Fintech encompasses a broad range of tools, systems and ideas that use technology to streamline or transform financial processes and products. Some examples are robo-advisors, payment apps, peer-to-peer lending platforms, crypto apps and insurtech (technology applied to the insurance industry).
In the early days of fintech, it was mostly behind-the-scenes systems at banks and other financial institutions. Today, it’s becoming more consumer-oriented and has expanded to include online shopping, fundraising, charitable giving and even credit scores.
Many of the most buzzed about fintech companies aim to challenge and eventually take over established financial services providers by offering a more streamlined service with lower costs. For example, Affirm cuts credit card companies out of the equation for online purchases by allowing shoppers to secure instant loans.
New technologies, such as blockchain, are also transforming the financial world by compressing asset transfer and money transfers into seconds instead of days. This will allow people to complete transactions without having to visit an office or wait in line.
While some traditional financial services companies have been slow to adopt the latest fintech innovations, others have embraced these solutions to improve their own operations. For example, banks and credit unions are collaborating with fintech firms to offer digital banking products and services to consumers. This includes online, mobile and automated deposit and withdrawal systems. These collaborations also include a range of other products and features such as online bill pay, mobile wallets, mobile check cashing and remote deposit. https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/