Top 5 FinTech Use Cases And Examples In Real World

Top 5 FinTech Use Cases And Examples In Real World

Blockchain News
May 4, 2023 by Diana Ambolis
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Recent years have seen numerous promising improvements in the financial services industry. The traditional perspective on FinTech use cases has evolved as a result of digital banking, cryptocurrencies, and, most significantly, digital lending. Although the typical FinTech examples and kinds demonstrate the potential of the field, it is crucial to understand its applications and examples.
Top 5 FinTech Use Cases And Examples In Real World

Recent years have seen numerous promising improvements in the financial services industry. The traditional perspective on FinTech use cases has evolved as a result of digital banking, cryptocurrencies, and, most significantly, digital lending. Although the typical FinTech examples and kinds demonstrate the potential of the field, it is crucial to understand its applications and examples. The fusion of finance and technology has developed into a well-known catch-all phrase with numerous definitions.

Nevertheless, the growth of a new sector that uses technology to simplify the experience of traditional financial services is indicated. At the same time, algorithm-based trading and blockchain are mentioned in broad FinTech discourse. On the other hand, the field of FinTech may also have practical applications. Examples of FinTech that we use frequently include mobile banking and online loan apps.

What additional FinTech applications should you be aware of? You might better comprehend the possibilities of FinTech and how it might benefit you if you thoroughly understand its use cases. The page that follows lists a few of the most common applications and uses of financial technology.

A Synopsis of FinTech

Prior to thinking about the well-known FinTech instances, it’s critical to gain a fundamental understanding of the field. The simplest definition of FinTech is any technology that improves how consumers and organizations interact with financial services. It refers to any company or service that makes banking and financial services easier to access via the use of software or other technology. Early ATMs and credit cards were introduced at the start of the FinTech era. Since then, FinTech has steadily had a disruptive effect on a number of areas of the financial services industry.

FinTech was once exclusively used to describe back-office operations at financial institutions like banks and stock trading firms. With the introduction of the internet and the growth of mobile computing, new FinTech examples in banking gained traction. Users and businesses can now rely on a constantly growing selection of powerful digital tools to help their personal and company finances. How will FinTech impact the provision of financial services in the future? Based on the astronomical increase in the impact of technology on the financial sector, the need for developing a cashless society serves as a clear indication of the solution.

FinTech’s objectives

The goals that underpin the FinTech industry’s foundations may give a convincing image of a gradually rising level of integration between financial services and digital technologies. Financial services for consumers and organizations may be delivered more effectively and automatically thanks to FinTech. The FinTech examples highlight how it prioritizes businesses offering cutting-edge financial services and solutions, which is the most crucial of all.

What objectives does FinTech have? The primary objective of FinTech is to assist various businesses and consumers in the efficient administration of financial transactions. Since FinTech makes it possible for people to obtain desired financial services from their smartphones, financial transactions are no longer limited to laptops and desktops.

FinTech is gradually growing stronger and better equipped to help you reach your objectives, as seen by the significant increase in funding it receives each year. Tools made possible by FinTech have significantly improved how financial services are tracked, managed, and accessed. In fact, 64% of millennials in the US use a single, all-encompassing banking app on their phone that offers a variety of financial services. How can FinTech benefit various categories of consumers of financial services?

Top FinTech use cases for real world

Mobile payments, consumer banking, blockchain and cryptocurrencies, insurance, and payment gateway are a few examples of how FinTech is used. The debate over how valuable FinTech is for various user types will undoubtedly highlight some of the applications of FinTech. The fact that FinTech has disrupted traditional banking and financial services clearly indicates its influence. The numerous FinTech use cases have become significant threats to the established, physical organizations providing financial services. Millions of consumers currently rely on FinTech in one way or another, mostly via smartphones and other mobile devices.

Most importantly, FinTech has evolved into a useful remedy for the issues with access to banking and financial services. According to what we know, FinTech might give the world’s almost 2 billion unbanked people access to financial services. You can better grasp how FinTech might increase financial service accessibility by using examples rather than depending on conventional banks and other financial organizations. The following list of significant FinTech applications includes the pertinent examples for each use case.

Mobile Payments

The possibility for mobile payment transactions would be the primary emphasis of the most notable responses to the question, “What are examples of FinTech?” With creative FinTech applications, more than 5.11 billion mobile users worldwide might access the mobile payments industry.

By 2023, the mobile payments business, according to experts, might expand by more than $4.3 trillion.

FinTech companies are always developing innovative approaches to granting access to their services, regardless of location. Digital authentication, NFC, and mobile wallet technologies are a few of the noteworthy FinTech advancements that have fueled the expansion of mobile payments. The combination of financial services with mobile computers has also been remarkable. Mobile payments might contribute to laying the groundwork for a world without cash.

The mobile payments FinTech examples can clarify the practical uses in more detail. The two most popular options for using FinTech for mobile payments are Venmo and Apple Pay. One of the most widely used mobile payment apps is Venmo, which has daily interactions with over 65 million users. It’s interesting to note that Venmo recorded nearly $12 billion in transactions in 2018.

