Fintech: the new era of financial startups

There are terms such as startup or fintech that have positioned themselves in the dictionary of business lovers and that over time have been gaining strength thanks to new ways of creating companies and generating income.

The financial world is being transformed every day and with it the new ways of creating different businesses. There are the “traditional” ones, who over the years have created their wealth safely, with low risk and relying on traditional ways of making money. On the other hand, we have the “risky”, young people who have learned how to take advantage of new technologies and sources of funding, thus creating the famous startups.

But... What is a startup? These are certain companies that develop products and/or services, where technology is the main differential of traditional companies, where they achieve levels of accelerated growth. Most of these live in a digital ecosystem such as mobile applications, websites, software and also hardware. These can be companies related to consumer services, healthy living, music and cinema, among others.

So, What is a fintech? You could say that a fintech is a startup with a purely financial product or service. And... Where does this word come from? , easy, is the mix between the words Finance and Technology. According to the guild Colombia fintech there are around 400 registered fintechs, which generate approximately 9000 jobs. Learn more about fintech in Colombia.

A clear example of fintech is Zulu (sign up here), a tool that seeks to enable different companies worldwide to carry out the international operations they want safely, easily and just a click away.

We know that traditional banks still lead, dispose of and collect the largest amount of financial capital in the world on a regular basis and under the same channels of service. However, Fintech companies seek to innovate and generate different processes with greater speed digitally, to sooner or later find themselves shoulder to shoulder with the largest banks in the world.

Although we can generate a comparison between traditional and fintech banks, we cannot justify which is the best financial model, since it depends on the vision of each entrepreneur or businessman. And this is when we see the value and potential of startups, because even if they are new business models for the most “intrepid”, technological and 100% digital, the employability generated is high.

That's how Fintech companies have managed to compete with traditional banking which has been setting the tone and trends in finance so far, in its processes, versatility in its products, better communication channels, greater closeness with users and best of all, at low costs.

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