Fintech

Fintech is used to refer to companies, products, and services that simplify and transform financial services. The existence of these companies is made possible by technical changes, the fast and ubiquitous internet, and the smartphones we hold in our hands.

Fintech is an extremely broad term. The word composition was formed from the terms financial and technology, and as can be inferred from this, this is the collective concept of all the innovations that aim at the technological development of finance. The term is used both for the companies that appear in the markets with such innovations and for the services of these companies. This world is very diverse and new elements are added almost every day.

Some fintech companies are developing solutions that are useful for banks. These solutions can be aimed at analyzing customer data (big data) or say artificial intelligence for the application of credit evaluation when performing. 

Solutions that help banks to comply with official regulations, data provision or data management requirements form a separate caste. Companies developing such solutions RegTech we call it companies. These fintechs also basically work in cooperation with banks, but users also benefit from their activities, for example due to the accelerated credit evaluation .

Another group of fintech companies are developing solutions that are already fiercely competitive with banks. Banking is a slowly changing, highly regulated activity, while fintechs are companies whose hands are not tied by the regulations applicable to banks. That is why many fintechs are trying to make banking services big card companies lower its fees, say by developing a payment or transfer system independent of banks and card companies. 

In addition, there are fintech companies and solutions that aim to simplify, control, and make financial transactions more transparent. These make it possible, for example, to pay by phone, to use the card that deducts the smallest commission in all our transactions, or simply keep a record and show our expenses organized at the end of the month so that we know what should be saved. 

Banks are not only looking for fintech companies that are with them, but also those that appear to be working against them. It is clear that the digitizing the world is moving towards a drastic simplification of banking, and banks do not want to be left out of this, because if they did so, they would lose their customers. However, banking is a fundamentally conservative, security-seeking genre (and this is also the regulatory environment), so they cannot be expected to develop the latest innovative solutions, so they prefer to acquire those who do. 

Therefore, not only the banks, but often also the states, are happy to see that small but highly innovative companies want to connect to the financial institution system with newer and newer solutions. In more and more regions of the developed world, the conditions and manner in which traditional banks must share data with fintech companies are already being regulated. 

Regulatory actions and rapid technological development are a strong tailwind for the expansion of the sector. Both the number of market participants and the capital accumulated here are growing at an amazing pace. Today, we cannot talk about many small companies, but many companies with significant capital also operate in the sector. Some of them also have a banking license, these are the neobanks.

Subversive fintech companies are also conquering more and more areas of financial services. These are, for example, in the insurance market insurtech businesses and services. During the coronavirus epidemic, they mushroomed capital market also active fintechs. Finally, don't forget the cryptocurrencies about his universe and that about NFT nor, which is also an innovation of this sector.