FinTech is a coined word coined from “Financial” and “Technology” and refers to financial services that make full use of IT. It is also called “ Neobank ” because it provides services such as settlement, financing, asset management, and stock trading that traditional financial institutions have been responsible for instantly across national borders.

It is a concept that has developed mainly in the United States since the Lehman Shock in 2008, and by utilizing IT such as the Internet, cloud, and big data for financial services that were almost monopolized by financial institutions, it becomes more convenient and more convenient. It refers to services that are offered at low cost and more quickly.



Five functions of FinTech

Asset management

It applies to both corporations and individuals, meaning digital management and real-time management. Services that can manage multiple financial institutions in a bundle for individuals, cloud-type accounting services for companies, automation of fund management by AI, investment advice, etc. are provided.


Financing means

Data, such as risk measurements, are automatically performed, dramatically reducing costs and facilitating procurement.



It has become easier to make personal payments and P2P remittances, making it possible to lend to individuals, which was previously difficult.



It means building infrastructure that supports FinTech itself, such as virtual currency, blockchain, and big data technology.



By obtaining biometric information from wearable terminals and utilizing sensor information of automobiles, detailed services will be provided according to individual situations.



Typical services


In the past, insurance required procedures such as going to the insurance shop’s window, consulting with the sales staff, requesting materials, quoting, and issuing a quote, which took time, but these procedures are done online. By doing so, we have succeeded in automatically outputting quotations, making insurance simpler and lowering the threshold.


Shopping site (E-commerce)

It is a FinTech service that anyone can easily create an online shop.
Representative services include Ebay and Base.


Security (ID)

This is a FinTech service developed as users’ online shopping, stock trading, and online banking are becoming more and more popular, and damages such as illegal remittances are also expanding. Most of them are measures against unauthorized login to prevent false users, and one-time passwords using a random number table are typical.
Representative services include BankGuard and Capy.


Banking Platform

This is a service that allows you to trade stocks, exchanges, and bonds more efficiently.



Remittance (Bussiness Solution)

With the remittance service, you can automatically transfer money just by entering the data without your own company, or you can register yourself as long as you meet the condition that you are on the same platform without giving the account number even between individuals. Money will be automatically transferred to your account, making remittance payments smoother. You can also split the bill by applying remittance.
Square Pay is typical for BtoB, and Google Pay is typical for CtoC.



Payments / Payment System

This payment service is the most representative of the many FinTech markets.
A typical example is Apple Pay, a mobile payment service that allows you to register credit information on your iPhone and make one-touch payments or in-app payments.
Online payment service “PayPal” that allows you to make payments without presenting personal information to the other party by creating an account in PayPal and registering credit card information,
“Square” is famous for making payments by inserting an IC card reader into the earphone jack of a smartphone or tablet in a private store without the need for a credit card reader.


Comparison of price

In price comparison, it is a service that automatically simulates and proposes insurance and loans that match the user’s choice from hundreds of thousands of companies in the industry such as insurance and loans from a neutral standpoint.




Strictly speaking, electronic money is also included in virtual currencies, but it does not fall under FinTech and refers to new virtual currencies represented by Bitcoin.
All electronic money is based on the currency issued by the Bank of Japan, and there are financial institutions that issue it.
However, new virtual currencies such as Bitcoin do not have banks or financial institutions that manage the currency, and computers with virtual currency software installed use the PtoP network to issue new currencies and provide information through blockchain. Is getting
Since it does not depend on the country or the central bank, it is not affected by the exchange rate when sending money and the fee is cheap.
Typical domestic virtual currency exchanges include bitFlyer and Coincheck, and typical virtual currencies include Bitcoin, Ripple, Ethereum, Litecoin, and Monacoin.


Analysis / Data management (Analitics, Date management)

Analysis / data management is a FinTech service that proposes market forecasts from data on various transactions related to money, such as stocks, bonds, and exchanges.
Representative companies include Alpaca and Orb.


Business support (E-invoicing, Accounting)

In the field of business support, there is an active work to simplify behind-the-scenes work such as corporate accounting and quotations .
AI-based services have become more convenient for business support, and the automatic sorting function by AI allows you to automatically enter transactions, and automatically creates accounting books and financial statements from registered transactions, and estimates. You can freely create various forms such as invoices, invoices, and purchase orders without programming.



Investment / Asset Management

In the past, asset management such as stocks and real estate was carried out in consultation with the sales staff of financial institutions. However, humans have psychological weaknesses and may not be able to make correct decisions.
The result was an attempt to entrust the asset management of money to AI (machine technology).
AI can derive super-rational answers without psychological weakness, and you can build an optimal portfolio of financial assets simply by answering simple questions on your smartphone.

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Alternative Lending

Crowdfunding is a typical example of this special loan. This is to recruit and raise funds on the Internet for people to fund the projects that users want to do.
Crowdfunding makes it easier for users to discover their projects by recruiting funders on the Internet, and it is possible to raise funds from an unspecified number of people. In addition, you can visualize the progress of the project. In addition, funders can support from a small amount, which has the advantage that users can collect a small amount of support without spilling it. Typical crowdfunding services include Kickstar.


Personal Finance

This is typically a household account book application, which reads the contents of receipts using the camera function of a smartphone, etc., and summarizes the income of those expenses by month or year to simplify and efficiently manage individual money. It is a work to do.



Impact of the emergence of FinTech

The existing financial industry needs to respond flexibly to the emergence of FinTech services that integrate IT and finance, which was not expected until now. In September 2014, the Financial Services Agency began full-scale discussions in the “Working Group on the Advancement of Payment Operations, etc.” and considered institutional reforms and infrastructure reforms in the three fields of retail, wholesale, and payment infrastructure. Has begun to proceed.


Retail field

Not only banks but also various businesses can participate in the diversification of payment services by mobile payments and small card payment readers. We will also build a system that emphasizes innovation through external collaboration with banks and promote collaboration with IT ventures.


Wholesale field

Clarified the first category of cash management services for major United states banks and expanded IT investment. We have created an environment that meets the financial needs of companies by promoting symbolic business development utilizing overseas bases.


Payment infrastructure field

The goal is to facilitate payment processing not only in Japan but also overseas. The different format items for domestic and overseas remittances, and the difficulty of remittances by non-residents in United states, prevent seamless payment processing. It is necessary to take measures to facilitate remittances not only in Japan but also overseas.



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