What is fintech and why does it matter?

Posted on

August 22, 2022

by

Carrie Shunia

From mobile payments to remote check deposit, it’s safe to say that the power of Fintech has affected our everyday lives. In fact, Ernst & Young’s latest Global FinTech Adoption Index shows 64 percent of the globe was using fintech applications in 2019, up from a meager 16 percent only four years prior. It also shows that three out of four consumers had become users of money transfer and payment solutions.

That’s a pretty big jump! But even with its growing popularity, the idea of “fintech” can still sound a little vague. If you’d like to understand what fintech is besides a buzzword, read on below.

What is fintech?

Literally, “fintech” is a mashup of the words “financial” and “technology.” Any kind of technology that was developed for financial institutions, whether it helps with payments, card usage, money transfers can fall under fintech. Here’s another way to think about it: If the technology is used to enhance, simplify, digitize or change up traditional financial services, you can safely consider it “fintech.” On a slightly more technical level, fintech refers to desktop or mobile software, algorithms and applications. In some cases, it includes hardware, such as internet-connected piggy banks. As you can see, it’s a lot.

Why it matters

The best way to think about fintech is to remember that it exists to make everyday financial tasks easier, such as paying bills or depositing checks, or even applying for a loan. It also helps broker more technically complex concepts, such as peer-to-peer lending and crypto exchanges. That Venmo payment you sent your mom to help cover your sister’s birthday dinner? That used fintech. The rideshare driver you paid in Bitcoin last week? Boom -- fintech. While civilization could certainly carry on without fintech, it enables people and businesses to move faster, communicate better and generally make life (from a financial perspective at least) easier.

What the future holds

With all of that said, the possibilities that fintech provides the financial industry (and the account holders and consumers they serve) are endless. And while you likely won’t have to become an expert in fintech and all of the different technologies that fall under its umbrella any time soon, we hope you now have a better idea of how meaningful the everyday tools you use to conduct financial business are.

If your financial institution is looking to make a splash in the fintech marketing scene, Larky can help. We deliver customized push notification campaigns directly through the mobile banking app so that account holders receive relevant information when and where they need it most. To learn more, just drop us a note or schedule a quick demo to see for yourself.

May be interesting

85% of FI Customers Opt Into Push Notifications According to Inaugural Larky Lowdown Report

85% of FI Customers Opt Into Push Notifications According to Inaugural Larky Lowdown Report

Larky is pleased to release its inaugural version of the Larky Lowdown, a quarterly report providing unique insights and trends into push notifications and their impact on the financial services industry.

Learn More
Why you should use emojis in your mobile messaging

Why you should use emojis in your mobile messaging

Emojis, those little pictures that add emotions to text, are typically used in text messaging or push notifications and add a lot of fun and context to your message. When should financial institutions to use emojis and when should they stay away?

Learn More
MSUFCU Launches Larky’s nudge® to Strengthen Digital Member Engagement

MSUFCU Launches Larky’s nudge® to Strengthen Digital Member Engagement

 Larky, a fintech provider proactively connecting financial institutions with their audience in the right place and at the right time, has launched its nudge® platform with East Lansing, Mich.-based Michigan State University Federal Credit Union (MSUFCU).

Learn More

Newsletter

Ready to send timely alerts to your audience?

Bundle our proven targeted mobile messaging technology by integrating
the easy-to-implement code library into your apps.

Request a Demo