What is a Fintech?

This module aims to discuss how a Fintech is developed and how this mindset differs from the traditional approach to business development, propositions, and improvements in a bank. It helps professionals explore alternative solutions and enhances the competitiveness of institutions. Once the bank realises that there are different ways to do what has been done traditionally, the how is an important factor to be taken in consideration, and it may affect the brand and culture, solutions must be thought if to be successful.

Fintech is the sum of two words, financial and technology: it is technology and innovation applied to financial services and applies to any financial service, and not just banks.

Fintechs generally offer their services through digital channels such as apps or websites. This enables customers to use the services and perform operations on their smartphones, feature phones, or computers without the need for a branch or physical store. Few fintechs have a physical presence, with all service and sales performed either through the internet or phone centres.

Fintechs are growing in importance and size around the world, and traditional banks, insurance companies and payment companies are reacting to this threat to their businesses. However, most traditional banks, insurance and payment companies are sticking to their heavy, bureaucratic and complex operational and commercial structures, providing an opportunity to fintechs, which are attracting more clients every day.