Fintech companies arrived with a great innovative force, and they will stay for a long time doing the job for which they were created, providing their technological services in the finance and banking sector. Fintech companies have the power to break in and generate disruption in the traditional financial sector, making significant and necessary improvements in the industry through greater efficiency, reducing operating costs, and generating more universal access to all financial and banking services, also, to offer a higher level of transparency.
As is well known, the term Fintech has emerged in recent years to refer to the technology used in the back-end of traditional financial institutions. The concept evolves rapidly with a consumer orientation since it has the end-user as the center of attention. At present, many technological applications oriented to finance have appeared, at the same time, a variety of participants, including traditional banking, new startups, entrepreneurs, investors, among others.
Your role for years to come
Fintech companies group all those companies that provide financial services that use “cutting edge” technology to offer innovative products and services, such as cryptocurrency management. The momentum of Fintech started in 2010, especially in the United States and the United Kingdom. Later in other countries such as Spain from 2014.
Why were Fintech born?
Fintech companies are born from the need to optimize banking technological processes, such as payments or those transactions that can be carried out through mobile telephony, also in products such as crowdfunding and advisory services such as those already mentioned. Also because digitization is increasingly imperative in the market, in which every day there are more demands, especially in the speed and versatility of online services.
From this point of view, it is possible to intuit why Fintech companies will be so important in the coming years. Companies like Google, Amazon, Apple, Facebook, and Alibaba want to offer services immediately and with fewer costs. This happens by creating algorithms that exploit the Big data of purchases and sales that occur on their respective platforms.
In the case of Google, it has already obtained a license in Lithuania to operate as Fintech, and this is because the most precious value is currently our data. That is why privacy policies are increasingly strict. Acting as a Fintech is sometimes not easy since it is necessary to be up-to-date, especially concerning strict regulations on customer data treatment, which is why banks have to take the lead in the protection of such data.
What do you think about this topic? What do you think the future of Fintech companies will be?
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