The new trend in the world of finance is to manage everything through the use of technology. This is how new business models have emerged in companies that seek to respond to the needs of an increasingly computer-impaired public. the new ways of the financial market, including the use of cryptocurrencies, ushering in a new era.

However, this current trend in terms of the use of cryptocurrencies as usual means of payment has not always been at the same level, there have been times when the cryptocurrency market has declined, with decreases in the price of the same, however, well-established companies have managed to survive, as we mentioned in the previous article entitled fintech companies that have survived the winter of cryptocurrencies where we mentioned among the most prominent Mercury Cash, that thanks to its financial strength and legal stability , has managed to remain in force despite the fluctuations of the market.

What are fintech companies?

Before mentioning the types of fintech companies that exist, it is good to be clear about the concept. A fintech company, depending on the type of operation they carry out, can be considered as the new banks that operate with state-of-the-art technology in order to carry out their transactions and meet the demands of their clients.

A fintech company belongs to what can be classified as the financial technology market, which includes new business models and new foreign exchange transactions between “real” money, also known as “fiat money” and the new digital money, represented in some of the more than 1500 types of cryptocurrencies that exist today.

Classification of Fintech Companies according to their type

As expected, fintech companies provide different financial services and this has allowed for a sort of classification according to them. Below we mention some of the best known so far, however, thanks to the constant growth of financial technology companies, it is possible that these types expand very soon, thanks to the variety of services that could be added.

Fintech crowdfunding companies

These companies aim to raise funds and within them can be divided into four types, depending on the way they work: based on rewards that is what is done hoping to receive some compensation or prize for a donation or financial contribution; equity or capital in which you are part of a company through the purchase of shares, obtaining a share in it.

The other two types of crowdfounding are the crowdlending or crowdfounding of loans that seeks to finance companies or individuals taking into account that there is the possibility of losses due to non-payments, but basically the purpose is to return the money. On the other hand, there are donations in which people give money without expecting anything in return, all for the benefit of social works.

Fintech lending companies

These companies allocate their capital to loans for other companies and even to individuals, with reasonable interest that allows them to obtain benefits. These companies are usually classified according to the destination of the funds: personal, which must be repaid in no more than 30 days and is almost always micro credits; for companies: with a medium capital that aims to finance startups and ventures and, finally, a new type that is the mortgage lending that has not yet been heavily exploited by companies but will probably soon be in the financial market.

Financial services for individuals

This type of Fintech Company offers its service to individuals, within them you can find financial aggregates, mobile payment applications for online payments in physical stores, bank service comparators, funds and investment plans, fintech products and services for individuals. And there are those that offer training or training services in financial technologies.

Financial services for companies

In this type of fintech are financial aggregators, direct debits and remittances, management of company expenses, payment gateways, foreign currencies and international payments, agencies, payment entities (all online), and POS or platform to accept payments with credit cards, countries As Spain already have most of these financial services, however, not all are available in Latin America.

Investment tools

In this category of fintech companies is where you will find automated financial advice that are also known as robo advisors, communities of investors who meet to place their capital as a fund either for the emergence of new companies or for the financing of projects or social causes . There are also trading tools that help identify when the best time to invest and financial platforms for banks is.

Other types of fintech companies are those of cryptocurrencies and blockchain that are recognized as one of the fastest growing in the area thanks to the constant emergence of cryptocurrencies and fintech companies of identity verification, frauds and scorings that help all of the above to safeguard its capital and to maintain security within this type of digital economy.

What do you think about this topic? Did you know these types of fintech companies?

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