Frequently Asked Questions

What Does Fintech Mean?

Fintech is an abbreviation of the term financial technology. Fintech describes the technologies and innovations that have been designed to compete with the traditional financial services industry. This industry has emerged in recent years with the aim of improving financial activities with the use of technology.

Fintech companies provide financial services through software and technology; therefore, broadly speaking, the term can be applied to any company that uses mobile devices, the internet, software technology or cloud services to enable financial transactions or services.

At its inception, the term Fintech described the back-end technology and systems that enabled banks and financial institutions to operate. However, over time Fintech has expanded into a number of other applications, particularly those that are more customer-focused.

What Are Some Examples of Fintech in Everyday Life?

There are many everyday uses of Fintech, and it is behind some of the world’s best-known companies (such as PayPal). Using a smartphone to access mobile banking services and using cryptocurrency are amongst the many other common examples of Fintech in our everyday lives.

Crowdfunding platforms are another aspect of Fintech, with companies such as Kickstarter and GoFundMe using technology to circumvent traditional banking. Rather than going to a bank for a loan, individuals can communicate directly with potential investors, pooling funding from a large number of different sources into one pot.

Mobile payments all utilise Fintech, and the global mobile payment market is set to surpass more than $1 trillion in 2019. The insurance industry has also been affected by innovations from Fintech, and there are a number of asset management and stock trading apps that also use Fintech to improve efficiency and lower costs.

What Are the Latest Developments in Fintech for 2020?

Regulation will continue to dominate the finance and banking landscape of 2020. For banks to address the numerous regulatory challenges ahead, they must implement a more flexible and robust digital strategy. Efforts must be continued to become modular; to increase focus on operational and financial resilience; to respond to social and political pressures in areas such as financial inclusion, sustainability and the environment; and to enable digital transformation across the entire business ecosystem.

In 2020, we can expect Fintech services to make use of cloud-powered technologies like artificial intelligence, blockchain, machine learning, analytics and big data to continue the disruption of the industry.