Maybe you have not heard about
Fintech companies but definitely, you knows G-Pay, Stripe, PayPal, Ant finance,
Paytm, PhonePay, LendingKart, Digit, RobinHood and many others. There is a huge
list of Fintech companies and it is growing day by day. Many potential startups
are joining this list.
What is Fintech or Financial technology?
Financial technology (Fintech) is used to describe new technologies that are improving and automate the use of financial services. It is the term used for any technology that is used to augment, streamline, digitize or disrupt traditional financial services.
Fintech refers to software, algorithms and applications for both Computer and Mobiles. In some cases, it includes hardware too, like smart connected piggy banks or Virtual Reality (VR) trading platforms.
Major role of Fintech apps are in moving money, bill payments, lending money, Crypto exchanges, check deposits, Insurance, MSME loans, UPI transactions, Stocks, Mutual funds and many more.
Fintech get an extra edge with the technology on his side, to streamline the money matters. Lower entry barriers is helping new players to seed the innovative idea. The positivity of investors and trusting the digital wave of innovation is another reason for Fintech to expand its reach.
How could Fintech kick Banks out of the System?
Fintech has several advantages over traditional banking institutions that allows operators to be more innovative and to deliver services to their customers more quickly and cost-effectively. This has enabled Fintech to shake up and disrupt the financial services industry.
Digital finance is a growing trend worldwide and startups evolve the traditional financial system into smooth system, with deep tech solutions focused on microfinance, digital payments, credit scoring and remittances. P2P lending and MSME financing are the two emerging, promising areas which turned the banking sector on their end.
With reduced dependency on banks by delivering a faster turnaround time in underwriting loans. In the lending space, financial tech startups have introduced transparency and are also lowering due diligence costs through faster operating processes.
This, in turn, is boosting economic development of countries and also seems threatening for banks. This growth in technology is expected to add millions of new jobs in the sector.
You can see in your daily life, Your dependency on banks is decreasing day by day. You don’t need to go to banks for money transfer, Check deposit, even for loans, Insurance etc. All the facilities available in your mobile now, with much faster speed and transparency.
Despite having so many benefits, still it’s actually not possible that Financial technology will replace traditional banks. Because people have trust on Banks and established financial institution, that have built up over many years.
In addition, the trend in the financial market is now towards partnerships between traditional banks and financial tech companies. The banks gain technology and new methods of service delivery, while the Fintech operators gain access to an established customer base and extend their reach.
List of Top Fintech Companies worldwide
There are more than 1,20,000+ fintech Companies in US and around 53000 fintech Companies in India. Here is the list of top 15 Fintech companies worldwide-
1. Square, Inc.
4. Ant Finance
7. Personal Capital
List of Top Fintech Companies In India
Most asked queries about Fintech Companies
Is Fintech all about MONEY?
Not really! Fintech is about
smoothening, automating and transferring money and money processes, and
INNOVATION is the key there. We might have started with the swapping system,
and gradually moved to formal currency, but innovation has always been the heart
of how money is handled.
How are Banks and tech firms competing over new talents?
There is a huge talent gap between big tech firms, banks and smaller companies. Big tech firms and banks are able to lure away Artificial intelligence and analytics talent because of their established structure, while smaller firms lack in financial terms.
On the other hand, big tech firms provide a clear roadmap for success and
career growth with tools and programs that allow data scientists to thrive.
They also allow data science teams to flourish and enable them to take risks
and test out new approaches.
What are 4 categories of Fintech users?
There are four broad categories of users for fintech:
1. B2B for banks
2. Their business clients
3. B2C for small businesses
What are the areas that belong to Fintech?
There are major four Fintech
areas – digital lending, payments, blockchain and digital wealth management.
These are because of particular interest due to their rapid pace of growth,
technological disruption, and regulatory and other risks.
Will Fintech create more jobs?
The Fintech ecosystem is
better known for digital payments, lending and digital wealth management, which
is gaining adoption quickly. In terms of the landscape, 64 percent of Fintech
startups or organizations are less than 3 years old with a staff strength of 14
in india. And around 7 percent of these startups have turned profitable.
According to a KPMG – Google report, Indian FinTech industry is expected to
drive 5x more employment by 2022.
Is PayPal & Paytm are Fintech?
