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Financial technology is a term used to describe the technology in the financial services industry. The industry has undergone rapid changes, with new companies and products emerging regularly. Financial technology companies have several products and services they offer: payments, lending, wealth management, insurance, blockchain, and crypto-assets. This article will provide an overview of each category.
Financial technology companies are changing the payments industry by offering new and faster ways to send and receive money. Some of the most popular payment methods include mobile payments, peer-to-peer payments, and in-app payments.
Mobile payments allow customers to make purchases with their smartphones by scanning a QR code or tapping their phones against a payment terminal. Peer-to-peer payments enable customers to send money to each other without going through a bank. In-app payments would allow customers to make purchases within mobile apps.
The companies also impact the lending industry by offering new and faster ways to borrow money. Some of the most popular lending methods include online loans, peer-to-peer loans, and invoice financing.
Online loans are loans that are approved and funded online. Peer-to-peer loans are funded by individual borrowers rather than by banks. Invoice financing allows businesses or companies to get funding against unpaid invoices.
3. Wealth Management
Financial technology companies are also changing the wealth management industry by offering new and faster ways to manage their money. Some of the most popular wealth management methods include Robo-advisors, online investment platforms, and social trading.
Robo-advisors are digital financial advisors that provide automated investment advice. Online investment platforms allow customers to invest their money online. Social trading will enable customers to copy the trades of other traders.
Companies also impact the insurance industry by offering new and faster ways to buy insurance. Some of the most popular insurance products include car insurance, health insurance, and pet insurance.
Car insurance is a type of insurance that covers the cost of repairing or replacing a car if it is damaged or stolen. On the other hand, health insurance covers medical expenses, while pet insurance covers the cost of veterinary fees.
Companies are also changing the blockchain industry by offering new and faster ways to use blockchain technology. Some of the most popular blockchain products include decentralized exchanges, digital wallets, and blockchain-based identity systems.
Digital wallets, such as a bitcoin wallet, are wallets that store cryptocurrencies. Decentralized exchanges allow customers to trade cryptocurrencies without trusting a third party. Blockchain-based identity systems are systems that use blockchain technology to verify the identity of users.
6. Crypto assets
FinTech companies are disrupting the crypto assets industry by offering new and faster ways to buy and sell crypto assets. Some of the most popular crypto asset products include digital currencies, tokenized assets, and stablecoins.
Digital currencies are cryptocurrencies incorporated to purchase goods and services. On the other hand, tokenized assets are assets that individuals can trade on blockchain technology. Stablecoins are cryptocurrencies that financial technology companies develop to maintain a stable value.
In conclusion, financial technology companies offer their customers a wide range of products and services. Some of these include payments, personal finance, investing, and banking. Financial technology has revolutionized the way individuals interact with money, and it is only going to continue to grow in popularity. As more people become comfortable using financial technology products and services, the industry will only continue to expand.
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