Types of Fintech Market
1. Digital Lending and Credit: Digital Lending is a process that allows you to raise money quickly by crowdfunding where you can raise money from people all over the world. Here customer doesn’t need to apply to banks or credit unions to get a loan.
2. Online Banking: Innovative Technology includes chatbots, voice, and phone biometrics and Artificial Intelligence provided by Atom Bank. The Company likes Moven provides its customer digital banking services that allow using of digital bank accounts.
- Mobile Banking: Lets their customers know financial information, monitor their account balance, list of various transactions.
- Mobile Payment: Facilitates its consumers to make their bill payments via their mobile devices just having an internet connection. Fintech also facilitates to pay their bills globally. Without visiting Banks physically, one can open their account, can send and receive money. Now people prefer mobile wallets to credit cards.
3. Insurance: Insurtech (Insurance Technology) Companies use Mobility Software, Data Science, IoT and others to provide digital services. Insurtech obtained data through connected devices or sensor allow providing personalized data, dynamic pricing, and recommendations. BIMA and Metromile are Insurtech solutions.
4. International Money Transfer: In comparison to the traditional transfer of money, now Fintech helps to transfer money faster and less expensive globally.
5. Personal Finance: Now people no longer need to go to the traditional banks to get personal finance advice. Currently, Fintech provides its customers with lots of software that assists them in advising for budgeting. Companies like Mint, CompareAsiaGroup allows their customers to create budgets and provide reliable information about how to save money or create a saving plan and manage their personal finance.
6. Equity Financing: Traditionally, equity financing was used to raise money by selling their stock to shareholders of the company and the shareholder receives an ownership interest in their company. Now Fintech companies are transforming it by making it easy to raise money. It connects accredited investors with vetted startups.
7. Online Trading: A market where financial securities (like equity, debentures, bonds, etc.), commodities are bought and sold. Fintech helps investors to purchase and sell their securities online via an internet connection through mobile devices or laptops. Hedgeable and Addepar are examples of Investment software.
List of Major Technologies Involved in the Fintech Sector
1. Blockchain: Blockchain consists of two words, “Block” which means digital information, and the other, “Chain” which means public database. So, Blockchain refers to storing digital information in public databases. It is just a chain of blocks. Blocks store information about transactions, time, date, and dollar amount of your purchase and also the information about who is participating in that transaction & their name. Blocks store information that is distinguished from other blocks in a chain. Each block stores a unique code called hash so that we can tell it apart from other blocks. As a result, Blockchain records the transactions between two parties that is known as a distributed ledger in a permanent and verifiable way.
2. Robo-Advisers: Robo advisors provide digital financial advice based on algorithms or mathematical rules. Robo advisors help you to manage your portfolio and save your time & cost by providing low-cost financial advice.
3. Crowdfunding: It means funding a venture or a project by raising a small amount of money from a large number of people via the internet.
4. P2P Lending: P2P Lending refers to peer to peer lending where the money is lending to people or businesses through online services that match borrowers with lenders. In comparison to traditional banks, now people can get a loan directly from other people via the internet.
5. Regtech: It refers to regulatory technology. It is the management of the regulatory process (monitoring, compliances, reporting) within the financial industry by technology.
