Six fintech sectors are transforming the financial industry
Fintech – short for financial technology, is transforming the world through a number of avenues that encompass all areas of the global economy. From digital payments and lending to retail, banking, cryptocurrency and more. We list the top six fintech sectors driving change and innovation in the financial world.
Lending
Leading fintech lenders: Klarna, Affirm, Funding Circle, LendingClub
The lending sector has become increasingly visible over the past decade as innovation and technology have driven disruptions that have put the customer at the heart of the lending space. Credit cards and traditional bank loans have been replaced by BNPL, peer-to-peer financing, payday loans and more. Credit cards are also going digital – eliminating the need for customers to carry cards in their wallets. Instead, the transactions can be carried out via the card’s mobile app.
Personal economy
Leading personal finance providers: Mint, Credit Karma, WalletHub, NerdWallet.
Personal finance fintech offers a wide range of services that use state-of-the-art technology to assess customers’ needs and provide them with products that will streamline and grow their finances. For example, Mint’s goal is to provide information that teaches users how to make financial decisions. Fintech offers reviews and comparisons of various financial products, including investment, insurance, loans, banking and credit cards.
Digital banks
Leading digital banks: Nubank, Revolut, N26, Monzo.
Digital banking has transformed the way customers interact with their finances because they offer all products and services online, and can make requests for account changes, deposits, loans and crypto services in real time. Their processes are streamlined and because they operate either without or with minimal branches, they can also pass the savings on to their customers. Digital banks are also flourishing because they offer super apps that cater to customers’ needs and demands with agile and streamlined services.
Centralized crypto exchanges
Leading cryptocurrency exchanges: Binance, Kraken, KuCoin, Coinbase
Regulated, centralized crypto exchanges provide digital currency investors with a safer platform, where many cryptocurrencies can be bought and sold. Decentralized finance remains an unstable environment that is vulnerable to a variety of scams and scams. But as public and private blockchain networks grow, their reach extends into mainstream finance.
Institutional investors
Leading fintech investment companies: BlackRock, Vanguard Asset Management, JP Morgan Asset Management, BNY Mellon Investment Management
Institutional investors specialize in asset management. They invest capital on behalf of their clients. Services include buying and selling stocks or securities, bonds, mutual funds and investment funds. They have extensive market research knowledge and today use the latest technologies to read the markets and assess behavior through AI data science.
Digital payments
Leading providers of digital payments: PayPal, Stripe, Adyen, Wise
The digital payment area has expanded enormously in the last three years. The pandemic led to more customers requesting contactless services, while commercial businesses have also streamlined their transactions. Faster, safer, cheaper payments are also increasingly customer-friendly, with increasing options for mobile payments, QR code payments, cross-border transactions and blockchain technology transactions. The increase in the number of remittance companies also reflects an increasingly mobile global population that demands seamless transaction services across continents.
