A Fintech is a type of company that groups together technological financial companies whose purpose is to contribute new ideas, and which, making use of technology, make reformulations in terms of information, mobile applications, and things related to big data, in addition to improving the way to understand and provide the financial services that are required by the employer. Next, we will know specifically what these types of companies do.

What do Fintech companies do?

These companies are dedicated to serving as intermediaries in the world of finance through many aspects, such as loans, transfers, financial and investment advice, purchase and sale of securities, among other aspects, and in which more are emerging every day Fintech companies. Its exponential growth is due in large part to the great crisis produced by the collapse of the investment bank Lehman Brothers, which produced great disappointment and discontent with traditional banking, as a result of this is that Fintech companies emerge as true alternatives of financing and investment, which largely covered the lack of traditional banking that ceased the function for which it was created.

Fintech are here to stay

This type of business is based on a good base, which consists of the great utility they provide to the finance and investment sector. Its strength lies in the application of technology in order to offer fast and reliable answers to users of financial products and services. Fintech companies allow different companies in the banking sector to have more competitive and efficient products and services.

Functions and services of Fintech companies

There are a wide variety of companies that, depending on the sector or financial branch to which they are dedicated, can be classified into different types of functions:

Financing to individuals and companies

This branch of Fintech companies is dedicated to financial advice and support for those small and medium-sized companies that are especially starting up, through specialized web pages.

Investment advice and financial support

It is the technology that allows automating the advisory processes, both for large companies, SMEs, startups, private users, among others, bringing with it the reduction of costs and the elimination of payments for advisory commissions, which opens up a “vast field ” in the world of finance and investment advice.

Transfer of funds

They are the companies and platforms that managed to “break” the monopoly fence of the banking entities, and creating better mechanisms for money transfers at a lower cost and in a more transparent and simple way.

Payments and collections through mobile devices

It consists of the use of mobile devices in order to make transfers and receive money safely, quickly and easily, without the need to go to the bank in person, this is a practice that has more and more followers and that has been a success in the sector.

Personal finance information

They generally work through applications, in order to facilitate the understanding of the accounts by users, for example, income, withdrawals, direct debits, payments, treasury, among other movements, likewise, obtain updated information on their accounts and of recent transactions.

Remittances

It consists of the creation of platforms and technologies that specialize in the transfer of money made by emigrants to the accounts of relatives in their native country, it is important to take into account that remittances represent an important percentage in the economic movement of many Latin American countries.

What do you think about this topic? Did you know all these functions and services of Fintech companies?

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