In recent years, the impact of technology on financial companies has grown significantly, to the point of revolutionizing the way in which users manage their finances. When we talk about Fintech we are referring to those companies that offer financial services such as transactions, payments, banking and online advice, as well as the development of different collective financing systems or market negotiation, etc., all through technological means.
These companies are customer-focused, offering accessible and easy-to-use digital services and products, in addition to the management of all types of financial assets. In this way, we can find everything from fully digital debit and credit accounts to loans whose management is carried out through the internet or investment platforms in virtual currencies, among others.
Its operation is based on trying to carry out all accounting, administration, banking and economic processes for people in a more practical and friendly way, all through tools such as mobile digital applications, web platforms and specialized software, among others. others.
Among its main characteristics we can highlight its commitment to financial innovation, by trying to offer more efficient and innovative solutions, in addition to an improvement in the user experience, prioritizing its comfort and ease of use, and a search for greater transparency in rates and costs.
On the other hand, it is worth highlighting its main advantages, where we have to highlight the time savings by not having to go to physical offices to carry out transactions, the simplification in access to banking services, and greater convenience as it is available both 4 hours a day, 365 days a year.
Types of financial technology
Fintechs can have different approaches and offer different solutions depending on their types of clients. Although there are a wide number of financial services that they can take care of, among which are the following:
Electronic payments and transfers: Within this category we find fintechs that focus on offering payment solutions over the internet, allowing transactions between consumers and stores safely, or that provide money transfer services, taking advantage of their operational in different markets to allow operations in record time and with lower rates.Robo-advisors: These are companies that manage automated investment platforms, in which the use of different algorithms is used to manage investment portfolios.Financing : Within this category we find services and businesses related to alternative financing, with platforms that connect borrowers with investors, or that offer personal loans. Participatory financing platforms are also part of it, such as crowd equity, crowdlending and crowdfunding. Personal finance: These are companies that focus on the management of personal finances of daily savings, with solutions to offer information on banking transactions, compare financial savings products, etc. Big Data: This type of Fintech takes advantage of analysis of large volumes of data to add value to the financial industry, to better analyze risks or to profile clients, among others. Others: In addition to those mentioned, we can find Fintech focused on the world of crypto assets, on client identification services or on advice and wealth management, among others.
How do Fintech work?
Although the operation of each Fintech depends on the approach that each of them gives it, all of them have as a common denominator the use of technology to streamline and improve the user experience when carrying out financial operations.
To achieve this, the use of online platforms, mobile applications and advanced algorithms is used to provide various services, such as investment management, loans, money transfers and electronic payments in a more efficient way than in traditional banks.
