An update on the Fintech market

Fintech is a combination of words, derived from “Financial and Technology”. Fintech usually referred wherever there is technology applied in financial services or used to assist businesses manage the financial aspects of their business. Essentially any technology that relates to money transactions such as online banking, money transfers, loans, fund raising and asset management.

What are the different types of Fintech?

Remittances & Payments

• Payments Gateways

  • Authorizes credit card or direct payments for offline and online businesses and individuals

• E-Wallets

  • An application that enables users store money and spend money from a smart handheld device or a computer – such as Paytm

  • A user has the ability to connect and link their bank account to top up their e-wallet

• Remittance tech

  • A service that facilitates cross-border money transfers between individuals

  • Tech companies are innovating to make remittances efficient and quicker at a fraction of the cost incurred by banks.

Digital Banks/Digital Wallets

• Similar to a normal bank, except just an online version. Provides chequing and saving accounts with the ability to deposit, transfer and withdraw money.

• Some example of Digital Wallets: Paypal, Masterpass, Apple wallet, Google Wallet

Blockchain & Cryptocurrencies

• Blockchain tech

  • The underlying technology upon which all crytocurrencies are based

  • A public ledger of online transaction, shared among different nodes on a network

• Cryptocurrencies

  • A form of digital money in which encryption regulates generation of currency units and verifies transfer of funds, operating independently of a central bank

Crowdfunding

• Donation-Based

  • Users find projects that they wish to donate money to

  • These projects are usually associated directly to charitable causes that the funders want to actively support

• Debt-Based

  • Individuals lend money to businesses or other individuals with the expectation that there will be interest accrued

• Equity-Based

  • Startups and entrepreneurs can find small investments from a large number of investors in exchange for a financial stake in their company

Insuretech

• Designed to assist customers save money by taking a more efficient approach

• Often explores opportunities that the key players might not, such as highly customized policies or using data from the customer’s devices to better comprehend their behaviour and offer reasonable premiums

Enterprise Tools & Software

• Software-as-a- Service (SaaS)

  • A business model in which the application is hosted by a service provide

  • Financial SaaS can be accessed from anywhere since it is cloud-based

• Cloud-Based Point of Sale (POS)

  • A type of system in which information for processing transactions is retrieved or accessed from the cloud or a cloud service

  • Wi-Fi connected smart devices to replace traditional cash registers, you can simply use an an iPad or any other smart device

  • Business owners can transact on the go and monitor a store’s activity and metrics in real time remotely