FinTech

Financial Technology – Categories of FinTech Solutions

FinTech refers to new solutions which demonstrate an incremental or radical / disruptive innovation development of applications, processes, products or business models in the financial services industry. These solutions can be differentiated in at least five areas.

  1. First, the banking or insurance sector are distinguished as potential business sectors. Solutions for the insurance industry are often more specifically named “InsurTech”.
  2. Second, the solutions differ with regard to their supported business processes such as financial information, payments, investments, financing, advisory and cross-process support.[4] An example is mobile payment solutions.
  3. Third, the targeted customer segment distinguishes between retail, private and corporate banking as well as life and non-life insurance. An example are telematics-based insurances that calculate the fees based on customer behaviour in the area of non-life insurances.
  4. Fourth, the interaction form can either be business-to-business (B2B), business-to-consumer (B2C) or consumer-to-consumer (C2C). An example are social trading solutions for C2C.
  5. Fifth, the solutions vary with regard to their market position. Some for example provide complementary services such as personal finance management systems, others focus on competitive solutions such as e.g. peer-to-peer lending.

Global investment in financial technology increased more than twelvefold from $930 million in 2008 to more than $12 billion in 2014

Source: Financial technology – Wikipedia, the free encyclopedia

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