Technology has changed almost every aspect of our lives, and finance is no exception. Tech giants are rolling out new solutions to improve customer service and simplify financial transactions. People have made a smooth transition from traditional to digital banking thanks to technology. We all use apps to manage our finances and have almost forgotten how it used to be. Even money has gone digital. Despite the similarities, fintech and techfin finance are different concepts.
So it is worth separating the concepts – FinTech and High-tech finance – and finding their differences and perspectives.
The financial industry uses technology to provide high-quality services, increase financial profits and reduce costs. The most common example of fintech is the online banking applications offered by most banks. Fintech includes neo-banks popular in the US and Europe and well-known companies such as PayPal and Venmo. These services simplify the process of managing our money and are used by almost everyone.
Fintech, like Al, adapts to automated customer service technology. To improve its services, fintech focuses on the following details:
- Use of chatbots.
- Artificial intelligence interfaces
- Helping clients in performing basic tasks.
- Reduction of personnel costs.
“Learning” apps learn about user habits that are often hidden from themselves and engage users in learning games to improve their automatic, unconscious spending and saving decisions.
If you are going to use Avis car hire at Glasgow Airport, you can pay for the service using online banking. This type of transfer is very comfortable, as you can choose the route and stop times yourself. You can independently select the model and class of the car, its capacity, type of gearbox.
To rent, you need to have the following:
- Printed voucher.
- International driver’s license.
- Original national identity card.
- An identity card with a photo.
- Credit card.
Techfin is rarely mentioned because the concept has only recently emerged. High-tech refers to a technology company that, along with its core technology-based products, additionally offers financial services. At the same time, the company works on improving financial products to make them as convenient as possible for the end user.
Google, Amazon, Apple, Facebook, and Uber are well-known examples of technology financing. These are well-known IT companies that at some stage decided to launch financial services. For example, Apple launched Apple Pay, which is the leader in the global trend of contactless payments.
Now that millions of people around the world use Apple’s payment system, this option is available on many sites and applications. Another example of technology is Facebook, which announced the launch of its digital currency, Libra. Currency can be used to pay for goods and services and is also useful for travelers as they do not need to exchange currency abroad.
Uber launched a new Uber Money service a few years ago. The service allows drivers and passengers to issue debit or credit cards. Such services help to track expenses for car hire possibilities or to get cashback on gasoline.
As you can see, the difference between fintech and tech companies is clear. The former seeks to improve the tools available to the financial sector, while the latter seeks to take full advantage of the latest technologies, creating alternatives to traditional financial services.
Advantages of fintech companies include:
- Large databases.
- Technological capabilities.
- Flexibility and customer loyalty to the brand.
- Allow competing with financial companies, including banks.
While tech giants are often eager to partner with banks, digital services need to be proactive. They develop and make efforts to increase customer loyalty.