Fintech types by sector

Fintech types by sector

Do you wonder what types of Fintech exist? Traditional financial institutions, seeing the sales of their products compromised, have opted for a new customer profiling to achieve a correct commercialization.

In this way, thanks to Fintech, the product can be adapted to a profile, taking advantage of technological resources, and thus giving elasticity to the product.

What is Fintech and which are its main objectives?

First of all, it is necessary to clarify the meaning of the term “Fintech”, which can be understood as the union of two English terms: Finance and Technology. In a sense, it refers to the offering of financial products and services in a fully digital environment.

In other words, Fintech is synonymous with the digitization of the financial sector and all companies that use new technologies to simplify the financial services they offer compared to how banks do it.

Therefore, we could say that the main objectives are the use of digital means to offer new answers to the users of financial products, basing their advantages on simplicity, agility, and security in their handling.

Likewise, the main keys and/or objectives of these new services through Fintechs are simplicity, agility, and security.

Main types of Fintech by areas and sectors

There are numerous types of Fintech according to their activities, but we could say that the most relevant ones are as follows:

• Financing, in which the simple advance and speed mean a change in the market.
• Investment advice in a fast and very personalized way.
• Control of personal finances; This is the case of Fintonic, for example.
• Loans: Allows users to obtain financing in less than 72 hours.
• Financial comparators: Allow users to quickly find out the best product for each type of user.
• Challenger banks and Neobanks: They represent a change in the banking sector, streamlining processes.
• Big data and predictive models.
• Risk management.
• Security and privacy.

Definitely, Fintech Startups are developing a new landscape within the financial market. In addition, the rise of cryptocurrencies has led to the emergence of new investment business models and with it the transformation of investments the development and advancement of Fintech technology.

Most relevant international Fintech Startups according to their sector

We can highlight the following international startups, among many others:

1. Avantcredit (online consumer lending).
2. Betterment (automated investment).
3. Commonbond (P2P lending).
4. Etoro (social investment network).

Most relevant Fintech Startups in Spain

This Fintech ecosystem is increasingly consolidated in Spain, experiencing high growth.

Specifically, the Fintech sector has approximately 463 companies currently operating in Spain. In addition, the Fintech industry in Spain generates more than 12,000 direct technological jobs with high digital skills and the expectations are that the mentioned figure will multiply soon.

Among the most relevant Fintechs in Spain we find: Bitnovo, Zank, Fintonic, PayPro, etc.

Thus, Spain is positioned in Europe as the fourth country in Fintech investment behind Germany, Sweden and France.

From Letslaw, a law firm with professionals specialized in advising Startups and Fintech, as well as data protection, digital law, and intellectual property, we help companies to obtain the necessary licenses to operate in the Fintech market.