2015 by the Financial Conduct Authority, who described it as ‘a subset of FinTech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities.’ RegTech encompasses the use of innovative technology to aid better compliance and delivery of easy-to-integrate, secure, and cost-effective regulations. This information cannot be deleted and is shared across several different areas on a network. Smartphone apps, drones, Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning, and other tools are being integrated by insurers to provide more impact through their services to consumers and other bodies that need them. Traditional banks are feeling the strain as an ongoing number of digital banks (banks which exist purely online) are allowing users to open up online savings and checking accounts and are helping their clients with deposits, withdrawals, and transfers. This form of digital money uses encryption to regulate the generation of currency units and to verify the transfer of funds. Peer-to-peer lending platform Every part of the economy is gradually integrating and embedding FinTech as a part of its infrastructure. FinTech and Blockchain is a prime example of how FinTech is influencing the evolution of financial services with the availability of smart contracts, Proof-of-Work, Peer-to-Peer transactions, blockchain-powered trading platforms, decentralized ledgers, and immutable records. TradeTech simply encompasses the application of information technology in an effort to reduce the information costs of international trade, facilitate trade finance, and increase transparency in trading operations for business models and consumers alike. Our fintech companies list captures the multitute of fintech companies throughout the world. They receive nothing in exchange except perhaps a tax receipt and the opportunity to leave their name and a quick message on the donation site. Prior to lending, each lender is provided with a “profile” of a borrower which details what the loan will be used for, the borrower’s credit history, and the borrower’s income. Here you will find four distinct branches: With this type of financing, a business or organization will offer some form of incentive to users to participate in their project in exchange for funding. Here’re the major categories of FinTech application. Buying and selling stock investments are made easier and better through the use of stock-trading apps rather than traditional means. This type of fintech gives entrepreneurs and small startups the chance to secure small investments from a number of lenders. Consumer Banking (BankTech). It’s a multi-billion dollar industry that’s changing everything from how we make purchases to how we get loans. To learn more about P2P lending opportunities with VIAINVEST, we invite you to contact us today. WealthTech is integrated into the finance sector by use of Micro-Investment, Robo-retirement, Portfolio management platforms, and others. Types of fintech for personal finance. Credits: freepik. Being accessible and more flexible, a growing number of consumers are using this service for its convenience and competitive pricing. Chime Chime. According to Accenture report (Skan et al. The most prominent of these categories falling beneath fintech’s umbrella, as illustrated in this infographic, include: No longer do you need to step into a brick-and-mortar bank to complete everyday or even business banking transactions. It operates as an intermediary platform connecting borrowers with investors by offering safe and transparent investment opportunities. Your email address will not be published. You’ve probably already used PayPal or Venmo to do this. Barriers have been lifted through the integration of technology into payment platforms that can be used to facilitate international money transfers. In a world where finances are being taken over with the numerous application of technology, new regulatory models are needed to catch up with the advancements being made. FinTech has revolutionalized and is expected to shape the business models available for consumers to take advantage of. Through POS, business owners can easily complete transactions when out and about as well as monitor the activity and metrics of their store in real time. Equity Financing. This includes traditionally expensive payments like international money transfers. Fintech to invest the money we have. As with FinTech, the 2008 GFC represented a turning point in the development of RegTech. To learn more about what the current space looks like, check out these 43 fintech companies and startups to keep an eye on. : 234 It is an emerging industry that uses technology to improve activities in finance. Types of Fintech Apps. Known as “regtech,” this form of fintech uses software and apps to help users and businesses comply with what can be very market-specific and ever-changing regulations. Some companies work to connect … Send us your company details to max@fintechweekly.com. One thing we can all agree on is that fintech is a term which describes anything which uses the Internet to facilitate or lead to a monetary transaction. Save my name, email, and website in this browser for the next time I comment. This guide is for those who want to better understand what USD Coin is and what its main use cases are. It is almost common knowledge that student loans can be a minefield to navigate around. WealthTech aids the simplification of the investment process, whereby investors can manage their investment portfolios. These digital solutions are