When you hear the term “financial technology,” your first thought may be of blockchains and algorithmic trading. While those are key applications of fintech, the broad category encompasses a wide range of new technology use cases that streamline more traditional finance functions.
Banks and financial institutions are increasingly embracing fintech tools to meet the growing demand for digital finance products, services and experiences. They’re working with fintechs to develop streamlined accounting processes, improve fraud monitoring and expand their reach into new markets. They’re also using fintechs to offer better consumer-facing tools, such as automated customer service through chatbots, or to streamline their lending processes, like mortgages and business loans.
In addition to their core finance activities, some fintechs are introducing completely new ways for consumers and businesses to store, move and spend money. For example, all-digital banks (neobanks) are rapidly gaining popularity among tech-savvy customers. They don’t have physical branches and can provide all their services through mobile apps — from checking and savings accounts to credit cards and even unsecured mortgages.
Other fintechs are introducing new ways to manage and access cryptocurrencies, such as Bitcoin. They’re also launching new ways to trade these currencies, such as the blockchain-based trading platform Robinhood and exchanges such as Coinbase. They’re also enabling small businesses, such as e-commerce platforms, gyms and plumbers, to get paid quickly and more easily through integrated payment providers. They’re also helping to promote financial literacy through new online and offline educational tools and platforms. https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/