Father’s Day is over, but that doesn’t mean you should stop pretending to care about your dad’s interests! Perhaps, even, you should consider getting him into your very own interests. Oh look – fintech is a great interest!
But what the heck is it? We’re glad you asked.
What is fintech?
In the simplest of terms, fintech refers to a type of technology used for supporting or enabling banking and financial services. To break it down – cue the DJ record spin – if your dad is tech savvy, he likely already uses fintech in his daily life. Mobile payment apps, more commonly known as cash apps, are one form of fintech. Why? Because this technology is used to move finances.
But what else does it do? Fintech often aids with business automation, such as quicker loan underwriting. Even the age-old ATMs your grandparents use are a form of fintech! However, as technology continues to prove, so do advances in the fintech hemisphere.
Types of fintech
There are currently some of the main categories in fintech:
- Mobile Payment – Have you heard of cash apps? This popular form of money transfer is one example of fintech in the payment realm.
- Digital banking – This typically refers to consumer-based banking technology and apps, such as apps used to transfer funds to and from your banking account.
- Deposit and lending – You’ve seen commercials for a variety of major companies that use technology to simplify the way that people borrow money. Using these apps to get a free credit score or student loan is a popular example of fintech usage for depositing, lending, or borrowing money.
- Crowdfunding/peer-to-peer lending – Crowdfunding is the act of using various networks or apps to raise money, whether it be for yourself, a business, or another person. Believe it or not, it is one form of fintech!
- Cryptocurrency and trading – Cryptocurrency is a digital currency that you can trade via your smartphone! Yes, you can even buy stocks with it.
- Insurance – No, we’re not talking about typical insurance. In fact, many insurance firms involved in fintech are very different from your typical insurance administrators. The goal is often to speed up insurance processes to allow for quick payment.
Financial technology comes in all shapes and sizes, and it will only continue to be more prevalent in modern society. Whether you want your dad to be a guru or an average Joe, KCD PR is here to help you understand the importance of fintech.