The development of increasingly sophisticated technology also affects various developments in all fields and types of community needs. One of them is financial needs, now people have the convenience of the Financial Technology (Fintech) industry. Because this field has progress very rapidly.
The presence of various types of Fintech companies is a service innovation in the field of financial services that aims to help people and reach their consumers to make transactions easier without having to make face-to-face meetings.
According to Fintech reports in the world, in collaboration with well-known companies in Europe, the fintech industry in Europe in 2017 received transactions of 182 million US dollars. Of these, Fintech is dominated by loans.
Types Of Financial Technology
Fintech technology can be divided into business fields, applications, and products related to providing open financial services.
There are so many financial needs of the community which of course encourage and provide space for companies to emerge to help those needs. Fintech also has a variety of different services.
Fintech companies must have passed or have a license from the International Financial Supervisory Agency and have a Global Financial Stability (FSB) recommendation. Fintech is also divided into 4 types or categories.
Anything ? You can read these reviews as below:
- Payment, Clearing and Settlement.
This category is a service with an online payment system through electronic wallets or digital media payments (Digital Money). With this category, this system has been updated very well by banks and non-bank financial companies. Surely you are already familiar with the types of Fintech in Europe. Because almost all residents in Europe have used digital payment methods in the form of cards or applications.
- Deposits, Loans and Capital Raising.
In the field of fintech, the most commonly used fields are crowdfunding, P2P Lending platforms and Payday Loans. Fintech in the P2P Lending type connects borrowers or lenders (Investors) with borrowers (loan seekers) on one platform. This loan system must have been funded by investors to borrowers, so the advantage of investors is to get the loan interest that is given to the borrower. There are so many investors that you can find in your everyday life. There are even salespeople who offer these loans to your respective homes.
- Market Provisioning (Aggregators).
Aggregators have a function to collect various market information that can be used by companies with the aim of facilitating people’s daily needs. This information can also be used by consumers according to their individual needs. This type of fintech provides product comparisons starting from price, usability, quality and benefits of course. This service certainly makes it very easy for you to make a good decision compared to having to look for each of these products one by one.
- Risk Management And Investment.
This fintech service is one of the areas that will help and create a plan or financial advisor for you, such as online platforms and insurance. If you are planning finances, this can be of interest as educational advice. Then you will explain the things that you have to pay attention to so you don’t experience losses and mistakes during the process. For example, helping you pay more attention to your strengths, weaknesses, quality and investment model that suits you so you don’t experience losses. You can also easily find risk management and investment fintech companies in various references such as on the internet.
Those are the four types of fintech that you should know in the financial business.
Understand The Different Types Of Financial Rules
From an industry regulatory perspective, all types of fintech must be registered and monitored by all types of international financial agencies in their respective countries to avoid fraud. If it is registered, of course, it will have or the company implements several policies and actions including the closure of unregistered or illegal fintechs so that consumers have protection.
Smart legal Consulting is a corporate legal service agency in the financial business industry. This institution has helped many clients in handling matters related to investment law. Foreign company establishments and representative offices also help clients deal with corporate legal compliance and services.
Contact various investment law institutions with the aim of getting legal solutions and your business goals in order to comply with the laws and regulations that apply in this financial business.