New in FinTech
InsureTech is an insurance offering automated products: mobile apps, payout automation, IoT interactions. For example: US auto insurance companies sell insurance on a “telematics” basis.
This is when the client’s driving style is controlled using his smartphone or a “black box” installed in the car itself. This information can be used to form the payment amount for the next insurance policy.
Artificial intelligence – this area is still poorly developed, but all financial companies are determined to reduce personnel costs at its expense. Amazon launched an AI-powered algorithm in 2014. As many as 500 computer models had to search and select resumes in open databases of recruiting companies based on coincidences. But in 2015, developers noticed that the algorithm discriminates against female candidates. They made adjustments, but could not give guarantees that there would be no further errors, and were forced to abandon the HR algorithm.
Crowdfunding – the direction creates platforms for collective financing, allows product creators and investors to meet for further cooperation. The most popular are Kickstarter and Indiegogo.
Neobanks – solutions in the field of banking services. Most often they are created in the form of mobile applications that replace the services of classic banks. They are focused on clients, do not need physical branches. Disadvantages of neobanks: low level of customer confidence and lack of clear regulation.
Cryptocurrencies are a type of digital currency that works without a central payment system, completely automatically, and which is mined by miners using powerful computing systems. A lot of startups, exchanges, exchangers and investment platforms are built on cryptocurrency, millions of dollars are capitalized in them, but financial experts cannot clearly see the future of this industry.
Blockchain is a technology of distributed data ledgers. Each participant in its chain is his own server, which confirms the legitimacy of the operations of other users. The technology is distinguished by its reliability, the bitcoin cryptocurrency is built on it. This technology has spawned many solutions and startups. For example, it is used for smart contracts, copyright proof, biometric security, trade and deals, energy distribution, and even voting. At our academy, we use this technology to protect the authenticity of diplomas and certificates, as well as record the history of their receipt.
Fintech and Techfin
Fintech is a term for financial companies that are implementing digital tools in order to provide their clients with optimal services and at the same time reduce their costs. An example of such services is banking services through mobile applications from companies. Fintech is attractive because it can quickly and with minimal effort on the part of the user to solve his problems and needs. This could not be overlooked by giant companies such as Google, Apple, Amazon and Facebook. They also added financial services to the list of basic services: online wallets, sending money in a messenger, and more. So they turned into tech companies. Consumers who have grown up with digital devices in their hands will actively use products from tech companies and fintech startups. Companies and financial institutions that are just eyeing fintech tools will have to accelerate their adoption in the pursuit of profit and customer favor. Both will need professionals who can create and implement products and changes to win customer acceptance.