FINANCIAL TECHNOLOGY (FINTECH) Financial technology (Fintech) is used to describe new technology that seeks to improve a
Posted: Wed Mar 30, 2022 3:41 pm
FINANCIAL TECHNOLOGY (FINTECH)
Financial technology (Fintech) is used to describe new
technology that seeks to improve and automate the delivery and use
of financial services. At its core, fintech is utilized to
help companies, business owners and consumers better manage
their financial operations, processes, and lives by utilizing
specialized software and algorithms that are used on computers
and, increasingly, smartphones. Fintech, the word, is a combination
of "financial technology". Fintech now describes a
variety of financial activities, such as money transfers,
depositing a check with your smartphone, apply for credit,
raising money for a business startup, or managing your
investments, generally without the assistance of a
person. According to EY's 2019 Fintech Adoption Index as
shown in Figure 1 below, 64% of global consumers adopted fintech
service, and 96% global consumers are aware of at least one money
transfer and payment fintech service, meaning that, those consumers
are also increasingly aware of fintech as a part of their daily
lives. Beside that, 25% of global SMEs adopted fintech
service whereby 56% of them use a banking and payments fintech
service, and 46% use a financing fintech service. Figure 2
shows the Business Life Cycle & Financing.
Business Life Cycle SEED EXIT START UP MATURE CROWTH EXPANSION
Stages of Financing Seed Money Start Up First Round Second Round Third Round Forth Round To prove a concept 17-10yrs) Funding for expenses: Mktg & Prod Development (5-9yrs) Early Sales & Manufacturing funds (3.7yrs) Working capital & expenses,NOT YET TURNING PROFIT (3-5yrs) For newel profitable company (1-3yrs) Bridge Financing for going public process (1-3yrs) Extreme risk (idea/R&D for Product Development High risk (start commercial Very high risk(operatio ns& developing prototype) Sufficiently high(expand mkt & growing working capital need) Medium (Mkt expansion, acquisition & pd developme nt) Low (Facilitating public issue) production & mktg) Acquisition or buyout financing
Financial technology (Fintech) is used to describe new
technology that seeks to improve and automate the delivery and use
of financial services. At its core, fintech is utilized to
help companies, business owners and consumers better manage
their financial operations, processes, and lives by utilizing
specialized software and algorithms that are used on computers
and, increasingly, smartphones. Fintech, the word, is a combination
of "financial technology". Fintech now describes a
variety of financial activities, such as money transfers,
depositing a check with your smartphone, apply for credit,
raising money for a business startup, or managing your
investments, generally without the assistance of a
person. According to EY's 2019 Fintech Adoption Index as
shown in Figure 1 below, 64% of global consumers adopted fintech
service, and 96% global consumers are aware of at least one money
transfer and payment fintech service, meaning that, those consumers
are also increasingly aware of fintech as a part of their daily
lives. Beside that, 25% of global SMEs adopted fintech
service whereby 56% of them use a banking and payments fintech
service, and 46% use a financing fintech service. Figure 2
shows the Business Life Cycle & Financing.
- Financial Technology Fintech Financial Technology Fintech Is Used To Describe New Technology That Seeks To Improve A 1 (193.71 KiB) Viewed 32 times
Stages of Financing Seed Money Start Up First Round Second Round Third Round Forth Round To prove a concept 17-10yrs) Funding for expenses: Mktg & Prod Development (5-9yrs) Early Sales & Manufacturing funds (3.7yrs) Working capital & expenses,NOT YET TURNING PROFIT (3-5yrs) For newel profitable company (1-3yrs) Bridge Financing for going public process (1-3yrs) Extreme risk (idea/R&D for Product Development High risk (start commercial Very high risk(operatio ns& developing prototype) Sufficiently high(expand mkt & growing working capital need) Medium (Mkt expansion, acquisition & pd developme nt) Low (Facilitating public issue) production & mktg) Acquisition or buyout financing