October 22, 2015

What is FinTech?


So what is this 'FinTech'?

FinTech is short for Financial Technology. The concept of a FinTech company is to deliver services that push the boundaries of the financial services industry. Fuelled by innovation, FinTech players are challenging traditional players within the financial services to deliver cheaper, more effective alternatives for end consumers. I mean, who wouldn't want the choice that innovation brings? Here at CommuterClub, we want to change the way you pay for your travel, and offer you the savings of an Annual ticket while retaining all the flexibility of a monthly ticket.

Why is it important?

Is FinTech important to companies? Yes it is! FinTech companies aim to disrupt the typical nature of the sectors they work in, this also leads to a change in the way that companies do business. The FinTech sector is flourishing, with global investments reaching £8.2bn last year! With growth, comes jobs and better opportunities to deliver these great services.

The introduction of crowdsourcing for funding, and the use of Peer2Peer lenders such as CommuterClub's affiliate RateSetter, is making other businesses and conventional forms of finance change drastically. Rather than going to a bank and getting a loan in which you would be charged a higher level of APR, you are able to go through these Peer2Peerlending sites and get a better loan at a much lower interest rate.

This has not only changed lending, but also many other aspects of finance such as sending money across borders or managing personal finances. Sounds pretty helpful right? These are only a few examples of the ways in which FinTech companies are revolutionising the world of financial services. The rise of FinTech companies are revolutionising the world of financial services. The rise of FinTech start-ups is helping many businesses access funding, and offer better value propositions to their staff and their customers.

How does it affect me?

We all like benefitting from having options. The rise of FinTech is ultimately delivering benefits for end customers, as well as increasing the trust in financial servies. According to 'The Millennial Disruption Index' 71% of people would rather go to their dentist than listen to what their bank has to say. That says a lot!

The wide range of FinTech businesses has opened up new opportunities for people to get the most out of technology in the financial services industry. An example of this would be having to pay for an annual travel card in one epensive, upfront lump sum. At CommuterClub however, we solve this problem by spreading the lump sum across manageable monthly direct debit payments. This allows our customers to pay that off the equivalent of a year at the same cost as a monthly, with a month free included, bring you the best available savings.