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Cover image for 5 FinTech Companies Disrupting Banking And Finance

5 FinTech Companies Disrupting Banking And Finance

seattledataguy profile image SeattleDataGuy ・6 min read

Photo by Sean Pollock on Unsplash

You may think of ATM workings as a revolutionary experience but since the advent of Fintech, the entire financial services domain has entered a new era. Whether you purchase a cup of coffee or manage your finances, fintech is everywhere. From payments via apps such as Payoneer or Paypal to getting reports, or even using cryptocurrency, fintech is everywhere. This decade --- 2020 --- is bringing along loads of useful technological developments and therefore, you need to implement these updates to stay ahead in the industry and offer better services.

So how are companies using fintech to benefit from intelligent technology? In this article, we will take a look at what exactly Fintech is and how the top finance industry organizations are using it. So, let's begin!

What is a Fintech Company?

Financial Technology or Fintech refers to the new technologies being embedded into organizations to improve and automate their financial services. The main aim of fintech is to help companies in optimally managing their financial processes and operations by utilizing specialized algorithms and software. This concept emerged in the 21st century and was initially implemented for back end systems of financial institutions.

This includes implementing machine learning models, mobile banking and several other concepts that would have been much more difficult if it wasn't for the ever-improving technology.

Top 5 Fintech Companies

Now that we have discussed what Fintechs are and how important their role is, let us have a look at the top 5 financial technology organizations and see how they work:

Fraugster

Fraugster

Fraugster, founded in 2014, is an anti-fraud solution used by financial service providers to analyze shopper behavior and process every transaction to ensure the elimination of cyber frauds and scams. This solution takes data from multiple resources, analyzes it and cross-checks patterns to determine whether a transaction is genuine or fraudulent.

Fraugster requires no additional integration or set up for its consumers. Merchants can gain full protection in a few seconds. This German-Israeli company uses artificial intelligence to not only eliminate scams but also increase profits for its customers.

How Does it Work?

The AI technology deployed by Fraugster can detect fraudulent transactions within 15 milliseconds with high accuracy which is why this solution is highly in demand. This solution is built with an ingrained learning process that allows firms to gain real-time insights from their merchants and hence minimize scams.

Fraugster offers three main products --- flame, fire, and fraud-free --- for entry-level, medium enterprise and outsourced risk management solutions.

Qudian

Qudian

Founded in 2014, Quadian is a China-based credit provider company that offers cash credit products in both digital and merchandise forms. The company works via an online platform and facilitates users with transaction options on their mobile devices. To offer optimal services, Qudian utilizes regulated, institutional, secure funding sources which saves them from liquidity concerns that majority peer-to-peer businesses are facing in this era.

The company holds a record of 140 million historical transactions successfully executed through big data technologies. This firm's target market is China's 1.4 billion underserved population that demands small consumption-based credit. Currently, Qudian is offering products of over 1000 brands in electronics, watches, sports and luggage domains mainly.

How Does it Work?

Set up under the VIE structure, Qudian operates on big data-enabled technologies which have allowed the company to lead the peer-to-peer lending industry in China. With the combination of artificially intelligent algorithms and data sets based on machine learning, Qudian transforms consumer's finance experience by making personalized credit accessible.

Adyen


Adyen

Adyen, an Amsterdam based global payment enterprise, heavily utilizes technology to offer financial services. This company was found in the year 2006 and currently, it comprises of about 1200 employees. Adyen allows small and medium enterprises to accept mobile, POS (Point-of-Sale), and e-commerce payments.

What sets Adyen apart is its usage of technology since it is the only provider that offers e-commerce processing as well as POS in a single platform along with unified reporting. Moreover, Adyen's infrastructure allows users to connect card schemes and other payment methods directly. Besides, it enables global expansions by connecting all worldwide payment methods.

How Does it Work?

Adyen is built with a modern, artificially intelligent infrastructure that replaces the patchwork of systems with card networks and payment methods. The modern layout allows unified commerce and therefore the company can gain useful consumer data insights to the merchants. The system also ensures that merchants accept payments in the same system which in turn enables the growth of online revenue on POS and mobile devices.

Avant

Avant

Founded by Mr. John Sun, Albert Goldstein and Paul Zhang in the year 2012, Avant LLC. is a private online borrowing company. Avant works to improve loan experience for middle-class consumers by offering responsible consumer lending services which are backed by most well-regarded investors in the financial technology industry. This Illinois-based firm offers two main products: Transparent Credit and Personal Loans. The prior service allows you to pay for your necessities while building credit alongside while the latter service offers personal loans for unexpected expenses

How Does it Work?

Avant performs its operations based on data-driven insights that are obtained from big data algorithms. These insights inform the product decisions and enable the organization to evaluate and prioritize changes. Furthermore, Avant works with data built, test and run to find what works best in iterative format. This allows the company to achieve optimal formulae and functions for operation.

ZhongAn

ZhongAn

ZhongAn is another Chinese fintech company founded in 2013. This Online P&C insurance company is an online-only insurance provider that sells all its products online along with handling claims. The company offers business opportunities for household property insurance, liability insurance, cargo insurance, credit insurance, and internet-based businesses.

Owing to its digital focus, ZhongAn is recognized as one of the biggest disruptors in the insurance market of China. This company has remained first and an only Chinese company to obtain an internet insurance license which permits it to sell insurance services online.

How Does it Work?

The digital innovation of ZhongAn is what sets it apart. Here 97% of customers interact via chatbot which makes communication immediate, accessible and very fast. Besides, the organization utilizes cloud computing technology, blockchain, and artificial intelligence to build its online financial ecosystem. The usage of AI helps ZhongAn in not only reducing labor costs but also reach greater online service. ZhongAn is also developing its personalized blockchain insurance process in partnership with Ethereum and Shanghai Blockchain Enterprise Development Alliance to promote technological co-creation for the better future of Fintech.

Conclusion

From online transactions to blockchain technologies, and ML software to smart ledgers, the newest innovations are hitting the Fintech sector at a rapid pace while traditional service providers are still struggling to understand cloud computing. To stay relevant in the market, it is important to understand and adopt these concepts because the future has already begun!

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