Fintech(Financial technology) is a new industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public.
Difference Between Fintech and Banks
There are banks which are fintechs and the only difference is that they innovate faster, and build their businesses on fresh and new technology while minimizing legacy buildup as much as possible. Fintech companies may work with a bank or they may not. There are differences between fintech and banks.
Fintech is financial services that are delivered to the customers by using technology. they are mobile payments, lending, and borrowing, and fund-raising.ompanies sell software or other technology to banks. So, for example, they might provide the accounting software that banks use to track mortgages or checking deposits. Fintech uses technology in a better way to make people feel convenient living in the modern age. it helps SMEs to acquire some funds. SMEs will not afford to do a loan with banks because of some loans and other fees. Also, it helps people who are unbanked but desire to buy or sell online with their services. Only by using the mobile phone, all these unbanked people can join other online buyers and follow the trends.
Banks keep everything confidential.they have as their product transaction management, traditionally taking demand & time deposits, such as checking accounts or certificates of deposit; and giving out loans, such as mortgages and business loans; and more recently branching into more esoteric transactions. They all use financial technology to enable them to do all of this. They will provide services that customers need. Everyone already knows about banks, but not all understand how a bank works. The bank acts as an intermediary between two parties. They will help both sides to do a transaction or any services. Banks provide many services such as savings, loans, transfer of funds and much more. Some said that banks would disappear in the future. bank dominates on lending, investing and deposits, they will sustain in the market. Banks basically will keep the customer’s information and will not easily give it to other parties. So the customer will feel more secure and safe doing the transaction with the bank.