Financial technology facts for kids
Financial technologies (FinTech) are technologies which people use in financial services to help companies manage the financial aspects of their business. Nowadays fintech is the basis for all online transactions - money transfers, loans and more. Many technology startups and large organizations that try to improve financial services are considered to be a part of fintech.
FinTech refers to new applications, processes, products or business models in the field of financial services that are provided through the Internet. Services may be provided by different independent providers at the same time. Usually it includes at least one licensed bank or insurance company. Their interaction is often regulated by special laws and regulations, such as the European Payment Services Directive.
FinTech companies are special because of the ability to create innovations.
Meaning and history
It was said by the Professor of the School of Management in Friborg Patrick Schueffel that "Fintech is a new financial industry that uses technology to improve its financial performance". It is considered to be the meaning of the term.
The word fintech was first published in the 1980s: an article by Peter Knight entitled FinTech was published in the Sunday Times. It meant the bot that made the changes to his email.
The companies in the field of fintech began to grow rapidly and changed a lot after the global financial crisis in 2008. Large corporations began to invest in the fintech business, which was like an alternative to the old business models of the financial sector. Traditional banks, on the other hand, had millions of customers who wanted new service standards.
In Ukraine, the state promotes the development of fintech in accordance with the Strategy approved by the National Bank of Ukraine in July 2020.
Currently more than 100 fintech companies are working in Ukraine and their amount is increasing.
Types of financial projects
There are more than 10,000 fintech companies operating in different fields in the world.
- Personal finance management;
- Investment platforms;
- Collective financing (Crowdfunding);
- B2B fintech;
- Money transfers;
- Big Data Analysis;
- Artificial Intelligence;
- Neobanks (banks-challengers);
It is a set of tools that a financial institution provides to third-party business structures to create and develop its own innovative services. It includes a processing center, acquiring and billing system.
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