Fintech is a word that would seem very complicated, when in reality it simply means techno finance, or rather “Financial Technology “. In practice it is a series of financial products and services , which are provided through the most sophisticated financial technologies. The word Fintech is one of the most used today, within the New Economy. However, to understand its truest simplified, it is necessary to go beyond the simple definition.
The Financial Sector for you
Financial Technology, is essentially a new segment of the financial market, which is increasingly carving out the “finance pie”, gradually supplanting the various banking and insurance sectors. One of those innovations that is gradually bringing Fintech services to be used by more and more people, the most “palpable” revolution, could in fact be the replacement of cash in money transactions that are made every day. With FinTech Germany you can have the smartest supports now.
Investments in banking and insurance Startups continue to increase every year, and Europe has been one of those geographical areas where there has been more growth, London above all, which has real fintech accelerator hubs: Level39 and Startup BootcampFinTech in London.
The new figures of “innovating” finance are online platforms that deal with so-called “financial transactions”, but also with investments. These are new companies, with an extremely streamlined structure , born of ideas sewn to the needs of consumers, as the CEOs have succeeded in interpreting the needs of customers, investors and savers in an innovative way.
- To succeed in the Fintech world, you often need an innovative idea, which no one has had before. The human factor of the idea therefore counts very much.
- The people behind these great start-up ideas are certainly experts in finance and economics, but above all they are “digital” minds and with a great propensity for computing.
- The web, although it may seem a “cold” environment, is absolutely not so, as behind there are real genius minds , which in a few years, have invented all colors: e-payment, crowdfunding, social investing , P2P payment and many other forms of investment and financial activities, which some years ago were not known to anyone, only by a small circle of professionals.
These new players in the financial sector , therefore, succeed in establishing themselves in the sector thanks to the disruption of their technology, which is also combined with a great basic convenience, thus managing to respond to the needs of customers in an extremely simpler and more economical way, thus creating a extremely long-lasting customer-business relationship. Not to mention the fact that there is a large amount of tools for analyzing the results, projecting operations, ease of use and portability thanks to smartphone applications, which make everything more essential and quick and easy to use.
The members of Financial Technology , are companies that manage to innovate their business in no time, by investing in new internal divisions, new ideas, new services, which are implemented much faster within the services, beating therefore also “traditional” finance over time, and not only in terms of convenience.
What is Fintech Sector?
But what is simply the Fintech sector? Fintech is essentially the digitalization of various financial services . But what can Finance and Tech mean if they are constantly evolving? In the last 50 years, these two terms have indeed changed profoundly.