Fintech, fintech, fintech – it’s everywhere at the moment, but what does it all mean? We hear about fintech companies disrupting traditional banking and transforming the way we all bank. Here at Monese, we are using our advanced fintech knowledge to revolutionise the way the sector behaves. We are allowing a huge swathe of underbanked people (as many as 1.5 million people in Britain alone) to get banked and not be financially excluded. We are also making it much easier for mobile people to open a UK current account, get paid, send and receive money without having to provide difficult to acquire i.d. With Monese you can have your account open in as little as 120 seconds, and you only need your passport or national i.d to sign up.
When it comes to Fintech terminology, many assume that everyone already knows what they are talking about, but it’s not always so simple. Here’s our guide on the fintech terminology you’ll hear about the most, and what they actually mean.
First of all is the most obvious – Fintech. Fintech is a portmanteau of finance and technology. Fintech companies champion the use advanced software and technology within the finance sector. Fintech companies are known for their mobile offerings and their ability to challenge traditional banking.
Underbanked people are those who have been locked out of traditional banking or services. This may be down to a whole host of various reasons including bankruptcy or bad credit history. One of the most important challenges in fintech is finding a way to serve the underbanked.
A digital native is someone who has grown up in the age of digital technology. This demographic is used to having services in the palm of their hands and expect them to be always on, something which traditional banks seldom offer. They are a huge market and vital to the growth of fintech.
This is a digital currency that uses cryptography for regulation and security. It’s decentralised, meaning there is no central entity that oversees processes, in it’s place is the blockchain. Just like regular currency, there are many different types of cryptocurrencies including Bitcoin, Ethereum and Ripple. For more information check out our guide here.
This is an economic model that is based on the sharing, renting and swapping of services. It’s also known as the ‘sharing economy’. The best examples are companies such as Airbnb and Kickstarter. It’s a growing area within fintech via solutions such as peer-to-peer lending.