The new frontier: Fintech
In the empire of the technological era also appears the financial one.
Technology within the reach of everyone, but really everyone.
Nowadays, all we do is talk about cryptocurrency, blockchain, online payments here and there, and what if we talked about them by simply saying Fintech? Can one word sum up the intricate world of financial technologies? In a way, yes!
FinTech is a macro category that brings together all those technological innovations that are revolutionizing the entire financial landscape.
With the term Fintech (Techno Finance) we are going to describe a multi-billion dollar industry that is changing the way we shop, borrow, save and relate to banks.
Specifically, we often talk about Fintech-Fin startups and Fintech-Tech startups: the former are those who focus on one or more financial services and try to optimize them through the use of digital tools, the latter instead have a totally opposite process, as they start from the development of a specific technology that is then applied to the financial sector (often not only).
We talk about “fintech innovation” to describe whenever new technologies alter the way markets operate; in other words, when financial services where technological developments push financial institutions to rethink their approach to the industry.
Innovation is called “disruptive innovation” when it leads to the creation of services that generate a sudden disruption to compete against a dominant technology.
It serves to seek progressive consolidation in a given market. The Fintech theme offers us the assist to talk about Insurtech: in the insurance field it indicates the improvement of efficiency in this sector.
Thanks to it, one can benefit from a platform from which to control prices and activate policies in a secure and transparent manner. Reports more focused on financial aspects tend to consider Insurtech as a “sub-segment” of Fintech, while analyses related to insurance aspects highlight a separate meaning.
FinTech represents the possibility to reach new customers and/or increase the number of purchases of loyal customers through dedicated apps.
Obviously such a fast growing and still relatively unexplored sector is bound to attract several Start-ups that represent the perfect corporate form both to explore the potential of this market and to reap its benefits.
