It is increasingly common to encounter this term in the media or in business conversations, as Fintech has played a major role in international affairs in recent years.

But, what exactly is Fintech?

Fintechs are companies in the financial sector that integrate technologies into their business model to improve processes and services in terms of automation, efficiency, and security.

The term comes from the combination of the concepts "finance" and "technology," so a literal translation would be "financial technology." 

These companies are characterized by rapid growth, innovative business models, and customer-oriented products and services, focusing on providing users with the simplest and most intuitive experience possible. To achieve this, companies integrate the use of technologies such as artificial intelligence, big data and data mining, robotic process automation (RPA), and blockchain into their solutions. artificial intelligence, big data and data mining, robotic process automation (RPA), and blockchain.

Technological changes have enabled companies to offer a wide variety of services to customers at a much lower cost, without cumbersome procedures and even without setting foot in an office, or to bring them closer to products that were previously simply inaccessible. Among the solutions they offer are:

• Payment gateways: Online payment management platforms essential for conducting transactions in stores and e-commerce services, benefiting both SMEs and customers.
• International transfers: Through the use of technology, money transfers can be made at much lower speeds and costs than traditional competitors.
• Loans: These can be accessed to finance projects much more easily and quickly. It is increasingly common to see crowdfunding platforms. crowdfunding and factoring platforms, connecting investors and entrepreneurs.
• Open banking: Financial information is collected from users to be shared with third parties, thus streamlining and adding transparency to lending and financing processes.
• Investments: There are numerous Fintech companies that focus on bringing the world of investments closer to users in an easy and intuitive way, allowing them to invest and view the process clearly and quickly.

In recent years, with the widespread use of smartphones and the public's trust in digital services, Fintech services have seen exponential adoption. Thus, the banking industry has been challenged by the rapid emergence of these companies that are revolutionizing the way people relate to money. revolutionize the way people relate to money. Over the next few years, we will see how traditional banks will have to adapt to change or form alliances with these Fintech companies to face their meteoric rise.

Leandro Mora

AGF Team

FYNSA