Another cutting-edge illustration of a mobile payment app in finance is Apple Pay. It is a digital wallet that supports non-Apple Pay payment terminals as well as contactless payments. Revel Systems, a company that creates retail POS systems for restaurants, supermarkets, and other companies, is another well-known example of mobile payments in FinTech.

Client Banking

Numerous billions of individuals around the world have not had access to banking services. For a variety of reasons, about 2 billion people globally lack access to bank accounts or mobile payment services. Use cases from personal or consumer banking demonstrate how FinTech ideas can be applied to banking with significant benefits.

Historically, traditional banks have operated in a way that excludes some social groups from banking and financial services. For instance, bank transaction fees and identity verification requirements may make it difficult for anyone to use financial services.

Users could find alternative consumer banking products and solutions geared toward resolving accessibility difficulties with the aid of FinTech. Consumer banking platforms or FinTech solutions may contribute to increased financial service affordability and accessibility.

The general use of mobile banks, digital banking, and FinTech has helped the consumer banking industry advance. Moven, Green Dot, and Netspend are a few well-known consumer banking financial technology examples. One of the most well-known banking apps, Green Dot is the largest retail cash deposit network and is relied upon by millions of users.

Moven is a FinTech platform that provides adaptable and intelligent banking services, which might lower customer acquisition costs, increase new revenue streams, and enhance customer retention. Another example of technology in banking that promotes security, convenience, and financial independence is Netspend.

Blockchain and digital money

The list of FinTech examples would never be complete without addressing cryptocurrencies and blockchain. The top responses to the question “What are examples of FinTech?” are blockchain and cryptocurrencies because they can bring about significant reforms in various industries. Blockchain can alter the traditional methods for providing financial services, which is how it fits the definition of FinTech.

To begin with, blockchain technology makes use of cryptography technology to create cryptocurrencies, which act as a reliable and effective replacement for cash. Blockchain technology may thus demonstrate its capability to impose disruptive changes across various traditional business structures.

Blockchain technology and cryptocurrencies have been widely employed by businesses to gain major advantages such as increased traceability, security, and transparency, as well as quicker transactions and reduced prices. Additionally, blockchain-based smart contracts may set new standards for how people can access financial services.

Blockchain and cryptocurrency examples in FinTech would refer to a variety of platforms and programs, including Bitcoin, Ethereum, Binance, Coinbase, and many others. One of the intriguing features of blockchain technology and cryptocurrencies as FinTech examples is the variety of available solutions. The greatest FinTech applications include DeFi solutions, cryptocurrency exchanges, and other kinds of crypto assets.

Also, read – What Is FinTech – A Beginner’s Guide

Payment Gateways

Payment gateways are the next common example of FinTech use cases. Before the advent of e-commerce, electronic payment systems were operational. The advent of online payment gateways contributed to the transformation of payment on e-commerce platforms by enhancing the practicality, usability, and accessibility of financial services. Payment gateways solved the issue of sending money without the involvement of banks.

Payment gateways provide consumers with a number of advantages, including a reduction in costly bank transaction costs. Payment gateways also make it simple for e-commerce companies to complete transactions. Payment gateways have simultaneously improved their defences against various attacks. In contrast to banks, the advent of blockchain-based solutions, for instance, could contribute to enhancing the security of payments.

The most well-known FinTech instances among payment gateways are those that involve PayPal, the world’s largest online payment provider. With almost 286 million active account owners, it specializes in electronic money transfers and operates in more than 200 markets globally. PayPal has served as some inspiration for other payment gateways in some cases. For instance, you may mention Payoneer, a well-liked payment processor that major corporations like Amazon and Google favour. Payoneer has become a well-known source for online money transfers, recognized B2B payment solutions, and digital payment services.

Insurance

The flow of other financial services, like banking, has also been changed by FinTech. The use of FinTech in insurance has also produced new benefits, while the list of many FinTech instances in banking has opened new pathways for efficiency. Numerous InsurTech platforms have created cutting-edge insurance applications that could make it simpler to get insurance.

The businesses and service providers in the insurance sector work together with traditional insurers to automate insurance processes and manage coverage. The potential for innovation in FinTech’s insurance applications would provide new benefits to the development of health insurance and other insurance services.

The elimination of labour-intensive and complicated processes would be one of the FinTech’s most notable benefits in the transformation of insurance. As a result, it can make insurance services more accessible while also making it easier to handle coverage and claims.

Root Insurance, Oscar Health, and PolicyGenius are just a few instances of financial technology used in the insurance industry. A well-known unicorn tech company called Root Insurance provides alternative auto insurance. Drivers might save about 52% on their insurance premiums by using the FinTech platform.

To sum up

The conclusion drawn from FinTech examples and use cases demonstrates that the phrase “financial technology” goes beyond these two core concepts. With novel changes in how users access and use financial services, FinTech applications have the potential to completely revolutionize the user experience. New use cases for providing added value in financial services would emerge as a result of the seamless integration of finance and technology.

Every day, the FinTech industry expands in scope, necessitating experts’ management of the ecosystem. For instance, blockchain-based DeFi solutions could make it possible for anyone to open a savings account. Using FinTech, you might execute financial transactions and have access to other financial services without any restrictions.