'Finance and technology'. These are the terms behind the word ' fintech ', a name given to activities that involve the use of technology and innovation to provide services and design financial products . Do you want to know more about what is behind the term ' financial technology ' and how it is revolutionising the world of finance and economics?
Virtually no one is surprised anymore by the existence of financial institutions that operate solely and exclusively through the Internet, with sophisticated applications and without physical offices. What is behind these businesses that represent so much of the economy of the 21st century? The answer lies in the so-called financial technology , commonly known as fintech , companies that are dedicated to the creation of products and the provision of financial services that rely on innovation and new technologies as the basis for their configuration and operation.
Today, the fintech ecosystem has thousands of companies spread across the world and Spain is a key player in this. In fact, a recent report – FinTech Global Vision by Finnovating – considers that it is the third European country – sixth internationally – with the highest number of active companies of this type.
What is financial technology?
The National Securities Market Commission (CNMV) has published jamaica whatsapp data a special report that addresses the different aspects that come together in fintech . Firstly, we must discuss what financial technology is , which deals with the application of innovation and new technologies in the field of economics and finance. Specifically, it is the formula used today by financial entities, both existing ones and others that have been emerging and giving rise to the fintech ecosystem we referred to above.
The hallmarks of the fintech world are these:
Innovation in products and services in the economic and financial sector.
Improve user experience.
Advantages over the previous system, such as flexibility and mobility.
Types of fintech
The field of financial technology is broad and dynamic. Today there are several types of fintech depending on the products and/or services provided by the firms operating in the sector:
Personal finances . To manage the consumer's finances, which can be self-managed, to know the status of their accounts at any time, to access different financial products that may interest them and to compare existing options.
Asset management and advice : platforms that provide advice on managing client capital, applications that connect supply and demand, investors and asset owners, among others.
Alternative financing : from online loans for SMEs and individuals that are managed immediately to participatory financing formulas – crowdfunding, crowd lending, crowd equity.
Payment services via the Internet , either through mobile devices or other types of electronic systems.
Digital/virtual user identification . Refers to companies that generate remote authentication systems for people, using methods such as fingerprint or facial identification.
Big Data . Data analysis and the management of the information obtained from it is the main activity of manyfintech companiesthat are making the most of the presence of companies and users on the Internet and networks.
Cryptoassets . Anothertype of fintechthat will be the most talked about, referring to the representation of assets in digital format. Cryptocurrencies are the best example of this, being used as a means of payment in certain transactions and about which, at least for the moment, there are as many lights as shadows.
With the growth and expansion of this ecosystem, theSpecialized Financial Programsare designed to prepare professionals with key tools and ensure their competitiveness in a rapidly changing sector. These programs offer practical training based on real cases, taught by experts in the financial and technological sector.
Advantages of fintech
Financial technology is here to stay. It is generating numerous advantages for both individuals and companies. In relation to these, there are a series of benefits that come from using fintech at a corporate level:
Automation of administrative and financial procedures via the Internet.
Security when managing business finances.
Facilitates access to alternative sources of financing and special investment opportunities.
Optimization of deadlines and systems management, streamlining processes and boosting business.
Reduction in costs for financial management. Fintech companies have lower and even fewer fees than conventional banks and financial intermediaries.
This is at a business level, as we have pointed out. For users and individuals, there are also a number of advantages of fintech to take into account:
Personalized attention, with products and services that adapt to the needs and possibilities of the consumer.
Speed and convenience in management, with just a click, without leaving home and without requiring any additional documentation other than what the operator has at the banking level.
Security in operations. This is a great point in their favor and it is important to make it known to the general public, since fintechs focus on cybersecurity to guarantee the security of transactions.
Lower commissions.
Transparency in operations, with 24-hour customer service for unforeseen events and to clarify possible contingencies.