Fintech now accounts for a vast array of technological solutions that many of us take advantage of on a daily basis, but what exactly is it and how many different types of fintech are there?
You only have to take a look at the top Fintech apps 2022 to appreciate that financial technology, known as fintech, encompasses a whole world of financial services, from banking facilities to mobile software, including cloud services, together with online transactions, and so much more.
Here is a look at some fintech examples and how they are integral to the digital transformation that is happening in the world of finance.
A new era of banking facilities
Arguably, one of the biggest areas of finance that has been influenced by the fintech revolution is banking.
Traditional banking facilities have evolved to modern life and demands, thanks to fintech.
Mobile banking apps are used on a daily basis by millions of customers and some banks are completely digital and only exist online, with no physical bank branches to serve their customers.
People pay for goods and services in all sorts of ways these days. Cash is rapidly becoming a payment method that is going to be obsolete in the near future and fintech is all about providing services and facilities that give consumers a number of payment options.
You can use your mobile phone or an app to make payments thanks to fintech.
About a quarter of retail sales are now e-commerce transactions and that number is only going to get bigger.
Whether you are trading stocks or buying cryptocurrencies this is another area where fintech has become hugely influential.
There is little doubt that fintech has fundamentally altered the way we interact with the stock market and fintech has opened up a world of trading possibilities.
What is particularly noticeable about the influence of fintech is how more people have been able to gain access to financial markets than ever before.
The insurance industry has also been influenced by fintech
Consumers want a quick and easy way to compare insurance costs and also want to be able to contact their provider in the easiest way possible.
Fintech has had a positive impact on the insurance industry by making these things happen. It has played such an active role in transforming insurance services that fintech has become known as insurtech in the industry.
Consumer lending has also been revolutionized by fintech. The growth of deposit and lending fintech has led to the creation of so-called microloan platforms.
These platforms make it easy for consumers to choose a buy now- pay later option at the checkout. Making it more seamless to take advantage of credit facilities if that is what they want.
New ways of raising money
Last but not least, fintech has been instrumental in introducing new ways of raising capital.
Crowdfunding has become a mainstream borrowing option for small business owners and entrepreneurs. This is powered by the fintech revolution.
As you can see, fintech covers a multitude of different financial services and it has been hugely influential in transforming the way we interact with money.