Fintech and its impact
To begin with, it is necessary to understand what the word is!
"Fintech" - "financial" + "technology," which is needed to provide customers with appropriate financial services and products. Fintech is popular in areas such as insurance, investing, and banking in general.
Fintech companies rely on new licenses, payment structures, investment services and bank accounts for their business.
Fintech was once thought to be a threat to classic banking, but this integration is actually proving to be very beneficial. The development of fintech carries a "moving" effect that inclines banks to innovate.
Fintech companies are a strong pillar for banks, providing certain services for the competent application of existing data. In addition, with growth of about 26% annually, the fintech industry is considered virtually the most dynamic in the world.
Alternatives to digital cash, such as cryptocurrency or points payments, have become commonplace, but if it weren't for fintech, it wouldn't be possible.
Let's look at some examples:
Individual-to-individual credit, seriously monitored, is more private. Younited Credit, Leetchi and Pumpkin help customers with P2P lending. This is considered an alternative to a bank loan.
Everyday bank fintechs
These are payment account services.
Technology for capital.
Financial technology has led the way for savers to find optimal accounts that allow them to earn money from savings.
High-yield savings accounts are offered that are not geographically restricted and also have affordable transaction costs.
Now is the time to talk about the benefits
Why is it profitable?
Fintech responds 24/7 with mobile apps, chat and other means to improve customer service.
A bank account can be opened online in just a few clicks. Typically, companies are not indifferent to this.
3. Benefit and price
It goes without saying that digitization lowers costs, so the rewards for the investment are quite generous.
Pricing is transparent and uncomplicated thanks to financial technology.
What does the future hold for Fintech?
Fintech banks are becoming more promising and interesting for clients, but as for forming a bank from scratch, it's still quite costly due to high operating costs.
Should I set up my own fintech bank?
New technologies are needed at least to overcome serious transformations. If this is what you need, then by all means take advantage of Fintech.