We are increasingly hearing it more: Fintech, a term that originates from the combination of two English words (financial and technology) that is already a trend around the world and has several emerging companies trying to transform the financial industry. Traditional banking, contrary to what you may think, is not an enemy but rather it invests and learns, and is taking its interactions from known channels (physical branches) to modern digital platforms.

Innovation has arrived to one of the most conservative sectors to date. It is changing the way we perceive financial services and focuses more on what consumers need within a technological environment that will simplify their lives. The challenge is to follow the speed of the market and of the clients, and improve their experience with strategic creativity.

Fintech initiatives play a fundamental role proposing disruptive changes in the financial services as we know them today. They operate primarily in three areas:

• Online baking 
• Stock markets
• Collective funding

The creativity and vision of entrepreneurs regarding the market’s needs are combined to create new transaction and payment services, market negotiations, commodities management, financing, financial security systems development, online customer service, digital wallets, etc. There are many possible combinations for developing Fintech business. 

One of the first routes of success for those venturing in Fintech is precisely the development of services that compete with traditional financial entities, but which can also sell to them or merge later on.

In 2014 global investment in Fintech firms tripled with respect to the previous year, according to a study conducted by Accenture. The European market is where these investments are growing more, and at the head are countries such as the United Kingdom, the United States and Spain. This trend is expected to continue and reach US$ 8 billion by 2018.

As to the future of this phenomenon, specialists predict fewer physical branches, less tokens (identifiers), fewer passwords, 24/7 access, and more products adapted to each user group. Developments focus on creating more alternatives to the traditional banking system, driven by cryptocoins and direct loans among users. Therefore, the online reputation of individuals, businesses and institutions will play a fundamental role in contributing to the transparency of all stakeholders involved.