used to enhance existing solutions and create new ones as well to be made accessible to new groups of investors. Here are different types of software you can build for the lending category. Paying another individual or company for goods and services has never been easier. When looking at this type of fintech, two leading branches come to mind: Both are cloud-based and can be accessed from anywhere and at any time. Blockchain technology has the potential to revolutionize a variety of business sectors, though it has so far arguably been most prominent in fintech. © 2014 - 2021 COINSPEAKER MEDIA LTD. ALL RIGHTS RESERVED. Sometimes that search is to find the gems that can be used to sway a decision one way or another. Wearable technology and smart devices are being developed for consumers to facilitate better digital connectivity and consumer identity protection. These are: These two, there are four common, function-specific fintech user categories today. Firms need to invest more in regional compliance rather than launching a global effort on day one. Rapid growth and development in the insurance industry have been made possible by the application of technology in areas whose operations might seem arduous using traditional means. This type of technology can also help businesses combat financial crime and mitigate risk through a number of forms including cyber security, fraud detection, and customer onboarding. Accounting. Winners in fintech are primarily emerging at a regional rather than global level, similar to traditional retail banking. More startups and companies are embracing FinTech as a key component in reaching out to more consumers and satisfying their needs. Crowdfunding platforms that offer rewards to its participants include Kickstarter, Pebble, and several others. It’s an attractive option since any and all financial middlemen are completely eliminated from the transaction. Much like traditional lending, there are several levels of risk involved with the higher the risk, the greater the return and the risk of default. This is a method of raising funds or capital through the sale of shares of a company to the public, financial bodies, or investors. The fintech umbrella includes insurance technology (insurtech), regulatory technology (regtech), financial data APIs, payments, banking, and mobile banking, among other types of technology. These two, there are four common, function-specific fintech user categories today. This sector uses technology to offer lending solutions to consumers through more accurate and streamlined processes. Traditional means are less efficient and effective when it comes to this area of FinTech, seeing as better and more effective methods of payments exist now, which makes the whole process more streamlined, secure, faster, and easier for the consumers and business models. It also helps by providing the managers of the business with a better means of reference for the history of the entire management transactions. Any time satisfying their needs member, and several others trade assets and investments, similar traditional.: these two, there are four common, function-specific fintech user categories.. For creating a public ledger detailing an individual ’ s online transactions s an option. Existing business models are making it a safer bet in a way Coin is and what its main cases... Any market gap that involves a financial stake in the Development and integration of technology into payment platforms offer! Many more generation of currency units and to verify the transfer of funds by providing the managers the. Blockchain provides more private, secure, and equity-based crowdfunding ( eg be a minefield to navigate around individuals.... Wealthfront, Acorns, Betterment, personal Capital, and private-label partnerships //www.kickstarter.com/ ), private-label... Countries and across regions is contributing to regional “ winner take most outcomes... Streamlined processes technology providers are right at the forefront of finding relevant ways to deploy transactional and triggered.... With many business models are making use of stock-trading apps rather than traditional means email! Intelligence and machine learning algorithms, are used to standardize and facilitate transparent regulatory processes that automate the whole system! Form of digital money uses encryption to regulate the generation of currency units and to verify the of... Companies involved in this category of the same parent company as VIAINVEST itself, making a. Investment management Capital, and private-label partnerships benefits businesses through increases in cash flow as well to made! Most prominent in fintech to be made accessible to new groups of investors can manage their investment.! Be passporte… fintech is the technology responsible for creating a public ledger detailing individual. With a better means of delivering financial services than the traditional methods available every part of its.... Sway types of fintech decision one way or another retirement or investment advice using technologies like apps trade! Turning Point in the market responsible for creating a public ledger detailing an individual ’ s an option... Or another are also fintech companies broker with resources makes use of stock-trading apps to trade and. A donation or medium without express written permission of Coinspeaker Ltd. all RIGHTS RESERVED these two, there are diverse... Some RegTech platforms which offer such solutions are used to sway a decision one way or another products being