A Beginner’s Guide To… FinTech
What is Fintech?
FinTech is a term that’s been smugly thrown around a lot over the last few years, as companies such as PayPal, Monzo, and Trading 212 have taken the online markets by storm with their alternative, ease-of-life offerings to traditional finance norms.
In this guide we’ll unpick what FinTech actually is, what it means, and the ways in which you’ve already integrated it into your life. We’ll also look at how the very blog you’re reading now has incorporated its offerings into our flagship content, and how you might be able to learn a life-changing thing or two from our other sections.
To start off simple; FinTech, short for Financial Technology, is the term generally to characterise new technological alternatives that aim to update established services.
What does this mean?
This means companies like PayPal have become the standard for online payments, Monzo and Revolut offer an online alternative to bricks-and-mortar traditional banks, and Venmo allows you to pay your mates back instantly and easily. These online tools are already everywhere, with apps that allow users to set their own budgets, track spending, and chart their future finances all becoming commonplace in recent years.
Sounds good, right?
The Internet age providing us with modern solutions to decades-old chores.
However, this isn’t all FinTech has come to be known for. You’ve probably heard of Bitcoin, the monetary alternative that has shook the virtual world (as well as the intelligence agencies of governments the world over).
As a result of utilising a complex data-mining process that essentially generates the currency, Bitcoin has been touted as the potential future of money. As the capacity to anonymously buy and sell goods, (mostly) free from governmental restrictions and economic intervention, has won over enthusiasts from all corners of society, though, the less said about some of its dark web-associated uses, the better.
Beyond this, there are more ‘above-board’ exhibitions which can be found in the form of the increasingly hyped ‘blockchain’ technology. Blockchain is a development that, similarly to BitCoin, allows users to protect their personal data, whilst also ensuring their transaction is properly logged and guaranteed within a secure system.
It might not seem like much, but there are some experts claiming that this tech could be rolled out for other more world-changing uses, such as digital voting and medical record keeping.
Now we’ve breezed over the FinTech basics…
This is where it becomes more related to what we’re all about here at 3MT.
One of the fastest-growing utilisations of this new tech has been the rollout of stock-trading smartphone apps. Much of our flagship content here at 3MoneyTalk is centered on explaining and demonstrating to you how we’ve been using these apps to invest, trade, and (sometimes) make money.
In that sense, this whole blog is only possible as a direct result of the developments in financial tech, with many of our other posts also focused on new online releases and consumer tools that can benefit you in everyday life, such as this guide to the best FinTech banks here!
The main takeaway from this is that FinTech is not just the future, but already a growing part of the present day, with the industry expected to grow a whopping 25% year-on-year until at least 2022/23.
For many people, these innovations have already cemented themselves as permanent and crucial fixtures of our daily lives, and with this growing change to a virtual financial world will certainly raise many pivotal questions over how we continue to adapt our finances to the cloud.