Fintech startups, which have pioneered important innovations and developments in the sector in recent years by providing services in the field of financial technology, continue to develop new and creative business models by using APIs opened by financial institutions for data sharing. Fintech (Financial Technology) companies use technology to improve financial services, and aim to make the lives of users easier by bringing solutions as an alternative to traditional services with their technological power.
The PSD2 regulation created in 2015 made open banking applications possible. Thus, banks would now be able to open their customers’ financial information to third-parties (fintechs) with customer approvals and high security technologies, giving them the opportunity to access this information and make transactions. With the introduction of fintechs into our lives, we can now perform many banking transactions via mobile applications, use our smartphone as a digital wallet, and make our payments completely online.
According to the report prepared in cooperation with the Interbank Card Center (BKM) and Fintech Istanbul, the amount of investment made in fintechs in 2019 was 8.4 million dollars. While Fintech startups were mostly in the field of payments in the beginning, many startups focused on producing innovative solutions in the fields of B2B solutions, lending, international money transfers, robo consultants, regtech and insurtech in addition to payments in the following periods.
What Contributions Do Fintechs Make to the Finance Sector?
With the development of technology, Fintechs are an important player in the transformation experienced in the financial sector with their contributions to the sector. Although initially there were concerns that fintech startups would take the power of banks away, over time it became clear that banks and fintechs could complement each other, and both sides could improve customer experience and satisfaction much more.
With open banking technology and the role of fintechs in the financial sector, active competition is created, innovation is supported and a better customer experience is aimed. The increase in the Fintech ecosystem also supports this transformation. Fintech companies’ fast, easy, less costly and personalized service approach continues to make significant contributions to the finance sector.
If you want to bring your venture to life and create value in the sector with the innovative solutions you offer, you can contact us to discover the solutions we provide to fintechs with FLYP.