What is a Fintech and How Does This Business Model Work

Technology is increasingly present in all types of industries, including those of financial activity. An example of this is the emergence of fintechs, the business model that offers products and services from the financial sector allied to information and communication technology. Editor Rock Content Mar 11, 19 | 5 min read a bill with the letter f representing a fintech Fintechs are companies that combine the provision of financial services with processes based entirely on technology . They arise from the union between the financial and technological areas ( financial + technology = fintech ) and are promoting a true revolution in the financial market. The mission of these companies is to innovate, optimize and improve the services of the financial sector.

How did fintechs emerge?

Fintechs are showing that yes, it is possible. In addition to involving less bureaucracy , they have much lower operating costs than traditional banks Iran Phone Number and manage, through technology, to impose more efficiency and agility on processes. How did fintechs emerge? Fintechs are the result of two intersecting events: the international financial crisis of 2008 , when the traditional North American investment bank Lehman Brothers went bankrupt, and the trend towards total automation, an expression of the 4th Industrial Revolution . Why the 2008 crisis? Because after the bankruptcy of the Lehman Brothers Bank and the financial aid that the North American government had to give it.

What are the services offered by fintechs?

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The public sector of developed countries, in order to avoid new crises, created a series of regulations for the big banks, mainly those considered ” Too BJ Leads Big “. to Fail .” CONTENT RECOMMENDED BY THE EDITOR: After all, what is a startup? Meet the most successful Mexican startups of the moment Take a look at the startup scene in Colombia Lean Startup: A Valuable Methodology for Corporate Growth And the figures show that the financial market is resilient towards fintechs.

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