We’ve talked a lot about FinTech around here. (It’s in our name, after all!) As you probably know, FinTech is a term used to describe the cross between finance and technology. It’s a revolution that’s taken over everything from how banks work to mobile apps, and it only continues to evolve. But if you’re wondering what exactly FinTech companies are, or what they do, we’ll break it down below.
Types of FinTech Companies
FinTech encompasses a broad range of categories. Some of the types of FinTech companies you’ll find include:
You might not think of your bank as a FinTech company, but many banks are implementing FinTech ideas and technology into their everyday business. As technology has advanced, banks have started to rely more heavily on their mobile apps and websites. Customers can do more banking digitally than ever before.
- Money transfers
Apps like Venmo and PayPal are heavily used to send and request money between friends or family. These types of businesses are very useful to make sending money as easy as ever, without the need for cash or old school methods like checks.
Apple Pay is a great example of an instance where FinTech is used to innovate how money is used. With apps like Apple Pay, people can buy products, pay for services, and go out to eat without having to carry cash or even swipe a card.
There are tons of new lending companies popping up that are shaking up the industry. There’s even rumors floating around that businesses like Amazon are thinking about getting into the student loan lending space. Something that wouldn’t be possible without FinTech!
- Personal finance
FinTech has made getting a hold on your personal finance way simpler than it ever has been. With budgeting apps like Mint and EveryDollar, people can track and check their finances at any time. Creating and sticking to a budget is an essential part of accomplishing financial goals, and these types of apps help set you up for success in a huge way!
Investing can be a confusing topic to understand. There are lots of new apps out there to help people get into investing. Robinhood and Acorns are only two examples of FinTech companies that are helping users understand investment principles, and put them into action!