Fintech – Recently, technological developments have moved rapidly in every line of modern human life. almost all aspects of life are touched by technology. We admit that one of the goals of technological development is to provide convenience in all lines of life, including business and finance. With technology, whatever the community does will feel easy, effective and efficient.
Not to be left behind in the world of finance, new innovations are emerging to facilitate the financial and business systems, namely the emergence of financial technology which is called fintech or financial technology.
This fintech technology is a financial service that operates with the help of technology facilities. The term fintech itself only appeared in 2000. So, this term is still considered new, so that many people do not understand the meaning and function of this financial technology. To better understand the terms fintech and fintech companies, please see this article until the end.
What is Fintech?
The definition of the term fintech is as we briefly explained above. Fintech comes from the word financial and technology which is shortened as Finntech. This technology offers advanced innovations and breakthroughs in the management of matters related to finance.
Fintech itself has a very broad meaning because everything that deals with transactions, business and finance can be called fintech. The extraordinary development of the internet provides gaps and avenues for the development of fintech itself. The large number of internet users has allowed fintech companies to grow rapidly through the internet network. The emergence of various applications that manage finances and business transactions is an effect of fintech itself.
Because it contains a broad meaning, fintech can also be interpreted as B2B or retail. So, fintech can also be interpreted as financial services in applications that are equivalent to banks or applications on smartphones such as investments, cryptocurrencies, online loans, and others.
So, along with technological developments that are increasingly far and wide, the meaning of the term fintech will also continue to expand and develop.
Today’s Fintech Services
Fintech has always been an innovative technology about finance, in the midst of the incessant technological development, fintech companies have several services including crowdfunding. Crowdfunding is a service from fintecth for the purpose of raising funds or what is called a peer to peer system. The way it works is that the lender will be connected directly to the borrower.
Apart from crowdfunding, there are what are called financial advisory robots. Here, fintech acts as a service provider in the form of online asset management. This financial robot will provide advice in the form of advice in managing your finances.
In addition to the services above, one of the services that is very popular and provided by fintech is online payment services as are widely used by online companies such as paytren and others. Bias, this technology uses smartphones to run this digital payment business.
To maintain consumer loyalty, usually fintech companies will use a member system in their services. From this membership system, fintech will provide a percentage advantage in every transaction so that users or members remain loyal to the company.
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Financial technology also opens up capital services and financial investment services such as those on the paytren road and other businesses. Examples of fintech services are capital raising, credit facilities, and micro-loans.
Along with technological developments, it is not impossible that fintech will penetrate various lines of finance and business, even in the future, everything related to finance will be managed through this financial technology or fintech.
This is the Difference between Fintech and Conventional Financial Technology (Banks)
Indeed, both of them are engaged in business, economy and finance, but they are not the same. Finetch and conventional banking or financial technology have a very big difference, even the two are inversely related.
If a bank needs large funds to be able to stand and it needs large buildings and a massive workforce to run. However, unlike fintech, this financial technology does not require a lot of capital and giant buildings to operate. Fintech technology only needs a digital platform to work.
Well, this is where many people think that fintech can run more effectively so that many have entered the world of fintech-based financial business. However, generally companies engaged in fintech are startups, so their funds are not large. Unlike banks that have large funds in operation.
In addition, the legal basis for the establishment of a fintech company is also not well ordered and neat, but so far there is already a body that monitors it, namely the OJK. However, there are still many illegal fintechs appearing on the internet. So every customer should be careful and ensure that the company is legal so that their finances are not messed up.
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The Largest Fintech Company in the World
Fintech continues to develop and advance so that this company engaged in the financial sector has the potential to become a large company. In fact, there are so many companies that today are starting to explore the fintech field. In fact, some of the fintech companies received large funds of up to trillions of rupiah.
So which is the biggest fintech company in the world? Based on information from Forbes, that the biggest fintech company is Greensky in America. This company has unsustainable funding, which is around 6 trillion rupiah. As of 2017 the revenue earned by the greensky company ddibursa NASDAQ was 325.9 million USD.
There is another fintech company that is under Greensky but has a bigger income, namely Kabbage. Kabbage, founded by Rob Frohwein, recorded a profit of 500 million USD. Using cabbage there are interesting things, borrowers can immediately get a loan in just 5 minutes after making an agreement in the application.
Next, there is the Stripe company which is one of the giant fintech companies with a disbursement of funds of 450 million USD. This is a financial company that only focuses on online payments. The company, which was founded in 2010, can accept payments online in all currencies around the world.
The next largest fintech company in the world is fintech Affirm. Just like stripe, it only serves the online payment field but uses the same method as the credit card. So, customers can buy goods and pay in installments.
In fifth place, the largest financial technology (fintech) company in the world is TransferWise, which received funds of 379 USD. TransferWise provides international payment services. So, there are so many fintech companies that have grown into giant companies with large capital and large profits. In the future, this online payment company has the potential to grow more rapidly because it is considered more effective and efficient.
That was the biggest fintech company in the world. Then what about Indonesia, which ones are included in the biggest fintech companies in Indonesia. Let us see one by one below.
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The Largest Fintech Company in Indonesia
Indonesia is also one of the countries with a fairly rapid development of fintech. However, generally they are startups but they have the potential to continue to grow and become big.
Amartha is the largest fintech company in Indonesia which is engaged in peer to peer landing services. At the beginning of its appearance, this company was engaged in the balance sheet sector.
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Apart from Amartha, there is my financial company, this is a company that can solve your financial problems. Through my finance, you can get information about stocks, investments, even how to prepare pension funds.
T-Cash is also said to be one of the largest fintech companies in Indonesia which was founded by Telkomsel in 2010. This company is engaged in the assistance of transactions between users.
Apart from T-cash you are also the biggest fintech company in Indonesia called Midtrans. The function of Midtrans is to make it easier for users to pay online. Through Midtrans you can make payments with Visa, local banks such as BNI, Mandiri and BCA and can use internet banking. Apart from them there are also paytrends that are trying to move little by little about fintech.
Those are some of the largest fintech companies in Indonesia that provide online payment services, provide stock, investment or loan services.
Fintech’s goal is to provide convenience
Fintech is an innovation in the financial sector, especially in terms of paying to pay online and others. So, the goal is to make it easy for customers and make transactions and everything about finance has a solution.
It’s definite that fintech is inevitable. There is also a program called “Financial Services for the Poor” started by the Bill & Melinda Gates Foundation and it’s one more of their wise investments that consider the future. This program works to broaden the reach of cheap fintech services for the countries that are at different stages of digital development.
This technological innovation will gradually be favored by many modern societies, so the opportunity to progress and develop is enormous. It’s only natural that now fintech companies are mushrooming and trying their luck. So, every member in this fintech circle can advance their economy because every transaction that is made has a certain percentage of benefits for the customer.