Fintech & Insurtech 23.11.22

Cutting-Edge Business Concepts In The Fintech World

Fintech (Financial Technology) and Insurtech (Insurance Technology) are two of the most exciting markets in the world.

Cutting-Edge Business Concepts In The Fintech World

Fintech (Financial Technology) and Insurtech (Insurance Technology) are two of the most exciting markets in the world.

The Fintech industry is all about enhancing financial transactions and processes with smart technology - for example, cashless payments, online crowdfunding, and AI advisors. These platforms and solutions make financial management more accessible and convenient for millions of users around the world.

Insurtech, on the other hand, utilises technological advancements to deliver superior insurance services. Many Insurtech brands leverage AI and machine learning to automate decision-making and provide consumers with data-driven assessments and personalised products.

Both of these sectors are packed with innovative and forward-thinking businesses, from punchy challenger start-ups to established corporations.

Many of these companies are also making a significant impact on the daily lives of their audiences.

For example, Kenyan Fintech M-Pesa has unlocked quick and easy mobile payments for 51m customers across seven countries in Africa, which is hugely transformative and has helped lift many from extreme poverty.

Unsurprisingly, both the Fintech and Insurtech markets are also growing at a mind-blowing speed. Fintech companies received $210bn in global investments in 2021, and new players are constantly emerging with fresh ideas.

Let’s take a look at some of the most cutting-edge Fintech solutions, and highlight a few of the innovative businesses that are shaping the global financial landscape.

P2P Lending

P2P (Peer-To-Peer) lending allows individuals to borrow money from other individuals, rather than needing to rely on loans from banks and financial institutions.

P2P lending models are more flexible than traditional systems, and enable investors to generate better returns by lending money to qualified and trusted borrowers. Since P2P lending revolves around digital platforms and online transactions, it also makes the borrowing process infinitely faster and more convenient for users and investors.

P2P lending platform Ratesetter has achieved tremendous success in this space, offering personalised rates for customers based on their credit scores and loan requirements.

Zopais another popular P2P lending business that offers automated pre-approvals (for 65% of applicants in as little as 12 seconds) and smart digital tools that help users to manage their loans.

E-Wallets

E-Wallets have skyrocketed in popularity in recent years and transformed the way that millions of consumers handle everyday transactions.

By using E-Wallets, users can pre-load money into a digital wallet and use these funds to make both online and offline purchases with a huge number of vendors. As more and more merchants are now accepting E-Wallet payments, this technology is becoming increasingly accessible and practical.

Digital wallets also offer a range of benefits for users, from convenient shopping experiences to enhanced financial security and reduced costs for money transfers.

Many E-Wallet providers are now active in the market, each offering different features and unique tools.

ecoPayz, for example, places a strong emphasis on advanced security features that keep funds safe and protected. MuchBetter provides users with speedy and convenient payment options (including a wearable key fob device) while Kraken allows individuals to purchase and trade cryptocurrencies through digital wallet technology.

Insurtech

The rise of Insurtech has overhauled many traditional insurance products and processes.

By using cutting-edge technology and AI-powered solutions, Insurtech brands can deliver faster and more efficient service to customers. Not only can Insurtech businesses use machine learning to generate quicker (and often cheaper) quotes, but they can also release payouts much faster than traditional insurance companies.

Insurtech innovators are also emerging in every area of the insurance world, from life insurance to motor insurance and home insurance.

Personalisation is one of the biggest advantages that Insurtech brands have to offer their clients. Since Insurtech brands use AI to rapidly analyse user data, they can produce tailored insurance packages that are built around the specific needs of the customer.

Acturis is a successful Insurtech brand that uses cloud-based technology to deliver a range of insurance services. PremFina is another Insurtech business that focuses on accessibility, offering a white-label app that allows users to purchase insurance as a monthly subscription.

Axitech uses industry-leading collision management technology to improve the claims process for connected car organisations, while INSTANDA provides insurance teams and brokers with the technology they need to launch new financial products.

Insurtech has driven significant changes in the insurance sector, and these innovative brands and pioneers play an important role in improving the customer experience.

B2B Lending

B2B lending is similar to P2P lending in that it has opened up exciting new opportunities for business borrowers and investors.

B2B lending platforms provide business-to-business companies with various financial services (e.g. financial loans and credit tools) that were traditionally only available through banks. These B2B lending services tend to be more dynamic and flexible, and are often invaluable for businesses that are looking to drive growth through increased funding.

By automating many manual lending processes such as borrower approvals and document management, B2B lending platforms have streamlined the entire system.

This allows SMEs to access critical funding quickly and easily while also enabling larger business investors to lend money to reliable and vetted borrowers.

Yobota is a B2B lending service that provides cloud-based banking solutions for businesses looking to create new financial products. The platform is designed for agility, enabling financial brands to add and adjust modular tools depending on their needs.

Sikoba uses a blockchain-driven ‘IOU’ system to add more trust and transparency to the lending process, while SteadyPay offers easy top-ups, repayments, and credit-building opportunities to SME clients.

Fintechs have revolutionised many aspects of the financial world, from merchant transactions to lending opportunities and insurance services.

However, the true potential of financial technology is only just starting to reveal itself. New technologies and products are constantly being developed, so expect to see plenty more innovations in the coming years - as well as continued growth and significant investment.

If your company lies within the Fintech or Insurtech space and you’re keen to build out your finance team, don’t hesitate to get in touch with Charlie (charlie.whitaker@harmonicfinance.com) for expert support.

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