Several nations are investing in the development and innovation of fintech solutions; keep on reading to find out more
Prior to delving into the ins and outs of the fintech industry, it is essential to understand what it genuinely means. Simply, ‘fintech’ is a combination of the words 'technology' and 'finance', which refers to any modern day innovation that has digitalised a sector of the financial services industry. The fintech growth statistics are astonishing; each and every single year we are viewing more and more fintech start-up organizations appear from around the world. Broadly-speaking, the sector that has changed the most thanks to fintech is the banking industry. There are an abundance of fintech examples in banking, but, one of the most popular and widely-used examples is mobile banking. Mobile banking comes with lots of features, like account management, payment of bills and transfer of balances, all via a mobile application that can be used wherever and whenever users like, permitted that they have internet connection. The greatest thing about mobile banking is that it has made it notably easier for individuals to handle their finances on a day-to-day basis. It has also made banking significantly more handy; users do not need to head to the commercial bank or stand in a very long queue every single time they need to transfer a bit of money. This is why investing in Malta, along with various other countries, has been centered around the integration of fintech into the banking sector.
In 2024, everyplace we look there are brand new innovative fintech companies that are evolving the way in which individuals interact with the financial services sector. One of the most prevalent fintech examples in real life is mobile payment. Mobile payments have altered an entire industry by permitting users to spend money using their mobile devices. Virtually all they have to do is link their contactless bank account onto their phone’s ‘wallet’, intending that they can spend a particular amount of money without having to physically withdraw any physical notes from an Automatic Teller Machine. This makes daily life significantly simpler for people, specifically if they wind up in the regrettable situation where they are a couple of notes short, or they have gone to do some shopping and have genuinely forgotten to pick up their wallet. Not only this, but mobile-payment technological advances have considerably improved safety measures by allowing customers to make payments without divulging their personal information. Additionally, another perk of mobile payments is that they have streamlined the transport sector. People do not have to queue up at the box office to obtain their train tickets if they do not wish to; instead, they can ‘tap on’ and ‘tap off’ with the mobile payment on their smartphone. For these reasons, it is very easy to comprehend why there has been a lot of investing in UK fintech firms.
In recent times, several of the top fintech companies are venturing out into the insurance arena, which has created the term ‘insurtech’. So, what does this actually mean? To put it simply, Insurtech comprises of leveraging technology to make the insurance sector much more customer-friendly and efficient. It utilizes the most recent technological advancements, like AI and machine learning, to allow firms to make more accurate assessments of risk, which results in lower rates and improved customer service. These days, customers and firms can rapidly identify and contrast the most appropriate policies by using advanced analytics. Going forward, we can predict that investing in Sweden will be focused on refining insurtech, along with several other countries also.