Using smartphones, for mobile banking, investing services, and cryptocurrency are examples of how these technologies are aiming to make financial services more accessible to the general public.
FinTech companies utilize widely available technology, like payment apps, as well as more complex software applications, such as artificial intelligence and big data. So let's have a quick look at some others.
Some technologies you may already know: - Blockchain
- Cryptocurrency
- Bitcoin
Disruptive innovation Disruptive innovation happens whenever new technologies alter the way markets operate.
Though not exclusively a FinTech term, it's often used to describe events in the financial services where technological developments force financial institutions to rethink their approach to the industry.
Initial coin offering An initial coin offering (ICO) is a crowdfunding measure for start-ups that use blockchain.
It involves the selling of a start-up's cryptocurrency units in return for cash.ICOs are similar to initial public offerings (IPOs), where the shares of a company are sold to investors for the first time.
But ICOs differ from IPOs in that they deal with supporters of a project rather than investors, making the investment more similar to a crowdfunding experiment.
Robo-advisor Robo-advisors are platforms that automate investment advice using financial algorithms. They limit the need for human investment managers, thereby cutting down on the cost of managing a portfolio.