FINTECH: Innovation in financial services

Fintech is an English term composed of the first syllable of the words Finance and Technology, that is, it is a word that arises from the union of two and that brings together all those financial services companies that use the latest technology to offer products and innovative financial services.

The Fintech are growing exponentially and will change traditional finances. Its size at present is very small and it does not concern the Banks now, but in the next 2 years it is expected that they will manage to move billions of dollars in Europe, the United States and the United Kingdom. Fintech companies are growing so fast due to the great crisis that followed the fall of the Lehman Brothers investment bank and the operation of traditional banking.

Fintech companies are engaged in intermediating in the world of finance in many aspects, in money transfers, in loans, in purchases and sales of securities or in financial and investment advice, to name a few areas in the that multiple Fintech companies are appearing.

The Fintech began very slowly taking into account the distance of investors for what happened with Lehman Brothers, but as new legal regulations are approved and the investor sees that they are trustworthy companies, little by little that fear has been lost and now the intermediation in finance through Fintech companies is multiplying, year after year.

Above all, it is due to the birth of new technologies or internet platforms that are allowing the user a better control of their money and their investments, thanks to ICT (Information and Communication Technologies) the financial world is being transformed, since from a simple smartphone we can control all our finances in a faster, agile, safe, simple and, above all, much more economical way.

The Fintech companies are venturing into businesses that the banks had monopolized and where the businesses were distributed among very few. Many Banks have fallen asleep on their laurels and now Fintech companies are stealing the return with attractive business models for investors.

I am sure that in the future there will be fewer banking offices and that will be due to the development of Fintech companies, which will offer the same services but online. The new generations are already adapting and adapting to work in this way and it is only a matter of time before this new way of doing and acting moves to the world of traditional finance.

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Fintech are companies that mediate in all areas of finance acting as payment mediators or brokers, as issuers and receivers of transfers or as financial advisers. Let's see what types of Fintech companies exist:

Transfer of funds: Before the banks had a monopoly and therefore charge large commissions for transferring money, now there have been many companies that make transfers at very low prices.

Payments and collections through mobile (smartphone): There are a lot of Fintech companies that allow you to use your mobile or tablet to make payments and purchases, they are leaders in this sector and they keep growing the number of stores and platforms that allow you to Use this agile and innovative means of payment.

Financing of individuals and companies: Here we have, for example, Crowdlending companies that are companies that contact small investors with applicants for funding through their website and accompany them, analyze, advise, help them Make your investment decisions and you are responsible for collecting the fees from the lender and for investing the investor interest and the principal of the loans in which he invests.

Financial and investment advice: Formerly banks also controlled this sector of advice, but as a result of the emergence of the Internet and the development of new communication technologies, Fintech companies have appeared that have been occupying this sector of advice and now There are many investors who come to them before making their investments to be well advised.


In 2018, mobile payments will generate $ 930 billion dollars (USD) worldwide, and the figure will exceed one trillion in 2019 according to figures from TrendForce and NFCWorld. With the adoption of the mobile for payments, investors see banking as fully mobile. In the United States, the number of mobile banking users has already surpassed half of the adult population with a smartphone.

In China, a recent analysis by Forrester concluded that "the most successful banks share a similar and iterative approach to mobile banking". All have built strong relationships between their digital business strategy and their technology management teams creating systems, applications or platforms generate more benefits for banks.

Mobile banking will continue to advance over traditional banking because of its digital experience, as a user and as a customer they get richer and start from a more informed base. It is the conclusion of Kirk D. Borne, Principal Data Scientist at Booz Allen Hamilton. "This will include frictionless digital band between consumers and businesses, consumer-to-consumer click-through payments, new opportunities for cryptocurrencies, biometric records that avoid passwords, interfaces, conversations, and localized offers and services."

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