Fintech is an umbrella term that means more than one thing. By marrying both finance and technology, fintech has created multiple company categories. International money transfers, personal finance, and insurance are just a few branches.
International Money Transfers
International money transfers are used to move money from one bank account to another. This can be achieved on an international level with certain fees. Fintech makes it possible to wire money in a secure fashion for the privacy and safety of its users.
Traditional money transfers take longer to process without fintech. Not only is the transfer of money delayed, but traditional transfers often have higher costs. In the past, individuals have paid as much as 8% for a single transfer. Financial software improves both time and savings for international payments.
Personal Finance
Budgeting can be a complex process. Because expenses are unique to the individual, many people have used financial advisors in the past. These advisors can help organize spending by creating visible data.
With fintech, certain apps are capable of offering individual advice. By using easily accessible forms of visual representation, graphs and databases help more people save money. This is an ideal way to use software for retirement planning.
Borrowing Money
Companies within the fintech umbrella now offer consumer loans. By applying online, individuals save time between the application process and the loan itself. This can be incredibly valuable for those who need money right away.
Certain companies can assess an individual’s credit online. Through automation, these companies can attend to more borrowers than a traditional bank.
How Has Fintech Entered Into The Insurance Business?
Insurance has been affected by fintech. Although it is not in the same industry like finance or tech, the software can benefit insurance companies.
Fintech apps can help those without insurance coverage by allowing time-specific benefits. If an individual needs to borrow a vehicle for only one day, specific apps make it possible for short-term coverage.
The insurance industry is a complex business with well-known organizations. Fintech companies will usually partner with established insurance businesses for regulation purposes. Fintech in the insurance industry is relatively new but is expanding on a regular basis.
Fintech companies design software to help manage money. This is beneficial for both individuals and large organizations. By using advanced software to manage money, financing can be done in almost any location at any time.