Fintech, also known as financial technology, refers to new and emerging technology that enhances and simplifies the usage of financial services—typically through smart devices and by startup organizations. Think about the last time you deposited a paper check using your mobile banking app, split a bill with a friend using a digital wallet, or tracked your monthly expenses online. These all fit within the fintech space. While many of these services are geared toward consumers, fintech also aids organizations and entrepreneurs who rely on these technologies to automate tasks, manage accounting needs, and provide better user experiences.
What are examples of fintech?
Fintech is all around us and a part of our everyday routines. Below are some common examples.
- Mobile banking: Managing your banking needs from mobile has only gotten more convenient, especially if you don’t live near a bank branch or need to take care of your finances on the go. You can now expect to see bank features like mobile check deposits, money exchanges, budgeting tools, bill pay scheduling, and virtual finance assistants.
- Payment apps: Platforms like these offer convenience when paying an individual or a business offering multiple or digital-only payment options.
- Investment apps: These services simplify buying and selling stocks and crypto, all from your mobile device.
- Budgeting platforms: If pen and paper aren’t for you when tracking your finances, enter budgeting platforms. While some may rely on Google Sheets, many free budgeting apps are also available and can even link to your bank and credit card accounts.
- Robo-advisors: These services or platforms manage an investment portfolio on your behalf, typically for a minimal cost, and are ideal for low-maintenance, hands-off investing.
The future of fintech
International adoption of fintech is only expected to increase. As of 2019, 75% of global consumers use a type of transfer payment service. More and more services are also becoming readily available, with the Americas leading the global market with the most fintech startups, at almost 11,000. To stay afloat in a space that can change overnight, it’s all the more imperative for financial services to prioritize customer empathy and offer an incomparable UX and CX.