What is a FinTech?
Financial technology (usually referred to as fintech or FinTech) is a term used to describe technology that has been introduced in order to deliver financial services in a more agile, cheaper and innovative way. It is usually a domain for relatively new companies and startups (often called fintechs) that try to introduce their innovative solution to throw down the gauntlet to incumbent providers of financial services, incl. banks, asset managers, insurance brokers, insurance companies, etc. Financial services have always been a large part of our everyday lives. They are present when you want to open an account, insure your house, make a bank transfer, invest in a stock.The companies providing these services are usually highly regulated and operate on very large datasets. This why they are so susceptible to new innovative solutions that can automate some of their operations and why fintech startups are so successful. Fintechs have been gaining importance among startups gradually filling all the gaps in the incumbent ecosystem of financial services companies. This is exactly why we decided to specialize in this area. Below you can see a description of selected types of fintech startups.
Digital banks and banking software providers
Digital banks are operating purely online. They assist you in all your banking needs with no brick-and-mortar presence. Thanks to them you can now open and manage your bank account entirely online. You can also send money directly from your mobile phone. These fintech startups are among the most prominent ones in the fintech ecosystem.
Cryptocurrencies and blockchain
Most known for bitcoin, but bitcoin is just one possible usage of blockchain. Blockchain has a much broader application than just being a core for an alternative currency. Blockchain is a distributed ledger technology (i.e. DLT). Based on it data can be stored on hundreds of nodes allover the world, while at the same time allowing any member of the network see all entries in almost real-time. Apart from cryptocurrencies, this technology can be used to authenticate documents, music royalties tracking, cross-border payments, personal identity security and many more!
Globally people are moving much more often than they used to. They do it for work, educational or simply travel reasons. However,whenever they do it, they often need to transfer their money. In the past they had to pay high fees to send the money internationally. Now the payment startups help them do it almost for free.
They are often referred to as insurtech startups. These companies initially focused on comparing the rates of various insurance providers. However, they have already entered into the more advanced areas of insurance. Now you can insure your car or your house simply by using one of many apps on your mobile phone.
Startups that help companies comply with regulations more efficiently and cheaper are often called regtech startups or simply regtechs, which is an abbreviation of regulatory technology.
Why hiring the right IT experts is important for fintechs?
As technology lies at core of every fintech company, hiring the right IT team is an extremely important element for the overall success of every startup specializing in financial technology. Reach out to us if you need help in recruiting IT experts! We can help you with hiring a 100% dedicated IT staff or simply enhancing your IT team with a specific know-how via our team augmentation solutions.