29 March 2023

Fintechs: future or present?

Fintechs, or financial technology companies, have carved out their place in the global economy in recent years. Having emerged as a response to the limitations and bureaucracy of traditional banks, they offer more agile, efficient and accessible financial services.

One of the main contributions of Fintechs is the democratisation of access to financial services. By digitalising transactions, fintechs are able to offer financial products at a lower cost, which makes access easier for people and businesses that previously could not afford to use these services (e.g. Startups). In many countries, people find it difficult to access basic banking services, such as current accounts and credit cards, due to a lack of infrastructure and bureaucracy. Fintechs offer accessible and convenient financial services such as instant money transfers, prepaid credit cards and online loans, making access to financial services easier and cheaper.

In addition, fintechs also offer more efficient solutions for international transactions, such as money remittances. With the use of technologies such as blockchain, transactions can be made faster, safer and with lower fees than those offered by traditional banks.

Fintechs are also having a significant impact on the investment market. The investment platforms offered by these companies are more accessible and flexible than traditional options, allowing people with less purchasing power to invest in shares and other financial assets. In addition, fintechs also use technology to offer automated financial advisory services, making access to financial advice cheaper and more efficient.

We can thus see the importance of fintechs in the increasingly digital global marketplace.