History of the emergence of the fintech industry
Many people mistakenly believe that FinTech was created in the 1980s due to the growing phenomenon of computerization. With the proliferation of computers, new solutions began to appear to simplify and automate banking processes. In fact, the industry’s beginnings date back to the 1950s, when the first credit cards were used. Ten years later, the first ATM was built, which is also one of the achievements of the FinTech sector. The big breakthrough came in the 90s with the development of the Internet. It was during this decade that the digitalization of financial services began. During the 2007-2009 global financial crisis, many people lost confidence in traditional banking and began looking for new ways to store money and make payments.
During this time, FinTech companies acquired many new clients and experienced a new boom. However, the biggest revolution began after 2010, when the use of smartphones with Internet access was already on the agenda. Currently, the FinTech industry continues to develop dynamically and from year to year we see an increase in the number of applications offered, including mobile payments, applications of the blockchain ecosystem or microloans. The 2020 report shows that up to 73% of smartphone users use at least one application to manage their funds. Mobile FinTech solutions are valued primarily for their convenience and ease of use, as well as for constant access to finance.
Benefits of using solutions from the FinTech industry – iTizzi, Ukraine
ITizzi, Kiev, Vinnytsia often offers FinTech solutions that compete with traditional banking services. FinTech companies, compared to financial institutions, do not necessarily offer a full range of products and services targeted at different clients, but can focus entirely on one problem and find the best solution for it. An example is Kiva, which has created a platform for providing interest-free microloans. On the site you can apply for a loan of up to ten thousand dollars.
Price very often plays an important role in the purchasing decision. Many fintech companies offer products at a lower price than their traditional counterparts. This is due to the introduction of innovations, the use of newer and more efficient technologies or algorithms that fully automate a specific business process. In this way, the program replaces human labor and companies benefit from the savings by hiring fewer employees.
An example of a product that is cheaper than traditional services is the Atom Finance app, which appropriately allocates a client’s capital and manages his portfolio of assets. The program automatically invests in various funds according to user preferences and constantly analyzes changes in his wallet. By replacing the work of investment advisers and eliminating the need for branches, the company offers its clients products at attractive prices.
The use of some banking services is often associated with a conversation with a bank representative, an obligation to comply with strict requirements and signing a stack of documents. Not only does it take a long time, the bank can also refuse to issue a loan for non-obvious reasons. FinTech solutions come to the rescue, offering their services via the Internet.
To use most FinTech services, you only need internet access. Additionally, the services can be used at any time of the day or night. This important aspect is appreciated primarily by people who have many responsibilities during the day and who find it difficult to find time to visit the bank. It is worth emphasizing that FinTech services are available to more people, because in order to use them, you need to meet fewer requirements than those used in banks.
ITizzi offers a wide range of FinTech services in Ukraine, Odessa, Lviv: blockchain and cryptocurrency development, crowdfunding platforms, InsurTech, robo-consultants development, mobile payment applications implementation. Contact us. We will be happy to discuss your needs and prepare a commercial proposal.
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