Fintech as an alternative to traditional bank financing are playing an important role in debt collection management.
In the management of debt collection, delinquents have a new enemy in the emerging phenomenon of fintech . At the same time, the traditional companies in the world dedicated to debt collection have found in these technological entities that also fight against delinquency a competition that is monopolizing the largest investments, especially in the United States.
But what are fintech? What is its importance? Are they also relevant in the world of recovery and payment management companies?
What are fintech?
With the term fintech we refer to all those technological initiatives related to the financial world, which have been emerging in recent times, as technical innovations and the use of the Internet have allowed the birth of new modalities of financial services .
To understand the importance that these companies are acquiring, it is enough to mention that, according to data published by the Financial Times, investments in these types of entities have increased to the point of setting a record last year of 4.850 million dollars , and could put at risk more than 4.7 billion dollars in revenue as well as 47,000 million in profits from companies that use traditional media in the financial field.
To such an extent the interest in this type of startups has grown, that the main executives of the US banking sector are already abandoning the old objectives for their investments and are betting without dissimulation for the newly created fintech .
All of them have rejected or abandoned succulent positions in important firms, to bet on financial startups that, in some cases reach astronomical values .
So much so, that it is already beginning to speak of a bubble in the valuation of these companies in North America, although everything suggests that, as the sector matures and settles, it will gradually deflate.
Types of fintech
The newspaper Expansión makes a list of the groups that mainly include emerging companies considered fintech :
- Mobile transactions : Develop new ways to make small payments between individuals through mobile platforms.
- P2P online credits : They provide intermediation services between P2P online credit claimants and investors.
- “Mobile wallets”: Provision of applications on mobile devices for card payment.
- Virtual currencies : Use of bitcoin for online payment management.
- Money transfers : They offer new ways of sending money to people in other countries (family, friends …).
- P2P “retail commerce” online credits : They offer technological solutions for the “retail” sector.
- “ Equity crowdfunding ”: Online intermediation services between investors and startups.
- Stock trading : They serve private systems for trading securities.
- Technological solutions for financial institutions : They seek greater collaboration between financial entities and their business clients, through different and innovative tools and digital platforms.
- Mobile financial solutions in developing countries : They deal with the development of mobile financial services for banking, financial and telecommunications entities in developing countries.
- Financial market data : Companies dedicated to the communication of financial data, such as Isabel Archer, are one of the main fintech groups.
The statups belonging to these groups of fintech companies are emerging strongly in the market and, although in Spain the overvaluation phenomenon has not occurred in the same way on the other side of the Atlantic.