Types Of Fintech That Revolutionize The Financial Industry

Fintech are startups or technology-based companies that are dedicated to the world of finance and that are representing a before and after compared to traditional banking. Therefore, knowledge of the different types of Fintech is key for experts dedicated to Financial Management.

Although it was born just 10 years ago, the Fintech ecosystem is very varied, and financial-based technology companies can be divided into up to 20 different types, depending on the field of finance they cover.

Main types of Fintech that exist
Although there are many types of Fintech, the ones that are currently experiencing the greatest development carry out the following activities:

Financing for individuals and companies: Its greatest value is the immediacy when lending a loan. They are easy to create because today it is easier to access information systems, databases, etc.

Money transfer: Kantox or Flyware, are examples of Fintech dedicated to it. Your business model can reach 1 or 2 million customers in a relatively short time.

Advice on investments and personal finances: They advise the user, for example, to choose the best investment fund. Some of them begin to earn money in just 6 months, because they have managed to offer useful information to their users.

Mobile collection systems: It is something that traditional banking has also had to adapt to and that generates a satisfactory experience for the user.

Investment platforms: They can be dedicated to solidarity or economic finance.

Personal finance systems through apps: This is the case of Fintonic.
Loans: P2P, crowdlending, crowdfunding. It allows the user to obtain financing for any type of company in just 72 hours, so they have great potential.
Fintech dedicated to Factoring.

Financial comparators: They allow us to know who is going to give us the best credit.

Lending buyers (through algorithm systems): They tell us how we are going to more easily achieve a crowdlending operation.
Deposit comparators.

Aggregators of offers in the real estate market.

Mini-operations (microcredits and microloans). This is the case of Divus.
Currency management.

Equity finance: Allows obtaining capital through the sale of shares.

Challenge banks and Neobanks: It is a company with an initial layer technology but with banking infrastructure. In this way, it is a hybrid between Fintech and banking.

Direct debit of payments: To improve the control of invoices and expenses.

Platforms for commercial transactions: This is the case of Paypal.

Payments to collectives (fund collector).

Fintech dedicated to the movement of remittances (TransferWise).

Advantages of Fintech for the user

Fintech companies have important advantages for consumers compared to traditional banking, such as savings (in commissions, costs, time to carry out operations), transparency and flexibility, as they are more focused on the user, or quick response, since these startups in the digital finance sector are available 24 hours a day.

You can complete this information in the webinar given by Francisco Javier Moreno on “Digital Finance: The Importance of Fintech” for EALDE Business School.

Originally posted 2023-02-08 10:06:03.