Insuretech: Insurance companies are known for their conservative approach to risk management and long-term investments. They can be considered a fintech company because they use information technology to manage risk, but this is not the core business of most insurance firms. Some insurance firms deliver their services directly to consumers through mobile apps or via USSD.
Lending fintech companies: These businesses provide loans or other financial services to individuals and small businesses digitally. They have credit scoring mechanisms that leverage AI and data analysis to understand the creditworthiness of their clients. They also take advantage of technology to remotely verify user identity and asses their risk levels.
Payments: A payments company provides money transfers between users’ accounts in real-time using software applications like Venmo or PayPal. This mode of payment moves people from using physical cards and cash money to paying digitally using apps or even sim cards as experienced in east Africa through M-pesa.
Digital cards provider: Some fintech companies major in issuing digital cards. This is a solution that enables users to pay internationally while using digital cards. It is a service that can be offered by other fintech companies as an add-on to its clients.
It is worth noting that these are not the only types of fintech companies that exist. There are many that I have left out including group savings, group lending, investment fintech, and trading fintech companies. The list goes on and on.
What other type do you think has been left out?