While banks are arguably the most important financial institutions, there are several new and emerging companies in the space that are redefining the way we manage our money. Examples of fintech include roboadvisors, which use algorithms to make investment recommendations for you. One such Fintech is Mint, which offers a variety of services for managing your money. Other Fintech examples include insurance and healthcare companies and the blockchain.

Upstart wants to make banks and other lenders irrelevant. The company uses a variety of data sets, including employment history, education, and credit score information, to make lending decisions. Lending Club enables peer-to-peer lending and provides financial services for people without a traditional bank account. Similarly, Ellevest focuses on addressing the unique savings needs of women and aims to offer a better financial experience for them.

FinTechs offer products and services that financial institutions provide, such as credit cards and insurance. In return for access to a BaaS platform, the FinTech pays a fee to the financial institution. It does so in exchange for regulatory expertise and a banking license. These financial institutions also provide products and services associated with payments, debit cards, and fraud management. The difference is that these new companies are often much cheaper than traditional financial institutions.

The rise of fintech companies has impacted nearly every aspect of the financial world. The term used to refer to technology applied to the backend systems of traditional financial institutions has now become a mainstream technology that has entered the lives of millions of people. With its democratization, fintech companies will be able to make financial services more accessible to consumers. From trading stocks to paying for groceries, fintechs will transform the way we access finances.