With breakthrough technology at our fingertips, new finance services and tools are integrating with some of the world's most advanced digital minds. As a result, fintech services are disrupting a variety of industries from e-commerce, loans, investment and much more.
Here are five that are definitely worth knowing;
E-commerce
This B2B fintech company offers e-commerce businesses a patented payment tool, that enables online retailers to instantly offer monthly installment plans at checkout, on shoppers' existing credit cards.
This service is disrupting the fintech scene in such a positive way that e-commerce businesses should sit up and take note. There is no risk to the merchant since customers use their existing credit card. The service here is an intermediate layer between an e-commerce platform and a pre-existing payment gateway.
And since splitting an order into smaller monthly payments drives larger baskets for businesses, this type of fintech service is proving to be a much more valuable tool for sales compared to discounts and promotions.
Loans
It is almost common knowledge that student loans can be a minefield to navigate around. In fact research has shown that 71% of millennials would rather visit their dentist than their banks. Couple this with the fact that all 4 of the leading banks are in the top 10 least liked brands by millennials and hey presto - a gap in the market for another great fintech service to disrupt the industry.
CommonBond are attempting to make finance more accessible. This student loan marketplace aim to offer better rates, simpler processes and better service across the board. Within a matter of minutes, applicants can find out the rate of a loan on the company website.
CommonBond pay off the borrower's lender and then become the ones being owed to. They offer an intuitive, personal touch when it comes to student finance which is greatly appreciated by the borrowers.
They also organise social meet ups in an attempt to foster a community which will serve as a base for finding job opportunities, and building relationships which they rightly see as a crucial part of the lending industry.
Something that makes this company unique however, is their partnership with Pencils of Promise, an organisation providing students in the developing world with an education. For every degree funded, CommonBond also fund the education of a student in need. This act of giving back to the community means this company is having a positive impact in social change.
Mobile Payment
This Stockholm based fintech company offers mobile payment solutions. Targeted at empowering small businesses, iZettle have created a payment tool that allows small businesses to do business in the same way larger ones do through their point-of-sale app and card reader.
Using the app to helps your business get organised; iZettle lets merchants create a product library which makes it easier for customers to browse and choose an item to purchase. Once items have been chosen, upon checkout this platform allows businesses to take both card and cash payments through mobile or tablet. Additionally, with their receipt printer, customers are given the option to receive receipts by mail or printed.
This service also has follow up tools to optimize the sales process; merchants can receive summaries in order to keep everything organised, and even provide a login for other members of staff within the company.
Money Transfer
This money transferring service is changing the way we send money abroad. With unpredictable and often unfair exchange rates, the amount of money lost in each transaction is staggering. Backed by Sir Richard Branson, Transferwise offer a new way of sending money abroad, emphasising that transferring money no longer requires the high cost reputation it currently holds.
So how does it work? With some claiming it's fairies and unicorns or even good old fashioned magic, the real answer is lies in their buzzword; peer to peer. In simple terms this means exchanging money with those who need your currency.
Think of it as two money pots. One in the currency you have and want to exchange, and one in the currency you'd like to acquire. Customers put money in to one pot, and Transferwise take money out of the other pot to pay the recipient. Without bank admins or any middle-man, it's faster and a lot cheaper than transferring in the traditional way with a bank. In fact, 10 times cheaper to be precise.
Investment
This is an investment platform with a difference that is giving customers the ability to trade like professionals by copying strategies from successful traders. Investing money is complicated with stocks and charts so by sharing their investment strategies in a social community, others are empowered to make the same, or similar investment decisions.
e-Toro gives users an insight in to successful traders' ranking, activity and performance. After choosing the right trader, users put in the amount of money they want to invest in them. With this knowledge and information, users start building their own portfolio too.
The rise of fintech services has and will continue to change the way we do business. From e-commerce, to lending, and even transferring money across borders, businesses and indeed their customers, are turning less to banks and are embracing the digital world of fintech. As a result. businesses can now offer substantially advanced services at a fraction of the cost, which is good news for both businesses and their customers.