introduction
Good day everyone my name is Victoj and I'm here today to educate you on one of the most innovative technology of the 21st century. Today we will be talking about fintechs, it's origin and examples and how they have changed modern-day banking.
Definition of FIN-TECH
To give a proper definition of the term fintech we must first understand the various components which are finance and technology and how these two are interrelated.
Finance
Finance involves the exchange of goods and services and all the related activities which takes place between payment of goods and services and receiving of goods and services. Hences finance is a broad term which encompasses various order technical activities.
Technology
this is known as the use of modern-day science in order to simplify human day-to-day activities.
FIN-TECH
Fintech is the combination of technology with the finance hence using technology to perform financial activities. by using Smart chips and various order intelligent innovations to make the process of doing business Alot easier for both buyers and sellers.
Origin of fintech
Is it particularly difficult to pinpoint the exact date and origin of fintech. From Research carried out by me we can say that the origin of fintech first started as far back as late 19th century.
While the likeof *Chris Skinner who is a UK fintech enthusiastic greatly pushed for the abduction of fintech in the early 2000 hence he is often called the father of fintech.
Types of fintech
Fintech is a very broad sector and involves various activities which take place in the process of doing business. Hence they can be grouped in to the following.
This fintech are grouped based on the type of services they offer.
Fundraising Companies
This fintech is established for the main purpose of helping individuals gather funds from a large number of people. The fundraising fintech was created in order to encourage people to be able to donate money anonymously towards a goal.
we often hear of people donating money to charities of their choice all this is being possible with the aid of fundraising fintech companies such as
crowdfund.com
Lending Companies
This fintech companies exist to provide loans to individuals outside the banking sector. Lending companies often require little or no documentation to provide loans to people hence they are very used by people because they can collect loans with as little or no collateral, this has helped a lot of individuals in today's rigid economy to get loans to finance their various projects the downside to this type of fintech companies is that they usually charge high interest rate an example of such a is branch and okay. Amongst others
Investment and Trading
These companies are into the business of investing consumers money. They often advertised insane return on investment and give individuals the ability to multiply their money in just months.
It is worth nothing that this form of fintech companies are often plagued by various scams such as racsteli.com which recently collapsed when the founder ran away with Alot of investors money.
Savings and Investment
This sort of fintech companies help individuals to save their money they act as a sort of digital bank to individuals.
This one of banks are usually very attractive to customers as they often attract little or no charges due to the low operation cost amongst others.
An example of such fintech company is Kuda bank, carbon, opay amongst others.
Payment Service Providers
This was the first form of fintech company. this form of fintech helps in processing financial payments such as the payments of goods and services online amongst others they where amongst the first set of fintechs to break into the modern-day market an example is PayPal, paystack amongst other.
Basic knowledge of fintech
In today's environment we got to know that due to the fact that the world is changing and turning digital, the existence of fintech company was only a matter of time as individuals are now in favour of any form of online activities above physical activities.
They are far above traditional banking systems, also the various forms of fintech companies respect consumers privacy hence will most likely som eday replace traditional banking system this is due to the fact that individuals are becoming aware you of the need to protect the privacy.
Food for thought
I leave this for everyone reading this
Do you think cryptocurrencies will be where we are today without fintech.??
summary
Having looked at the various forms of fintech company it is no wonder that individuals a fast adapting to this form of financial technological development.
In the last 10 years there has been mass adoption of fintech leaving so many confused and so many investors buying into the market the amount of investments which are coming into the fintech industry today is astonishing, it is assumed that in the next 10 years traditional banking system will be obsolete and crypto form of payment would be more popular than traditional fait currencies.
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