Yes, PayPal and Paytm are fintech or financial technology platform — it
clearly fits the definition of any business that offers online or integrated
financial services (such as banking, credit, insurance, or investments) primarily
through the use of technology. In fact PayPal in worldwide while Paytm in India
are one of the biggest players in the fintech market.
What is Fintech hub?
A Fintech hub is the principal
region or main point for Fintech activity within a region or a network. It is
the ecosystem including the entire infrastructure, organizations and people
within the hub, as well as how those elements are organized and engage with
What jobs are in Fintech?
Financial technology requires developers and managers with specialist skills so it is creating jobs in a number of areas.
Fintech uses disruptive technology that streamlines existing services, makes new financial services possible, and enables companies to automate repetitive tasks.
Cybersecurity professionals, they must take responsibility for evaluating vulnerabilities, investigating incidents, and creating response plans in the event of security breaches.
Quantitative analysts are being recruited to guide securities firms, investment banks, and hedge funds in making informed decisions about markets, pricing, and financial risks, as they implement their complex trading programs. These analysts are specialists in math, data science, finance, and application development.
Artificial Intelligence (AI)
and Machine Learning (ML) take on increasing roles in
finance management, machine learning engineers, data scientists, developers,
and researchers are entering the fintech sector to manage, develop, and oversee
Is Blockchain & Bitcoin is Fintech?
Yes, Blockchain technology is financial technology. Blockchain is simply defined as Decentralized Transactions which can be viewed and accessed by anyone in the network of blockchain. Each user has equal rights to view and access past transactions and to make changes to the database by initiating a transaction, which is then stored in the database and becomes visible to all the other users.
Cryptocurrencies are based on blockchain technology and the major chaos in
banking and financial sectors for about cryptos is because they can strike off
the current banking system out of the market. Because cryptos are the more
convenient ways for transact money.
What is a Fintech platform?
Financial tech Platform includes-
-One party who uses Fintech products
-Second party who builds the Tech for those products
-Third party who provides the core Financial elements for the banking system to function.
How do I learn Financial Technology?
If you want to learn for just knowledge purpose, you can start your own account on exchanges and start investing a bit. Also refer blogs and articles about Fintech.
For work purpose, You could join some Fintech fairs or events in your city
to identify what’s being addressed by traditional finance companies and what’s
not being addressed. You can learn by their experience and join any fintech
companies according to your skills.
How banks using Fintech?
Banks are using Fintech to provide better services to customers at their
home. banks are using financial technology to make access to cash and credit
easier for their customers. Financial institutions are using digital tools like
chat box to enhance the customer experience, mobile apps to give consumers
real-time access into their finances, and machine learning algorithms to secure
Why are there so many Fintech companies?
Because there’s a greater need to serve unbanked consumers and growing companies that are not well served by physical banks. As a result, Fintech companies, both mature and startups, are spread around the world.
What are the problems in Fintech?
Fintech has helped improve the products and services offered by
traditional financial services. But a central issue of the industry is the
hidden risk of breach of cybersecurity. This mainly includes data breaches,
malware risk, third-party security risk, cloud-based security threats and even
digital identity risks.
What are the benefits of using AI-based financial management solutions?
Artificial intelligence generates deep customer insights that are
valuable for both the bank and customers. It enables banks and merchants to
anticipate customer needs and proactively suggest the next best actions. At the
same time, AI helps financial institutions to empower people to better manage
their life and business, and make financial decisions in a smarter, more
transparent and independent way.
Why are banks investing in digital technologies?
Almost all banks are now keen to show off their technological aspects as digital technology transforms how we work, play and manage our money.
The most common reasons for digitizing are
higher sales and lower costs. Growth is expected to come from giving customers
more digital products, more efficient operations, and improved product
differentiation and market penetration rather than entering new markets.
What is the future of digital banking?
Digital banking refers to the digitization of banking services, thus
eliminating the need for consumers to physically visit a bank branch. This has
rendered traditional banking systems obsolete. As Fintech companies are gaining
trust of peoples very rapidly, Banks are
left with no option but to adopt digital banking. So if well-established banks
are adapting digital banking then there is a vast future of this. people have
trust over banks and banks have loyalty of customers so there is a big change
is coming in banking structure in near future by digital banking.