It is the conjunction of two words: financial technology. This term is used to designate companies that focus on specific and intelligent methods, that seek to make their financial services more efficient for their users, by incorporating innovative and attractive technologies and applications.
They can include types of payment services, different financial services, transactions, and cryptocurrencies. In the financial technology sector, emerging companies are the most common companies since these new companies can challenge the traditional system and be disruptive in the market by offering new services and software that will surprise customers and their competition.
An example of the constant growth of this technology is mobile payments. Using the smartphone to buy products is almost naturalized today. Mobile banking services are more secure and reliable, thanks to out-of-the-box applications. As the consumer becomes more familiar and comfortable, the new system begins to forces merchants, consumers and the financial industry to adapt.
Although fintech companies are trending right now, they are not expected to oust traditional banks, far from it. Rather, they will be considered as complementary to the system, offering up-to-date support to the traditional activities and practices of banks and offering more options and services for clients. However, specialists recognize three main ways in which financial technology will change the market:
reducing costs and improving the quality of financial services, evaluating risk and diversifying and stabilizing the credit landscape.
