Fintech, short for financial technologies, is a term for companies that bring together finance and technology in order to provide easy and fast financial services.
The number of fintech companies operating with agile methods is growing rapidly both in Turkey and around the world. Technological developments have had one of their biggest impacts on the finance sector. This is causing the finance sector to be reshaped and creating new opportunities. These new opportunities give fintechs the chance to move into areas that large players have not been able to focus on as much.
So what do fintechs do?
- They launch digital products in the banking sector with personalized solutions.
- They focus more on customer experience and offer more technological and innovative products and services.
- They provide a competitive price advantage.
- They offer alternative services in the finance sector.
- They also reach people outside the financial system and offer them alternative products (the unbanked).
In which areas do fintechs emerge?
Fintechs operate mostly in the field of payment systems. Besides this, they provide services in lending, personal finance, retail and institutional investments, crowdfunding, asset management, and money transfer.
What kind of solutions do fintech companies offer?
- Mobile and digital payments
- Bitcoin and cryptocurrencies
- Money markets and investment
- Banking and corporate finance
- Big Data and analytics
- Financial platforms
- Peer-to-peer lending and crowdfunding
- Personal financial management
- Blockchain technology
What value do fintechs add to their users' lives?
- Convenience: Fintechs deliver their solutions to users in digital environments. This naturally adds convenience and speed to users' lives.
- Price Advantage: Fintech companies don't need to spend money on branch networks and similar physical infrastructure. For this reason, fintechs have a price advantage over traditional financial services in many respects.
- More Service Options: Because fintechs can serve customers regardless of their location, the range of services they offer is wider than that of traditional financial services.
- A Personalized Experience: The technological capabilities fintechs have allow these companies to gather more information about their customers through various channels and use that information effectively. For this reason, fintech companies can offer their customers a more personalized service.
