Banking, finance and various other businesses have been transformed by fintech; proceed reading for further information
In the year of 2024, everywhere we look there are brand-new innovative fintech companies that are switching the way in which individuals interact with the financial services industry. One of the most typical fintech examples in real life is mobile payment. Mobile payments have transformed an entire industry by allowing users to spend money using their mobile devices. Virtually all they must do is link up their contactless bank account onto their phone’s ‘wallet’, indicating that they can spend a specified amount of money without having to physically withdraw any physical notes from an ATM. This makes daily life significantly simpler for people, particularly if they wind up in the bad situation where they are only are a couple of notes short, or they have gone to do some shopping and have completely forgotten to pick up their bag. Not just this, but mobile-payment technologies have improved security and safety by enabling customers to make payments without disclosing their personal details. Additionally, another advantage of mobile payments is that they have streamlined the transport industry. People do not have to queue up at the box office to purchase their train tickets if they do not really want to; alternatively, they can ‘tap on’ and ‘tap off’ with the mobile payment on their phones. For these reasons, it is easy to understand why there has been a a great deal of investing in UK fintech companies.
Before delving into the ins and outs of the fintech sector, it is critical to understand what it actually means. Simply, ‘fintech’ is a combination of the words 'technology' and 'finance', which refers to virtually any modern innovation that has digitalised a component of the financial services market. The fintech growth statistics are shocking; each and every year we are observing more and more fintech start-up companies materialize from around the world. Broadly-speaking, the industry that has changed the most thanks to fintech is the banking sector. There are plenty of fintech examples in banking, yet, one of the most notable and widely-used examples is mobile banking. Mobile banking comes with numerous features, like account management, transfer of balances and payment of bills, all through a mobile application that can be used wherever and whenever users demand, granted that they have WIFI. The number one thing about mobile banking is that it has made it a lot easier for individuals to manage their financial situation on a day-to-day basis. It has also made banking considerably more handy; users do not need to go to the commercial bank or stand in a long queue every time they need to transfer some money. This is why investing in Malta, as well as many other countries, has been centered around the integration of fintech into the banking industry.
In recent years, many of the top fintech companies are embarking into the insurance area, which has coined the term ‘insurtech’. So, what does this actually mean? In simple terms, Insurtech involves leveraging technology to make the insurance industry much more customer-friendly and efficient. It utilizes the most current technological advancements, such as 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, firms and customers can rapidly distinguish and contrast the most suitable policies by utilizing advanced analytics. Going forward, we can visualize that investing in Sweden will be focused on refining insurtech, along with several other international countries also.