What Is FinTech (Financial Technology)

Basically, Fintech can be explained as the combination of the words “finance” and “technology”. It is used to describe new technology that aims to streamline, digitize and automate traditional financial services. Although it was seen as the realization of financial services with technology when it first emerged, it has gained greater importance with the various developments taking place today. FinTech is used to help both businesses and consumers manage their financial operations processes faster and better by using proprietary software and algorithms. FinTech, which has a wide range of services such as mobile banking, insurance, crypto money, virtual reality, covers a rapidly growing and developing industry.

FinTech companies integrate their technologies (artificial intelligence, data science, blockchain, etc.) into traditional finance industries to make them safer, faster and more efficient. Finance is one of the rapidly growing and developing sectors, with companies innovating in almost every field of finance.
There are many advantages that FinTech can provide. These advantages include:
● Fintech applications increase business efficiency thanks to practical workflow,
● Easy accessibility and time saving,
● To offer a flexible structure that can be operated independently of location,
● Regularly improving the user experience on the Services,
● To provide transparent management and business processes provided by technology,
● Providing more advantageous prices compared to traditional solutions,
● Facilitate the easy analysis of data and the generation of optimal solutions,
● Fast and automated business processes to help determine business strategies for future periods

What Are Examples of Fintech (Financial Technology) ?

Initially, Fintech was recognized by technologies applied to the internal systems structures of banks or other financial institutions, but more recently the term has encompassed a number of other more consumer-oriented applications. For example, with this type of technology it is possible to manage funds, trade stocks, pay for food or manage insurance transactions. Some fintech businesses allow you to accept payments through a variety of methods, either through a POS terminal or entirely online. The tools provided by Fintech change the way many consumers track and make it easier for them to manage their finances.
Today, there are many common examples of financial technology applications. Some popular examples are as follows:

● Blockchain and Cryptocurrency
Cryptocurrency and blockchain are different things, but they are also inextricably linked in the fintech industry. Cryptocurrency is a digital currency that has no physical form and only exists digitally. Blockchain is an electronic ledger that allows users to record every transaction made via cryptocurrency. Since there is no physical version of money and transactions occur digitally (i.e. no paper money or coin exchange), it is fairly easy to explain why cryptocurrency is so attractive to users. However, the lack of physical money also opens up opportunities for fraudulent activities, which is where blockchain comes from. Blockchain allows users to track every transaction made with cryptocurrency. It works like a Google Docs spreadsheet where only those who have been granted access can make changes to what is written in the document. In this case, the “document” is a public ledger of all transactions made with the currency.
Each new transaction is recorded as a new row on the spreadsheet; so if you’ve ever been on a group project where you’ve all worked on an online spreadsheet together, you can understand how it works.
● Mobile Wallets
Mobile wallets and payment apps are two of the most common types of fintech. Popular examples like PayPal, Venmo, Apple Pay, and Google Pay allow users to send money to each other and retailers to accept customer payments.
● Crowdfunding Platforms
Crowdfunding sites like Kickstarter and GoFundMe challenge traditional sources of funding by allowing consumers to invest in businesses, products, and individuals.
● Stock Trading Practices
Stock trading apps like Robinhood and Acorns are well-known and creative examples of fintech. Instead of visiting a stockbroker, investors can trade stocks from anywhere using their mobile device. As technology evolves in the 21st century with advances in data use and artificial intelligence, the future possibilities for fintech are exciting. Access and use of financial services will become easier as they are better adapted for everyday use.
● Mobile Banking and Neo Banks
Mobile banking is one of the most popular applications of fintech. More and more people do their banking online or through mobile apps. Another application of fintech is neobanks. Neobanks are small banks without physical locations; they only work online. They often offer better interest rates on savings accounts than traditional banks.
● Insurance
Fintech is not just limited to financial institutions or the banking industry, it has also made a huge impact in the insurance industry. More and more fintech companies collaborate with insurance companies to streamline procedures and allow them to focus on other interesting aspects.
● Budgeting
Keeping track of finances is important for everyone, but before new technology came into play, it wasn’t a practice for many people. In the past, you had to create your own budgets, which included collecting checks and bank statements and navigating spreadsheets. Fintech services like Mint and TruBill have made it possible for consumers to track their income, monthly payments, expenses and more with their mobile devices.
● Credit Reporting and Monitoring
It is important to know and monitor your credit score before doing any business, buying a house or a car. That’s why some fintech apps allow consumers to closely monitor their credit scores with monthly updates. Thus, you can monitor your credit score regularly.

What Is The Purpose of Fintech?

We can say that the main purpose of Fintech is to provide efficient, fast, practical and secure financial solutions by using technology. With the technologies developed by fintech companies, individual users can receive personalized services for themselves. To explain briefly; With FinTech, which aims to ensure that financial transactions are carried out in a much faster and more practical way, it is possible to perform dozens of different banking transactions in seconds without going to a branch. Thus, the life of the customers becomes easier and the workload of the staff is lightened.

What Are Fintech Companies?

Fintech companies are currently in a period of strong growth and development. At the same time, the Fintech industry is expected to be worth $332.5 billion by 2028. This presents a unique opportunity for those wishing to enter this field as there is a growing demand for Fintech talent around the world.
Some of the best examples of fintech companies are: Stripe, Square, Wealthfront, Robinhood, Coinbase and Affirm. These Fintech start-ups offer a range of exciting opportunities in areas such as engineering, product management, data science, operations and marketing. Whether you’re joining a fintech startup or interested in exploring fintech careers at larger companies like Goldman Sachs, JPMorgan Chase or Citigroup, there are many interesting careers to explore in this fast-growing industry.

How Does FinTech (Financial Technology) Make Money?

It is possible to say that Fintech makes money through many different ways. Fintech’s methods often bring a more modern and innovative approach to traditional financial business models. Fintech business models offer extended financial access and talent management. In this way, it becomes attractive to consumers and reveals new experiences.

How Does Fintech Work?

FinTech initiatives lead to fundamental changes in the functioning model of the financial world with solutions that enable services and processes in finance and banking to be carried out with low cost and high efficiency. At the point reached today, it is seen that FinTech initiatives that reorganize the relationship and communication between customers and financial institutions have started to have a say in the sector by gaining strength against banks in money transfers and different financial transactions between customers. The reasons behind the success of these institutions and organizations operating in the financial markets are that these institutions and organizations are more accessible and offer more attractive offers and solutions.
FinTech initiatives lead to fundamental changes in the functioning model of the financial world with solutions that enable services and processes in finance and banking to be carried out with low cost and high efficiency. At the point reached today, it is seen that FinTech initiatives that reorganize the relationship and communication between customers and financial institutions have started to have a say in the sector by gaining strength against banks in money transfers and different financial transactions between customers. The reasons behind the success of these institutions and organizations operating in the financial markets are that these institutions and organizations are more accessible and offer more attractive offers and solutions.

What Does Fintech Hold For The Future?

It is predicted that the future of financial technology will be based on machine learning and artificial intelligence-based technologies. Thanks to a financial technology service in which a data-driven artificial intelligence system is integrated, it will enable both the institution and the users to carry out a more accurate and easier decision process for a financial transaction.
Thanks to the services in which chatbots, which are being used more and more by institutions today, are integrated with artificial intelligence in the future, great contributions can be made to customer support. In the future of this financial technology, it will be possible to provide more personalized support that can identify customer data instead of a conditional software service.