Fintech is a term used to describe companies that use technology to enhance traditional financial services. These companies can offer a wide range of products and services, from mobile banking apps to online lending platforms. Fintech also refers to the underlying infrastructure that makes the delivery of these digital financial services possible.
Fintech is composed of two words in English, “financial” and “technology,” which refers to the use of technology to improve the efficiency and quality of financial services. Fintech companies use advanced technologies such as artificial intelligence, process automation and machine learning to offer innovative financial services through digital platforms.
Fintech companies emerged due to the need for greater accessibility and convenience in accessing financial services. In the past, accessing financial services was a slow and complicated process that often involved visiting a bank branch and filling out lengthy forms. This was not only inefficient, but also excluded many people who did not have access to a nearby bank branch or who did not meet the credit requirements for accessing financial services.
With the advent of technology, the financial industry began to change. Fintech companies began to use emerging technologies to offer more accessible and convenient financial services through mobile apps and websites. These fintech companies were able to leverage technology to reduce costs and offer more personalized and efficient services.
In addition, the traditional financial industry was often characterized by a lack of innovation and slowness to adopt new technologies. Fintech companies entered the market as an attractive alternative for consumers looking for a change and for investors seeking investment opportunities in an evolving market.
Services offered by fintech companies include digital payments, lending, wealth management, investments and financial advice. Customers can access these services through digital platforms, either from their computer or from their cell phone.
In short, fintech is a term that refers to the use of technology to offer innovative financial services. Fintech companies use advanced technologies to improve the efficiency and quality of financial services, and offer more accessible and personalized financial solutions.