Fintech is the contraction of “finance” and “technology.” It, therefore, designates start-ups and other companies that provide financial and banking services to individuals using their technological skills. In short, it is the alliance of finance and digital technologies. So, what are the latest technological advances in this area?
Open banking, neo-banks and online banking
Open banking consists of sharing banking data between banks and financial services. Concretely, banks will have the right to share users’ banking data to allow their users to benefit from services adapted to their needs. This file sharing is done via an API, in other words, a platform where data circulates that are linked. Open banking is reshaping the banking ecosystem by giving banks a new role. It also fully includes “neo banks” competing with old-style banks. New players in the banking landscape, these banks rely on the simplicity, adaptability and speed of their banking services. In an interview, Franck Peltier, a specialist in these issues, underlines how much these new banks can support digital transformation.
Blockchain is one of the major innovations of recent years. It is a technology that allows the exchange of information in an ultra-secure and encrypted way. It is deemed inviolable because a specific cipher is attached to each transaction that passes through the chain, thus giving it a secure digital identity. From then on, a simple attempt at fraud or modification upsets the whole chain. A hacker can, therefore, hardly go unnoticed! Banks and all professions that need to exchange strictly confidential information securely could eventually use the blockchain.
Cryptocurrencies and payment applications
You probably know bitcoin? This cryptocurrency is one of the first currencies on the web. You probably know less that it is based on the blockchain system. Today other cryptocurrencies or virtual currencies exist, for example, Ethereum. Despite a sometimes sulfurous reputation, these currencies have become widely democratized and attract a wider audience.
Similarly, online payment applications are very popular thanks to their convenience. In addition, the proliferation of smartphones has facilitated the expansion of these money transfers via mobile. A booming sector in France and the United States since the 2010s, FinTech should develop further in the coming years.