The term fintech first appeared in the 1980-90s by American newspapers, but only became famous after the 2008 financial crisis, when new companies began to use mobile technologies, artificial intelligence, etc. to deliver efficient and cheaper financial solutions.

In this text we will approach what is a o que é uma fintech and show how these companies are changing the way we deal with financial situations.

What is fintech? 

Fintech is the union of the terms "finance" and "technology" and refers to any business that uses technology to improve or automate financial services and processes.

And this segment is big. Think about the year 2020 for a moment, and how technology has drastically changed our relationship with money. With the social distancing caused by the Coronavirus pandemic, we've seen a greater need to conduct financial operations without leaving our home. But how was this possible? 

With technology as the main focus, these companies provide various financial services such as digital bank accounts, credit cards, loans and investments. 

Unlike traditional banks, fintechs have a tendency to offer a more specialized service in a certain product - like personal loan, in the case of Click Cash, to offer more quality and focus.

And there are already over 742 fintechs in Brazil by 2020, an increase of 34% over 2019. The data is from the Fintech Report District, a survey conducted by the District, which shows that the area has already attracted $939 million in financial contributions.

What is the difference between fintech and Startup? 

Startup is a new company, which is developing its main product with the technology in its DNA. Fintech is any company that offers financial services through technology.

How Safe Is Fintech? 

In Brazil, two types of credit fintechs can be authorized to operate - for online intermediation between creditors and debtors: the Direct Credit Society (SCD) and the Society of Loan between Persons (SEP), whose operations will be included in the Credit Information System(SCR). 

According to the Central Bank, fintechs have been regulated since April 2018 by the National Monetary Council (CMN) - 4.656 e 4.657.

What are Click Cash's differentials 

Our co-founder, Douglas Murdoch, points out that "Click Cash is a fintech that has come to de-bureaucratize and facilitate access to credit in Brazil, through a 100% mobile process. Through the analysis of cell phone data, we were able to increase security, approval rates and predictability". In this online loan process, you can request the credit in a few minutes and receive the money in your account within one business day.

In addition, here you can get the personal loan without collateral, with installment payment in bills of up to 24 times. 

Do you understand what a fintech is now? These companies have arrived to improve their relationship with finance and technology and will continue creating new solutions for old difficulties.

Leave a comment below with other questions about this and other issues of the financial sector!

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