More and more Emerging Companies or start-ups are offering innovative and attractive services based on new technologies for the financial sector, called techno-financing or fintech. This growth is due to the benefits it supposes for the companies that decide to contract those services. Its use has many advantages over traditional financial services, regardless of the type of company that uses them.

In reality, the world of techno-finances is pervasive. In it, we find that there are multiple areas or services in which they can be applied and among them stand out as habitual, for example, platforms or software linked to payments and transfers, mobile banking, stock trading ( trading) or insurance.

As innovative areas or services there are also, although still less implemented but equally attractive, the automated management of processes and digitization, compliance ( compliance ), security and privacy, advisory services on finance, the commodities market premiums ( commodities ), loans and corporate financing or cryptocurrencies.

Depending on the type of technological, financial product used in a company, the benefits may be one or the other. But, in general, we can define several benefits that are often repeated in all areas related to financial technology. In general, therefore, you can achieve significant competitive advantages compared to competitors who do not use this type of services or platforms.

Saving,  both in time and at the economic level, is one of the most notable and direct benefits that is usually associated with faster and automated management,  in the first case, and better cost management, in the second case . But, although they are the most direct advantages, there are many others.

So, this is an advantage that affects the moment of contracting the service, so we deal with a position that is immediate. Also, these processes are disintermediated, a fact that gives more power and control to the company. Also, on the other hand, it is possible to improve the analysis of these processes, thanks to the information and data that we can obtain, more detailed, more updated, more realistic, etc.

Financial Technology Is And Makes Us More Efficient

The application of technology to finance can make processes or management of a company more efficient. The techno-financial sector is characterized by being micro-segmented since there is a multitude of fintech startups that offer many services and very specific. This is in contrast to the traditional financial sector where there are few actors, generally large, that provide a large number of services (such as banks that offer payment services, loans, insurance, trading, asset management, etc.).   This automation supposes a great specialization since it offers very concrete services. Thus, its high degree has a high level of efficiency and quality of services, as well as a quick and agile response.