What is a Fintech?

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Sometimes we hear new financial terms that we don't know what they mean and that are new to us, such as fintech. Are you wondering what they are?

fintech It is an emerging industry in which companies use technology to provide financial services in an efficient, agile, comfortable and reliable manner.

If you have ever used PayPal either fintonic, you were using this emerging technology and perhaps you did not even know. Therefore, in this post We want to tell you everything you need to understand the concept perfectly. So keep reading!

Definition of a Fintech

fintech it's a new financial current which is still in the process of being defined, but its growth is being very fast. It is the combination of English words finance and 'technology'.

The term fintech refers to all those activities that involve the use of innovation and technological developments for the design, offer and provision of financial products and services.

Therefore, the concept encompasses those tech finance companies that try to contribute new ideas and that they reformulate thanks to the new information technologies, mobile applications or the big data, the way of understanding and providing financial services.

Ultimately, the fintech technology is a innovation which is here to stay, as it offers quick and easy answers to users of financial products.

We are sure that you use electronic banking on a daily basis, right? For this reason it is a technological revolution that will last over time since we have become accustomed to it.

What does a Fintech do? 

The fintech companies They are dedicated to intermediating in the world of finance in different aspects such as money transfers, loans, purchases and sales of titles or financial and investment advice, among others.

The services that offers a fintech are:

  • 100% online
  • Personalized
  • More satisfying customer experience
  • Greater financial inclusion
  • Speed and efficiency
  • Greater accessibility
  • Cost reduction

Therefore, by using a software and specialized algorithms, which are used by computers and smartphonesThese new technologies come to offer the same and better services than traditional banking, but online.

Areas and sectors in which Fintech acts 

The fintech companies They offer various types of financial services and operate within different markets. Some provide their services directly to users of the financial system and others design solutions for other companies.

In the fintech technology highlights the vertical Specialization, that is, each company is dedicated solely to a very specific service, which responds to a very specific and digital financial need.

The financial activities who use the fintech technology are:

  • Mobile banking (payments and collections through a smartphone)
  • big data and predictive models
  • Compliance
  • Crowdfunding
  • Cryptocurrencies and alternative currencies (bitcoin and blockchain)
  • forex market
  • Automated process management and digitization
  • Risk management
  • P2P loans
  • insurance
  • security and privacy
  • Financial and investment advisory services
  • social trading
  • Financing of individuals and companies
  • Transfer of funds
  • Investment
  • personal finance
  • Distribution of financial products
  • loans
  • Factoring
  • financing for sale
  • Minicredit and microcredit
  • Neobanks and Challenger banks
  • remittances

It should be noted that there are companies, specifically those strar-up, whose services are exclusively fintech and other companies, the traditional ones, that provide some fintech-type services. 


fintech it is a movement where many small businesses want to change the way we understand financial services using technology. Therefore, we can say that it is a new technology financial.

The fintech They are changing the traditional finance sector, both at the individual and business level. These companies are growing exponentially and have decided to compete with traditional banks to avoid financial monopoly.

In Alter Finance we offer a wide variety of financial advisory services In case you need great professionals to help you manage and make decisions about your company. So if you do not hesitate to contact us. We will wait for you!

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