Chapter7.1 Flashcards
Define FinTech
A business that aims to provide financial services through the use of software and modern technology
Describe Payments
- Payments back-end infrastructure
– Payment processing providers for accepting electronic payments, point of sales terminals, card providers and mobile payments - Customer payments
– Enable payers to pay on the go and peer to peer transfer of money using mobile wallets and seamless payment
– Customer wants:
1. Personalized profile and personalized quicklinks
2. Payments made easier
3. Touch ID
4. Instant account opening
- Cryptocurrency
– Provide access to digital currency markets like bitcoin
Describe deposits and lending
- Personal finance
– Focus on individual, household, budgeting as well as managing financial decisions and activities - Digital banking
– Interactive online services to do their banking - Alternative lending
– Provides customers with credit scores for peer to peer loans without having to go to a financial institution
Investment and management
- Private investment management
– Automated process and trading algorithm for private investors to trade and manage their assets - Institutional investment management
– Tools for institutional clients to manage their investment portfolios
Capital raising
Provide customers with access to investments in return in exchange rates or for equity
1. Crowdfunding
– Focus on helping companies or entrepreneurs find to raise capital for their products or social causes
- Alternative Financing
– Innovative ways to raise capital without using financial institution for SMB
Market provisioning
Provide transparency and accessibility of information in market so sellers and buyers can connect with each other more easily and compare two different product or service
- Comparison and Matchmaking
– Aggregator platforms for customers to compare and identify different financial products - Financial Social Networks
– Facilitate interaction between buyers and sellers using social networks to improve financial literacy and inclusion
Enterprise financial software
Software made for financial sector
- Collaboration and workflow software
– Cloud based platforms that enable better process of communication and efficiency of internal processes - Accounting and invoicing software
– Improve time and resources spent on bookkeeping and invoicing process - Data and analytics software
– Fight off fraud security issues and cyber crime
Benefits of fintech
- Better customer experience
- Better convenience
- Cost savings
- Financial inclusion