Fintech propositions in banking revolve around retail and SME customers, with a focus on payments, lending, and personal finance.
Fintech companies by the proposition:
Include Point-of-Sale products and services (card readers, stands, and digital storefronts), and online payment systems.
Billing, automation & streamlining
Solutions to streamline invoicing and automate financial processes and billing, targeting SME clients; including trading platforms.
Digital platforms to monitor spending, savings, credit scores or tax liabilities.
Digital banking, deposit and current account solutions, primarily via mobile or online platforms.
Direct lending and underwriting
Use of machine learning technologies and other non-traditional methods to assess the creditworthiness of individuals and businesses, including SMEs.
Online platforms for consumer borrowers/SMEs to connect with willing lenders.
Money transfer and FX services
The digital solution for sending money across borders quickly and cheaply.
Using digital currencies, for example, bitcoin, to make payments faster and more secure.
—Focus areas for fintechs have been in banking-related technology, ‘with over 70% of investments focusing on the ‘last mile’ of user experience in the consumer space’.
—Retail and SME lending, and tools for personal finance and payments have seen most innovations.
—Consumers’ expectations for quality service have risen, as they are used to better digital experiences offered by tech and retail companies.
—High penetration of smartphones and other connected devices has enabled the adoption of digital solutions.
—By innovating to provide user-friendly products, fintechs have gained traction with end customers.