What is fintech?

Fintechs are businesses that adopt technology to transform or enable business and operating models in the financial services sector.

— Businesses that use technology to reform how financial services are offered to end customers.
— Firms that use technology to improve the competitive advantages of traditional financial services firms by improving efficiencies, and driving new products and solutions for customers.

Fintech typically excludes pure technology providers, like large software companies, which provide unregulated services to financial institutions.

Fintech broadly covers the following four areas:


Personal finance: monitoring spending, savings, credit scores, tax liabilities through technology-driven services as well as providing basic retail banking outside of traditional banking.
Payments/transactions: adopting technology to provide the transfer of value as a service; also companies whose core business is predicated on distributed ledger technology and/or relating to the use of cryptocurrency.
Lending: using technology platforms to lend money to new/existing customer segments, including SMEs, using data and analytics.


Products and solutions: using data analytics and technology (for example, IoT and wearables) to develop new insurance products (for example, on-demand and peer-to-peer insurance, non-standard insurance) and propositions (for example, wellness).
Distribution: using digital platforms and aggregators to provide insurance products in a targeted manner.
Servicing and claims management: focusing on improving services and overall insurance experience (for example, policy processing and claims management).

Asset management

Distribution: offering wealth or investment management services to retail investors via platforms. Platforms include simplified interfaces/systems and tools for insights and investments.
Advice: propositions using algorithms to support the advice process. Frequently called Robo-advice, they provide access to customer segments who cannot afford traditional advisers.
Portfolio management: use of artificial intelligence and machine learning for the management of the portfolio.

Other cross-industry propositions
Capital markets: providing various types of financial intermediation services, which were historically performed by investment banks and brokerage firms.
Business-to-business fintech: offering technology-driven solutions and services specifically for other enterprises or financial institutions. For example, software to automate financial processes, and enhance financial security (excluding blockchain), authentication, and make strategic decisions.
Regtech: facilitating and streamlining regulatory compliance by leveraging new technologies, such as big data and machine learning.

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