Examples & Use Cases of FinTech Fintech, or financial technology, is exactly what it sounds like: the technology used in the financial world, helping people access and manage their money through mobile devices and desktop computers. Whether it's their bank's mobile app or an online round-up-your-change investment company, all companies in the fintech industry are using some of the latest financial technology, such as artificial intelligence, machine learning, and transaction data enrichment. These are a few examples of companies that are using the latest financial technology to help their customers and users better manage their finances, improve their credit scores, reduce their debt, and save for their future.
A Few Great Examples of Fintech in Action
Some of these companies are Envestnet | Yodlee® clients using our various APIs and services; others are just well known in their particular industry. But these are just a sampling of the many fintech companies changing the financial industry and financial institutions around the world. Companies like Kabbage and Borrowell (a Canadian lender) are skipping the banks and bringing peer-to-peer lending to people. Rather than going to banks for loans, borrowers — both personal and small business — are turning to alternative lenders and peer-to-peer lenders like these companies. This is where individuals can pool their money and provide small loans of various amounts, as much as $25,000 in some cases, and earn anywhere from 4% – 10% interest. Peer-to-peer lending is also creating an opportunity for investors to invest in different clients, amounts, and even niches. For all other banking, there are several online-only bank options, including Atom Bank (a UK-based bank that only works via mobile app), GoBank (a US-based bank that lets people choose their fee structure, between $0 – $9 per month), and Charles Schwab Bank (a bank that charges no monthly service fee and has no minimum balance requirement.) In all cases, you manage your finances, including deposits and withdrawals via a mobile app or web portal. There are no branches or physical locations you can visit. There are several investment options, including investment management for wealth advisors, such as Addepar. Some AI-based fintech solutions are letting wealth managers serve a larger number of clients by analyzing their individual portfolios' performance and then making personalized recommendations for future investing. There are also invest-your-spare-change apps like Acorns and Carrot (a Canadian app) that help people invest and save. Of course, when we think of mobile fintech, most people think of money transferring and payment apps like PayPal, Venmo, Cash, and even Apple Pay and Google Pay. These apps let you send and receive money between friends, transfer it to your bank account, or even pay for things at the register. Finally, when it comes to personal management, there are a variety of different apps available: There's Mint, an all-in-one app that helps you set a budget, track your spending, and set savings goals. You can connect your bank accounts and monthly bills so you can manage everything at once. You can also use Prism for tracking bills, receiving reminders, and even paying your bills. You can use Birch to keep track of your credit card rewards programs so you can optimize your rewards earning. And if you have trouble sticking with a budget, there's You Need A Budget, which helps you — you guessed it — set and stick to a budget. If you would like to learn how you can use different fintech technologies for your own fintech startup, app, or financial institution, please visit the Envestnet | Yodlee website for more information. You can also contact us if you have any questions about our platform API, financial applications, and data offerings.
