FinTech Explained: Financial Technology for Business
When we think of cutting-edge, technology-driven start-ups, we often conjure up ideas of a software company started in a dorm room, a travel company or an internet search engine - but the reach of technology knows no bounds. The truth is, even traditional sectors like finance are being completely disrupted by smart technology.
Seamless communication and money transfers coupled with in-depth analysis and access to big data have given rise to a new breed of lender that caters to the next generation. Financial technology, or FinTech, is a burgeoning field that is changing the flow and aggregation of money worldwide. We are proud to be at the forefront of this movement in Canada here at Lendified, and want to cue you in on exactly what FinTech is.
What is Financial Technology?
FinTech encompasses any financial services that operate and deliver services based on modern software and other technology. This could mean everything from lending, investment, and payments to new initiatives for financial literacy or even new world currencies like Bitcoin. The ease of incorporating, communicating, and transferring funds plus the in-depth analysis that smart software brings has given rise to a new wave of startups that are providing financial services. Numerous smaller lenders that cater to unique customers based on data analysis is a stark contrast to the traditional financial sector.
Offering convenience, simplicity and enhanced security, it’s easy to see why FinTech companies appeal to modern small businesses and consumers.
A Burgeoning Market
By the end of the first decade of the 21st century, the financial technology sector was seeing investment of nearly $1 billion dollars annually spread across a few important global financial sectors. By 2013 that number was $3 billion. Increasing awareness, utility, and technology have made this a rapidly growing market, particularly in innovative cities across Canada and the USA to the UK, Sweden and the Netherlands. We are now seeing FinTech across a range of industries such as:
The Lendified Advantage
As a Canadian small business loans leader in the FinTech industry, we combine cutting-edge technology and 21st-century thinking with a wealth of knowledge from the traditional financial marketplace.
Financial technology has closed gaps in traditional lending, and with Lendified it is now possible to access capital for your small business quickly and easily. What used to be a lengthy process can now be accomplished entirely online, and with same-day approval. By leveraging the technological advances in this sector, we can help businesses overcome short-term obstacles or take advantage of growth opportunities with streamlined loans for small businesses in Canada.
After having reshaped every aspect of our daily lives, technology has moved on to the business world. Traditional business sectors are slowly being absorbed by advances in communication, analysis and data transfer. FinTech is part of an evolution in the way we handle money, and a complement to the range of services offered by traditional banks.
To get more small business resources, sign up for our newsletter!
Enjoy this article? Don’t forget to share.
About the Author
Lendified is Canada's premier online lender for small businesses. The company was founded by former bank executives dedicated to provide businesses with fast, easy, and affordable financing. The Lendified team regularly produces blogs and guides to help small business owners succeed.