See how fintechs have revolutionised the financial market, and learn how the financial landscape as a whole has changed with their emergence
In recent years, we have witnessed a revolution in the financial sector driven by the rise of fintechs. These financial start-ups, characterised by technological innovation and operational agility, have radically transformed the way we deal with finance.
By combining advanced technology with traditional financial services, fintechs have challenged established financial institutions and democratised access to a variety of financial products and services.
One of the most striking features of fintechs is their ability to meet the needs of a diverse audience, from individual consumers to small businesses.
With intuitive apps and accessible online platforms, these companies have simplified complex processes such as payments, loans, investments and personal financial management.
In addition, fintechs have been pioneers in introducing innovative solutions, such as artificial intelligence, big data analysis and blockchain, to improve the efficiency and security of financial transactions.
These technologies have made it possible to automate processes, reduce operating costs and create personalised experiences for users.
Another key aspect of the fintech revolution is its emphasis on financial inclusion. By offering accessible and flexible services, many fintechs have reached segments of the population previously neglected by the traditional financial system, such as the unbanked and underserved.
All this has contributed significantly to increasing financial inclusion and promoting equal economic opportunities.
Read on to learn more about the concept and advantages of fintechs.
What are fintechs?
You've probably heard this term or come across it in countless adverts or readings about the financial market.
The explanation of the word is quite simple. It comes from the abbreviation of "financial" and "technology", i.e. financial technology. In practice, we understand that fintechs are start-ups or companies whose aim is to revolutionise the traditional financial sector, improving alternatives and giving their customers more autonomy.
Before the fintech boom in Brazil and around the world, it was thought that the big banks wouldn't lose size market as we see them today. But the truth is that the innovation and practicality has been so great that most people are already adopting a service from one of the (thousands) of fintechs that exist. The big question is: will the big banks lose their monopoly on the sector once and for all?
Advantages of a fintech
Can you imagine doing all your banking like paying bills, applying for cards, increasing your credit limit and even applying for a loan, all from your mobile phone? The future has arrived so fast it's like a joke.
But it's the truth. Fintechs are revolutionising the banking sector with their technologies, leaving many people incredulous that this system works.
This transformation is happening so fast that even traditional banks, however wealthy they may be, have lagged behind in spite of these changes. Today, they are racing against time to adapt to this new market, creating their own digital banks and looking for new ways to make life easier for their customers.
Free digital accounts or credit cards with no annual fee are just some of the advantages that a fintech offers its customers. Technology provides this kind of advantage because, unlike traditional banks, fintechs were born in the digital world.
The physical costs of a bank branch or other costs involving all the traditional processes are either non-existent or practically irrelevant for these companies. That's why they are able to offer advantages that no other traditional bank could before.
Which fintechs are on the market?
There are more than 1,000 fintechs in Brazil today, according to the District's FinTech Mining Report 2021. As there are countless startups and companies that stand out in this sector, we're going to outline the 10 that have been most relevant in recent years, some of which have become true unicorns:
-> Nubank
-> Pagseguro
-> PicPay
-> Creditas
-> Blue Account
-> Fifth Floor
-> Inter Bank
-> Méliuz
-> C6 Bank
What can we expect from fintechs in the coming years?
We know that innovation and technology are increasingly present in our lives. Year after year we see companies revolutionising the sectors in which they operate. It won't be any different for the financial sector, which gains new entrants to this market year after year, with new possibilities and new services for the benefit of society.
We welcome this new demand, as it will have a considerable impact on the quality of service and prices, since the more competition there is in this market, the better the offer will become. Let's follow this revolution closely!
Read also: The main investment strategies
Attention!
Valor e Capital is a purely informative site aimed at enriching our users with financial content, we are not linked to any company and we do not make suggestions for buying or selling assets, do not share personal information in the comments.
