In the past year, you may have come across the new term ‘FinTech,’ but weren’t too sure what it was all about.
Well, here we have for you a beginner’s guide to FinTech, detailing what it is and why you as an entrepreneur should know about it!
What is FinTech?
FinTech, a combination of the words ‘financial technology’ is a revolutionary new area of a traditional industry. While this term has been around for several years now, it’s only recently that this fledging new offshoot of the larger banking industry has started to come into its own. FinTech is revolutionising and reshaping the banking industry.
The digital revolution is transforming the way people want to access services and financial products and FinTech meets new digital-driven demands. Nowadays, customers increasingly expect to be able to manage their finances on the go, from applying for a mortgage through a video link or sending global payments using their phone number. Established financial companies and banks are investing in new digital technology, however, they are under increasing pressure from a plethora of agile start-ups.
FinTech Putting Banks Under Pressure
FinTech start-ups pose a direct threat to established financial companies, as they are able to capitalise on gaps and weaknesses left in the current market. For example, Monzo is a specialist in smartphone banking. This start-up offers personal accounts that enable mobile users to monitor spending and keep track of funds. This free UK current account acts as an easy-to-use financial management platform. Similarly, platforms like Tide offer businesses an easy automated solution to their bookkeeping woes. In the below infographic, you can find a few more Fintech banking alternatives.
As you can see, there are so many new and exciting options for budding entrepreneurs out there and you have a plethora of FinTech to choose from. Do your research and see which one is right for you.
With these alternative banking options set to be the future, it is worth your while to jump on this now rather than later!