What Does FinTech Mean?
FinTech is short for "financial technology." It refers to the commercial use of new technology to manage finances or offer financial services to customers, often as an alternative to traditional methods that involve human interaction or transacting at a physical location.
Insuranceopedia Explains FinTech
FinTech has grown in popularity as advanced digital technology has become more affordable and a common feature of everyday life. Many companies now offer financial services or manage their own finances and investments through the use of smartphone apps, artificially intelligent software, and big data analysis.
Budding entrepreneurs seeking investors, for instance, can now fund their projects through crowdfunding platforms, allowing large numbers of potential future customers to bankroll their business rather than securing funding from an investment firm.
Many insurance companies have adopted FinTech tools to make their offerings more efficient and convenient. They may, for instance, use robo-advisors to sell insurance policies.