According to the report by Allied Market Research, the market size of the fintech sector globally was valued at $110.57 billion in 2020. It is projected to grow at a CAGR of 20.3% from 2021 to 2030 and reach $698.48 billion by 2030.

The increased demand for digital transactions globally is driving the growth of the fintech sector. These digital platforms have changed the way we transact. Here are some types of fintech companies that are changing the finance sector:

1. Mobile Payment Platforms:

The affordability of smartphones and the internet and a greater push towards digitization globally are some of the factors that lead to the rise of mobile payment platforms. These platforms provide the ease of making payments whenever and wherever right from your mobile.

Is it to say that it has replaced cash payments? Well, not completely, but to a very large extent. The internet has opened the doors for businesses and people to send money to & receive from anywhere in the world. This has enabled businesses to provide their services globally without having to worry about the tedious process by banks for processing international payments.

2. Online Lending Platforms:

Another fintech revolution happened in the lending sector. For a small and medium scale business, procuring a loan from the bank was a cumbersome process that hindered their growth. Additionally, the rise of expenses compared to income created a credit gap of smaller amounts that banks weren’t ready to fulfill. This situation gave rise to startups that provide loans both short-term and long-term. The upside is that the process of credit assessment and documentation was carried out online without any paperwork.

So if you are in urgent need of some amount, there are these platforms with which you could get a loan disbursed in as sooner as 15 minutes.

3. Online Trading Platforms:

Earlier, stock trading was confined to brokers and traders. There was a lesser scope for the general public to get involved in trading. As a result, there was a negative perception regarding stock trading in many countries. The fintech sector identified this problem giving rise to startups that not only created awareness among the masses about the positives of stock trading but with technology, the startups made the participation of the public easy. This has resulted in a surge in the number of people who are participating and trading on the stock market.

4. Online Investment Platforms:

Investment is a need of every individual but finding the right investment avenues that are in line with your investment goals was a challenge. Mutual funds, SIPs, etc. have been a buzzword for a long time but figuring the information about all of them from individual banks was a time-consuming process. Additionally, comparing various options and choosing the one that fits your goal needed a lot of acumen, which was possessed by a very few.

In this fast-paced life, people didn’t have time to connect with each company to figure out their offering, it gave rise to a new type of startups in the fintech sector. These startups created online investment platforms that aggregated the information related to various investment avenues in one place and enabled users to make informed decisions.

5. Crypto Exchange Platforms:

Cryptocurrency has been a buzzword lately. The staggering growth has resulted in millions of people flocking to invest and trade in cryptocurrencies. This resulted in a new tide in the fintech sector with the rise of cryptocurrency exchange platforms globally. According to statistics, there are roughly 380 cryptocurrency exchanges globally.

6. Online Insurance Platforms:

Given the adoption of technology in the finance sector, the insurance sector wasn’t going to be left behind. Similar to the problems with investment options, insurance is everyone’s need but figuring the best option according to the need, and burdensome process that followed to get the insurance created hassles.

This gave rise to insuretech startups, a subset of the fintech sector. These startups created online insurance platforms that made it easy to not only compare insurance policies and their offering, but the process of getting it lasted only a few minutes. Moreover, through these platforms, the claims get disbursed faster.

7. Buy Now Pay Later Platforms:

Several changes in the lifestyle of people increased expenses and the wish to own expensive things remained unfulfilled as incomes couldn’t support it. This problem persisted for students and adults alike. These ‘Buy Now Pay Later’ platforms emerged in the fintech space. These platforms enable you to purchase things that you want to and pay in easy installments in the months that followed.

This short-term credit line enables you to fulfill all your wishes of possessing the things that you have dreamt of.

8. Credit Card Solutions:

The credit score is an important parameter to establish your creditworthiness. Credit cardholders often face the challenge of missing their due dates as it is challenging to track all the due dates. The fintech sector saw the rise of credit card solution startups, these platforms tracked all those dates and sent frequent reminders to the cardholders for the same. This drastically reduced the chances of you missing the payments, what’s more? These platforms provide an option to automate these payments by linking your bank accounts.

Conclusion:

Digitization has accelerated the fintech industry and the demand for it would only rise. These solutions have changed how the finance industry operates and how we transact. These solutions have added a level of comfort in our lives by easing out the most critical parts like loans, payments, insurance, etc.

What are your thoughts on this? Let us know in the comments below.

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