What is Fintech?

What is Fintech?

Some small and medium start-ups are bringing a host of financial services taking use of the latest technology. This is getting a strong response from the smartphone-savvy and internet-savvy people. The banks and financial institutions have been facing some ups and downs, but all figures indicate that these start-ups are becoming a significant player in our lives.
These financial services have been named Fintech.
The mobile device and the internet have brought incomparable convenience to our lives. We can perform all types of bank transactions through mobiles. Banks have been giving us best services but, the customers want them easily and fast. That is why fintech is on the winning note.

Advantages and Disadvantages of Fintech:

Advantages for fintech can also turn out to be challenges. It all depends on the situation.

  • Smaller management teams take fast decisions and execute it faster.
  • A smaller team may mean limited skills and smaller budget also.
  • Smaller setups do not tend to follow all the credit lending processes normally followed by bigger financial institutions, and this makes them an attractive option for their client base. However, they may face limited knowledge problem when they try to assess the creditworthiness of a customer.
  • Fintech companies are usually start-ups that are funded by venture capitalists. They may also interfere with their business operations.


The established banks are facing strong competition from fintech companies. Young and high-income people have been taking active interest in the offerings of fintech companies. It looks that big banks and financial institutions may be forced to work in partnership with fintech companies in future.
The fintech companies have made the world take notice of their strong presence. It is changing the way of financial transactions that are taking place around the world.


Established financial institutions have a strong grip on the entire financial system, but now the understanding about established banks and financial institutions have been changing. The people also have lost a lot of money and big banks have gained a lot. That is why people are looking at alternatives that offer transparency.
Fintech start-ups can grasp this huge opportunity but, they must first establish stability, financial solvency and sound business models to claim the faith of their target customers. Only time will tell how this industry will develop.

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