The finance world has been changing. Over the last few years, institutions and service providers have been constantly changing. One common topic is “fintech”. But, what is fintech?
If you want to learn more about the changing world of finance and the role of fintech, this article is for you. We will provide valuable information about this new model and guide you to understand fintech.
What is fintech?
Decades ago, you’d have to visit a bank or a financial service provider to do anything: from getting a loan or opening an account to just getting a credit card statement. However, things changed in the past few years. Now, most services can be done from anywhere, including the comfort of your home.
This change is happening as part of a larger movement in modernizing services and making them accessible to more people. This is the intent behind many companies that offer financial services at your fingertips: fintech companies.
So what is fintech exactly? The word “fintech” is an abbreviation of “financial technology”, a term used to describe any technology that offers financial services. They range from online banking to payment apps, online loan providers, mobile wallets, digital investment brokers, cryptocurrency, and much more.
Fintech encompasses many technologies and services with the common goal of making them more accessible and connected, changing the way consumers and businesses relate to finance and the traditional market.
History of fintech
Fintech has been around for decades, even if the name wasn’t used until recently. Using technology to facilitate financial services is a concept that has been around for a long time. What changes now is how accessible they are to everyday people.
The introduction of fintech as a larger concept dates back to the 1950s, with the introduction of credit cards and ATMs in traditional banking institutions. Online banking, for instance, has been a part of financial institutions for a long time, even if it has become accessible to most people only more recently.
The term “fintech” was coined in the early 1990s refering to new technologies that improved financial processes. It goes along with the technology boom of the same period, with the popularization of the Internet and personal tech devices, such as personal computers.
Fintech only became a household name in the last decade with the boom of unicorn startups (valued at more than $1 billion) in the finance segment, ranging from digital banking to cryptocurrency and back.
Growth of the fintech market
The fintech market grew over the past few years: there are at least 10,755 fintech startups in North America, Central America, and South America. Europe, the Middle East, and Africa concentrate 9,323 companies, while the Asia Pacific region has 6,268 fintech startups.
This growth is translated into more opportunities for smaller companies, like most startups, to compete in a segment dominated by large banks and traditional institutions.
Since these new companies are more in contact with the everyday consumer, they can offer services targeted at their specific needs. It’s a movement towards more tailored solutions and less of a “one size fits all” mentality. This makes these new companies more adaptable to an ever-changing market.
At the same time, more niche companies can function with smaller operations. When compared to traditional banks, they can often offer lower prices and more competitive conditions.
Services offered by fintechs
Fintech services range from the most basic banking services, such as digital credit cards, digital checking accounts, payment methods, online loans, mortgages, digital wallets, day trading, cryptocurrency, and more. Even traditional banking institutions are becoming more digital to accommodate this new trend.
Many fintech startups offer a range of different services in the finance segment. One of them is OneBlinc, a financial agency that offers loans, salary advance, checking account, and Toolbox to help you better manage your finances.
Advantages of fintech
Just as important as having the answer to the question “what is fintech?”, is understanding the advantages brought by this revolution. The main advantage of fintech is exactly what’s revolutionizing the finance market: its ability to make a range of services more accessible, faster, decentralized, and more efficient.
When signing up for a fintech company service, you can have the necessary tools to manage your finances at your fingertip, on your phone, or computer, no matter where you are. It’s a way to make services easier, more accessible to every user.
Get into the world of fintech!
OneBlinc is a fintech company created to provide fair and affordable credit solutions for people that work hard but need some extra help to get their finances in order until the next paycheck. We offer accessible loans with competitive rates, which we believe to be a true alternative to the vicious cycle of predatory lending.
At OneBlinc, you’ll find a team of experts dedicated to helping you find the best tools and solutions for your financial needs. Come to OneBlinc!
Unexpected things happen more often than we would like them to. That’s why OneBlinc is here to help, whether you have an emergency or just need that extra cash to go through the end of the month. We believe in people, and we understand that everyone might need money someday, somehow.