Financial technology, or fintech, refers to the use of technology to improve and automate finance-related products and services. This includes a broad range of innovations from mobile banking and online lending to robo-advisers and blockchain solutions.
The emergence of these new tools and technologies has created a profound shift in how consumers interact with the finance industry. This shift is being catalyzed by a combination of factors, including rapid technological advancement, fundamental demographic changes and the soaring cost of traditional financial services.
Some of the most popular examples of fintech include buy-now-pay-later payment apps like Square and Lending Club, peer-to-peer (P2P) lending platforms such as Prosper Marketplace and OnDeck, and business loan providers such as Kabbage and Lendio. Each of these fintechs are challenging the status quo by offering easier and cheaper alternatives to traditional financial institutions.
Other fintechs are reshaping the way that insurance companies and banks work by using machine learning to create more customized offerings for customers. For example, insurance tech firms such as Hippo are introducing AI and machine learning to streamline the application process and help customers better understand their coverage and premiums.
Still other fintechs are enabling individuals to manage their investments more easily and with less expense by digitizing paperwork and allowing for direct trading between investors and investment managers. This is being accomplished through blockchain technology and robot-processing automation (RPA). https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/