Did you know? This is the wide range of areas Fintechs cover
Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services.
Fintechs have evolved from the traditional ones to some that you wouldn’t directly associate with the Financial Area.
Initially, all these Fintechs started by challenging how traditional banking (mainly Retail) was functioning. From simply account management and payments to shift the way we lend money from banks or each other (peer-to-peer). It is worth mentioning those areas which were in focus in the first phase of Fintech evolution:
- Asset Management
- Personal Finance
- Mobile Payments
- Fraud Detection
The next stage of fintechs are broadening their use cases by challenging the big financial players in all the areas moving now from Retail (where the market was pushed to innovate and develop to a large extent) to Businesses (especially SMEs).
The wider scope of fintechs developing technologies revolve around the following areas (Europe focus):
- Cryptocurrency and Blockchain technology eg: Nexo, Bitwala, Kaiko
- Smart contracts, deploy computer programs (often using the blockchain) to automatically execute contracts between buyers and sellers. ex: Lexit
- Open banking, a concept that leans on the blockchain and posits that third-parties should have access to bank data to build applications that create a connected network of financial institutions and third-party providers. ex: FintechOS
- Insurtech which seeks to use technology to simplify and disrupt how business is done in the insurance industry. Especially related to the health industry . ex: Skaly
- Compliance & Regtech, the main area of focus for banks in the past years where a lot of investment and effort was allocated. This is the area that offers support to financial companies to meet industry compliance rules, especially those on Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols ex: AIDTech
- Robo-advisors, utilize algorithms to automate investment advice, lowering its costs and so making it more accessible to other segments of the population. ex: ABAKA
- Unbanked/underbanked, services that seek to serve disadvantaged or low-income individuals who are ignored or underserved by traditional banks or mainstream financial services companies.
- Cybersecurity, another area with increased focus from the financial firms not only improving the technology against cybercrime and the decentralized storage of data but also raising awareness and training the banking employees in this direction.
- Digital Identity Verification ex: Forgerock
One of the areas that became even more closely linked to Fintechs because of the pandemic is PropTech. This was a great benefit for both real estate players (including banks) and their customers in automating and digitalizing the searching, viewing, and financing the properties. Among the front runners in this segment: Properti ; Proportunity
A hot topic to keep an eye on is Embedded Finance which places the banks and insurance in the background by abstracting them into technology. Fintechs are currently taking the lead by creating these offering under the umbrella of “Banking-As-a-Service” platforms.
If your Fintech covers one of the areas mentioned in this article, you should definitely apply for our #NEXTFintech acceleration program.
You can register here by October 1, 2020. Up to 12 selected startups will enter the program.
The accelerator program is powered by European Fund for Southeast Europe from Luxembourg, having as program partners GapMinder VC, Google for Startups, RoFintech Association, Seedblink, TechAngels, and Stripe.
By the end of the program, according to the progress made, you could be eligible to receive up to 200,000 euros from Techcelerator’s investment partners: GapMinder VC, TechAngels, SeedBlink, and several other regional investors.