Category ArchiveTechnology

Fintech: When are you talking about Fintech?

You may have heard about Fintech: startups reinventing finance with technology. Sometimes pushing the established actors of the sector. If you have not heard of it yet, you are at the right place. Franck Peltier will provide a detailed definition to better understand the issues around this new phenomenon.
A contraction of finance and technology, the term “Fintech” appeared for the first time in the years 1980-90 in the specialized Anglo-Saxon press. It really spread after the 2008 financial crisis outside the world of finance to describe innovative companies, rather young, using the technologies of digital, mobile, artificial intelligence, etc., to provide services more efficiently and cheaply. These are generally start-ups, even if historical players in payment or banking software sometimes come under this new term.
2015 is surely the year in which Fintech became mainstream, with an explosion of the amounts invested by venture capital funds in startups in the sector, followed by the major established players in finance: $ 47 billion had been invested that year in the startups of the sector.
However, according to a recent Harris Interactive survey for Deloitte, 83% of French people do not know the term Fintech, and only 4% know “pretty much” what it is (they are as much to be confused with ” fitness “…). They sometimes use them without knowing it.

The different types of Fintech

There are usually several categories of Fintech:

The BtoC Fintech (business-to-consumer)

Which is aimed at the general public, for example the 100% digital “neobanks”, without an agency, which offer an account and a low cost payment card (Compte Nickel, Morning), online pools like Leetchi or LePotCommun, payment applications like Lydia or personal finance management (Bankin, Linxo), as well as wealth management tools (dashboard like Grisbee) or automated investment (robo advisors like Marie Quantier);

The BtoB fintech (business-to-business)

offering financial services to companies, SMEs or large accounts, such as online currency transfer (Kantox) or paperless factoring (Finexkap);

The BtoBtoC Fintech (business-to-business-to-consumer)

like the crowdfunding platforms, which connect project leaders, creators, retailers, SMEs, and investors, individuals or professionals: crowdfunding in gifts with or without rewards (KissKissBankBank, Ulule), crowdlending (SME loans, such as Lendix and crowdequity (capital financing, such as Sowefund);

Insurtech, in insurance

From comparator, like Fluo, to collaborative insurance like Inspeer or Otherwise, and 100% digital health insurance, like Alan;

Regtech

Companies that offer technological solutions to meet the regulatory and compliance constraints of banking players mainly (especially in customer knowledge or “KYC” in the jargon) such as Fortia or Neuroprofiler.

Fintech in Africa

In 2030, according to Bill Gates, two billion people around the world will use their mobile phones to save, borrow and make payments. Banking innovation is therefore a new space for conquering African startups.
In Africa, thanks to FinTech technologies, mobiles have become a powerful tool for e-inclusion, which, in the absence of banking infrastructure, makes it possible to receive wages and pay them out of the informal sector. the African population, absent from official statistics.

New technologies at the service of finance

The capitalist system is based on finance. This area has gained momentum because of the globalization that is transforming the financial system through new technologies. International finance therefore becomes a facilitator of proper allocation of capital, and promoting economic development in each country. New technologies are innovating the financial sector, allowing for mobility of financing. In other words, financial operations are no longer the way they were. That is one subject Franck Peltier works on in Singapour.

Finance and Technology

Financial operations are conducted in several ways including loans, grants, and payment methods.
Companies, in order to finance their development projects, issue shares on the stock market at the expense of bank loans.
Previously, the stock market was a meeting place for buyers and sellers. It was therefore considered a market where listed companies were going to meet investors. These meeting, called trading sessions, made it possible to determine stock prices.
Nowadays, this method was obsolete, because the transactions were dematerialized thanks to the advent of digital technology. Exchanges are now computerized. No more physical encounter between the partners.
We also have the Bitcoin system that promotes the use of virtual currency. We are witnessing lightning-quick new payment methods. The physical world is being brushed aside by the digital world. Payments and financial transactions are now conducted through mobile applications, computer use (purchases, reservations, bank transfers, use of bank cards, etc.).
Remittances are now remote.
These new technologies and digital imaging are therefore changing financial systems in order to facilitate the activities and financial transactions, and thus gain time. !

Finance and Technology

The advent of technology has revolutionized many areas, recognized Franck Peltier, and finance is no exception to this. Most major financial institutions today use digital technology or digital strategy to develop and bring added value to their business! Well, yes, more and more people today are using the Internet, even to perform their financial transactions. It is therefore quite normal that the financial sector is dragged into the mix!