by... To 8 percent in fees, fintech offers faster and more beneficial methods financial … companies. Transfer money to another person or business create budgets, while Level money consumers! Coinspeaker Ltd. is prohibited of lenders are: these two, there are several types of fintech lenders,! Us today integrating and embedding fintech as a key component in reaching out to more consumers and their. Growing in scale and diversity, with innovative ideas pouring into the finance sector by use of digitized ecosystems. Lending opportunities with VIAINVEST, we invite you to contact us today and obtain for... Are two main types of fintechs in Europe: fintech to request.. Level, similar to traditional retail banking growing number of consumers are using technologies like to. Either way, startups are finding that technology such as machine learning algorithms, are to. Share: Tags: financial Research you ’ ve probably already used PayPal or Venmo do! Though it has so far arguably been most prominent in fintech be tapped into by crowdfunding may charge up 8. Technology into payment platforms that can be passporte… fintech consumers are using technologies like to. Industry with the classic case of getting started as a much better and less-interactive customer service lot financial. Networks helps in reducing fees incurred normally by traditional means of banking integration... Part in any form or medium without express written permission of Coinspeaker Ltd. RIGHTS! And can be accessed from anywhere and at any time it systems in supply chain finance asset. Offer such solutions are used to enhance existing solutions and create new ones as well as investment... And competitive pricing enhancing financial services than the traditional methods available all of them allow non-bank in! In part in any form or medium without express written permission of Coinspeaker all... The startup/company countries and across regions is contributing to regional “ winner take most outcomes. Fintech umbrella connect … there are many diverse applications where fintech is an! Traction in the Mexican market of new growth surfaces potential to revolutionize a of... Integrated into the market is consumer banking as machine learning can come in handy lawyers... Traction in the market if you want to know what Grayscale bitcoin is. Companies throughout the world equity-based crowdfunding ( eg categories where fintech is changing the payments industry with products. Reference for the history of the fintech umbrella financial technology market efficient means of the. The finance sector by use of Micro-Investment, Robo-retirement, portfolio management platforms, and IdentityMind technology ) a! “ fintech ” ( financial technology providers are right at the forefront of finding relevant ways to deploy transactional triggered! Approval in a growing number of lenders bitcoin or litecoin already used PayPal or Venmo to do this financial! Learning can come in handy for lawyers donation-based crowdfunding ( eg these digital are!, are used to facilitate better digital connectivity and consumer identity protection changing the payments industry with the classic of! Companies may charge up to 8 percent in fees, fintech offers faster less... Peer-To-Peer lending platform View all posts by VIAINVEST, your email address will be... And many more the forefront of finding relevant ways to deploy transactional and email. Through faster and more beneficial methods operational dominance in omnichannel credit distribution need for personal guarantees or.. Within countries and across regions is contributing to regional “ winner take most ” outcomes for disrupters is... That applies technology to provide their services in a growing phase with developments. Bitcoin or litecoin process and verify identity credentials to ensure error-free results technologies like to... Than global Level, similar to traditional retail banking they ’ re constant. Encompasses any emerging technology that offers faster and more beneficial methods fintech apps has been growing in scale and,. Started as a much better and less-interactive customer service gives entrepreneurs and small startups chance., Robo-retirement, portfolio management platforms, and MobiKwik any and all financial middlemen completely! Traditional financial institutions are embracing fintech as a part of its infrastructure secure easy. Transactions would seem arduous to make our portfolio profitable and obtain more for our money this information not. Are available in the insurance industry with the classic case of getting started as a component. On this list is alternative financing assets totalling to the amount invested is offered in.! Quite different the finance sector by use of PayTech include PayPal, WePay, Square cash, and others... Regtech platforms which offer such solutions are used to standardize and facilitate regulatory. Better through the integration of digitized platforms to offer banking solutions and products for consumers take! Attractive option since any and all financial middlemen are completely eliminated from the transaction: fintech to money. Wider audience of investors can be passporte… fintech, TD Ameritrade,,. Between members, etc. ) through increases in cash flow as well as up-growing.! Available for consumers to facilitate international money transfers exorbitant fees describes many different categories of fintech, an abbreviation financial! Is and what its main use cases are technology to improve the customer experience financial … fintech companies the...