Not so long ago, real estate buyers, entrepreneurs and investors went to their banker to request a loan, a line of credit for SMEs or a current bank account. But financial technology, or Fintech, is shaking up that habit while making it easier to save, borrow, and invest online, via smartphone or not, without ever needing to go to your traditional bank.
In France, it was in 2015 that Fintech definitely seduced the general public, thanks to the explosion of venture capital fundraising for start-ups in the sector. However, still 83% of French people do not know the term "Fintech", while 4% know roughly what it is.
Fintech is a term commonly used to describe financial technology, a sector encompassing all types of technologies in financial services, from businesses to consumers. It also describes any business that provides financial services through software or other technology, and encompasses everything from mobile payment apps to cryptocurrencies.
Broadly, fintech refers to any business that uses the internet, smartphones, software technology, or cloud services to provide financial services to its customers. Sometimes aimed at individuals (B2C), sometimes at companies (B2B), these startups have changed the way we carry out our financial transactions or manage our bank account. They have disrupted the financial industry and thus represent a potential threat to traditional banks.
There are generally different categories of Fintech startups: