Post by asadul5585 on Feb 22, 2024 3:22:24 GMT -5
If you want to know the difference between fintech and digital banking, you've come to the right place. This question is quite common, because the two terms are treated as synonyms. Even in reports and interviews it is common to see journalists calling a company a fintech and soon a digital bank and vice versa. This happens because the two terms are linked to technology applied in the financial sector, with the aim of simplifying the lives of bank and similar customers with innovation. What happens is that not every fintech is a digital bank, but the majority of digital banks are fintechs. Shall we understand more? What is the difference between fintech and digital banking The term fintech comes from English and combines the initials of financial technology , which we can translate as “financial technology”. In other words, we have the combination of fin (financial) and tech (technology) to arrive at fintech.
The Central Bank of Brazil also has a definition of: “Fintechs are companies that introduce innovations into financial markets through the intense use of technology, with the potential to create new business models. They operate through online platforms and offer innovative digital services related to the sector”. This is why we can define that fintechs operate entirely Kuwait Mobile Number List online, via the internet or mobile app, and do not require a physical structure to function. The biggest advantage of this is cutting costs by delivering cheaper services compared to the costs of traditional financial institutions. The most common examples are credit cards with no annual fee and checking accounts with no fees. E-book achieving zero default Services offered by a fintech Furthermore, the convenience and practicality of doing everything via cell phone makes financial services more accessible to the population.
Services offered by digital banks Therefore, the services offered by digital banks are the same as traditional banks, such as: Opening a current account for individuals Customer service Digital bank for legal entities Balance inquiry Sending and receiving transfers (TED, DOC and PIX ) Provision of statements and receipts Bill payments Simulation and granting of loans Credit card application Cash withdrawals can be made by transferring the amount to a traditional account or using the Banco 24 Horas network, in the case of companies linked to this system. Deposits can be made by bank slip . The biggest advantage for consumers, in addition to the practicality of doing everything without leaving home or wherever they are, is the reduction or even exemption from fees. As in the case of traditional banks, digital banks also need to follow the rules determined by the Central Bank of Brazil and are subject to supervision. In other words, they are considered banks like all the others and are therefore completely trustworthy, of course, when authorized by the BCB to operate.
The Central Bank of Brazil also has a definition of: “Fintechs are companies that introduce innovations into financial markets through the intense use of technology, with the potential to create new business models. They operate through online platforms and offer innovative digital services related to the sector”. This is why we can define that fintechs operate entirely Kuwait Mobile Number List online, via the internet or mobile app, and do not require a physical structure to function. The biggest advantage of this is cutting costs by delivering cheaper services compared to the costs of traditional financial institutions. The most common examples are credit cards with no annual fee and checking accounts with no fees. E-book achieving zero default Services offered by a fintech Furthermore, the convenience and practicality of doing everything via cell phone makes financial services more accessible to the population.
Services offered by digital banks Therefore, the services offered by digital banks are the same as traditional banks, such as: Opening a current account for individuals Customer service Digital bank for legal entities Balance inquiry Sending and receiving transfers (TED, DOC and PIX ) Provision of statements and receipts Bill payments Simulation and granting of loans Credit card application Cash withdrawals can be made by transferring the amount to a traditional account or using the Banco 24 Horas network, in the case of companies linked to this system. Deposits can be made by bank slip . The biggest advantage for consumers, in addition to the practicality of doing everything without leaving home or wherever they are, is the reduction or even exemption from fees. As in the case of traditional banks, digital banks also need to follow the rules determined by the Central Bank of Brazil and are subject to supervision. In other words, they are considered banks like all the others and are therefore completely trustworthy, of course, when authorized by the BCB to operate.