What is fintech?
The term ‘Fintech’ is coined from finance and technology. The term refers to the inter-relation between these two areas of business, which are intrinsically related because of the ways in which technology is changing financial practices. Fin-tech companies are disrupting the traditional financial industry by using information and communications technologies to provide new solutions, such as mobile payments, crowdfunding or peer-to-peer lending.
What do fintech companies do?
Fintech companies provide services and products that use modern technology and data analysis to meet the financial needs of a wide range of customers. These companies offer various services such as personal investing, banking, loans, insurance and wealth management.
Just like traditional banks, fintech companies provide credit cards, mortgages and other loans. However, they also offer more sophisticated products such as trade brokerage accounts, business financing and international money transfers.
Today, fintech is helping all sorts of companies, business owners and end consumers to effectively manage their financial operations, processes and even lives by utilizing specialized software and algorithms
Why is fintech important?
Fintech made financial services easily accessible for everyone, fintech services also include revolutionary financial technologies like blockchain and cryptocurrency. People can easily transfer money and invest their savings by using financial technology.
This innovation has transformed the banking business by providing smart services, better customer connectivity and a host of other value-added services. The Fintech industry is ruling the world and the financial sector and it is important to adopt the technologies which are transforming the financial sector.
How do fintech companies earn?
Fintechs earn money through subscriptions and advertising. Most fintech companies are at earlier stages in the business so these companies are focusing on growth rather than being profitable.
The fintech industry has helped solve many problems, made our present easy, and is already shaping our future. This is the second-highest funded industry in India. Financial technology is generally more lenient and flexible than banks. Our country has the highest number of fintech adopters in the world at 87% compared to the global adoption of 64% because of the pandemic. India has more than 6000 fintech startups and this industry is here to stay.