Fintech boom: Explore this investment opportunity!

Discover how this industry is transforming financial companies.

 

The growing role of technology in the financial sector is incredibly important. It not only helps us understand processes better but also makes them more efficient. As part of this shift, fintech companies are emerging. They use digital platforms to provide services that are more accessible and quicker.

Fintech, a blend of finance and technology, refers to companies that provide services like transactions, building financial security systems, market negotiations, and payments. Their aim? Making financial processes simpler and boosting cost efficiency.

 

Main types of Fintech

Based on the services or products they provide and their business model, we can categorize Fintech companies in the following ways.

Payment methods and transfers: You can use mobile or electronic devices to pay for products and services, as well as to make transfers.

Online loans: With this platform, individuals and businesses can easily apply for affordable loans.

Crowdfunding: This type of digital tool seeks to collect donations from people who contribute money to a project, either altruistically or with some benefit related to the proposal.

Infrastructure for financial services: This type of fintech seeks to offer users information about their financial risks, business insights, and electronic contracts, among other features.

Big data: The goal is to analyze vast amounts of information, which requires powerful processing tools to handle the data effectively. This data serves as a foundation for companies to make informed decisions.

Blockchain: This technology enables users to securely buy and sell cryptocurrencies, explore cryptocurrency blocks, and access mining-related technological solutions.

Photograph: Shutterstock

 

Benefits of Fintech

One major benefit of these companies is they offer broader access to a range of financial services. This means anyone with internet access can easily open an account and apply for credit.

Another significant advantage is how it makes accessing different financial products easier and more democratic. Plus, since everything is done online, most of the time there is no need to visit a physical branch, saving users a lot of time. 

 

Fintech in Peru

In the past few years, Peru has become quite the hotspot for fintech companies to flourish. As per the Finnovista Fintech Radar Peru 2023 report, the fintech scene in the country has been booming with an impressive annual growth rate of 20.9 %. To put it simply, from the initial 132 projects, the number surged up to 193 in 2023, marking a significant increase of 61.

Based on the report, around 30 % of fintech companies in Peru have integrated Artificial Intelligence (AI) and Machine Learning into their operations. This highlights the strong dedication of these firms to enhancing their services.

In Peru, these companies are known for offering B2B (business-to-business) solutions, delivering products and services customized to meet their clients' needs. The standout types include those specializing in digital payments, investment platforms, loans, and online financing.

Fintech companies are making their mark in the market, offering vital solutions to the varied requirements of financial service users and providers. Peru anticipates ongoing growth in this sector, paving the path for a more digital future in its financial landscape.

 

Photograph: Shutterstock