What is Fintech and how is it changing the world of finance?

In recent years, one word has been gaining prominence in the economic and technological world: Fintech. You’ve probably already heard it in conversations, on social media, or even in the news. But… what does fintech really mean? And why is everyone talking about it?

In this article, we will dive into this concept to understand in simple terms what’s behind the term, how it’s impacting our personal and professional finances, and why it might be relevant for you.

What is fintech?

The word fintech comes from the combination of “financial” and “technology”. It refers to companies or services that use advanced technology to offer financial products in a more efficient, accessible, and personalized way than traditional institutions.

In other words, when we use an app to send money to a friend, apply for a microloan on our phone, or invest in the stock market without going through a bank, we are using a fintech service.

A quiet (but unstoppable) revolution

Although it may seem like a recent phenomenon, the fintech sector has been transforming the financial landscape for over a decade. However, it is in recent years, with the rise of smartphones, the growth of e-commerce, and the demand for more agile solutions, that this transformation has exploded.

According to the “Global Fintech Adoption Index” by EY (2021), 64% of the global population already uses a fintech solution. And in markets like China or India, this percentage exceeds 80%. In Spain, more and more users are choosing 100% digital banks, automated investment platforms, or fintech tools to manage their personal expenses.

Why are fintechs gaining ground?

There are several reasons, but three stand out:

Accessibility

Many people who didn’t have access to traditional financial services now can, thanks to technology. With just a phone and internet, you can open a bank account, save, invest, or apply for credit.

Speed and simplicity

The bureaucracy typically associated with traditional banks is minimized. In many fintech apps, creating an account or applying for a loan can take just a few minutes.

Personalization

Thanks to data and digital analytics, fintech companies can offer products tailored to each user’s specific needs. Saving for a trip is different from saving for retirement, and these platforms understand that well.

Types of fintech solutions that are changing everyday life

The world of fintech is vast and diverse. Here are some examples of what is already available and what’s coming soon:

Digital banking

Neobanks like N26 or Revolut have disrupted the market with commission-free accounts, full mobile control, and features designed for a digital generation.

Payments and transfers

Bizum, PayPal, or Stripe are just a few tools that allow you to send and receive money almost instantly. Fintechs are particularly simplifying international payments, reducing costs and wait times.

Investment and savings

Platforms like Indexa Capital or Finizens allow you to invest in index funds automatically, with low fees and no need to be an expert. Additionally, many apps help you save by rounding up your purchases or creating virtual “piggy banks.”

Loans and financing

Thanks to data analysis, fintech companies can offer personal loans or lines of credit quickly and flexibly, even to profiles typically rejected by traditional banks.

Financial education

Some fintechs also have an educational role, helping users better understand their finances. Apps like Fintonic or Goin show you where you spend, how to save, and how to improve your financial health.

The role of Artificial Intelligence in finance

One of the driving forces behind the growth of fintech is undoubtedly Artificial Intelligence (AI). Thanks to AI, many of these platforms can:

• Analyze large volumes of data to detect fraud in real-time.
• Predict user financial behavior.
• Offer personalized savings or investment recommendations.
• Automate processes, reducing human errors and improving efficiency.

For example, some fintech platforms use smart chatbots to resolve inquiries 24/7, or algorithms that create investment portfolios tailored to your profile and goals.

What role does Founderz play in the fintech ecosystem?

At Founderz, we focus on accessible, practical training aimed at the real world. We know that fintech is not just the future of finance, but the present, and we want professionals in the sector, whether they have prior technology experience or not, to understand it, use it, and even actively be part of this change.

That’s why in our certificate program in AI and Innovation, we include up-to-date content on fintech, artificial intelligence, blockchain, and other key pillars of the new financial landscape.

Are we at the end of traditional banking?

Not exactly. Although the rise of fintech has forced traditional banks to reinvent themselves, both models are learning to coexist. In fact, many traditional financial institutions are creating their own fintech solutions or partnering with fintech startups to avoid falling behind.

What does seem clear is that the user wins. With more options, more transparency, and greater decision-making power, we are increasingly in control of our finances.

What should you keep in mind as a user?3

Before jumping into any fintech app or platform, here are some basic tips:

• Research well: make sure the company is regulated and has a good reputation.
• Read the terms and conditions: especially regarding commissions and data protection.
• Compare before deciding: like any service, there are alternatives with different advantages.
• Keep learning: understanding what you do with your money will always be an advantage.

Fintech has come to stay. It’s not just a trend; it’s a deep transformation in how we manage money. What was once reserved for large banks or financial advisors is now within reach of anyone with a phone.

Understanding what fintech means is a step towards greater financial autonomy, more informed decisions, and a more inclusive economy.

And you, are you ready to be part of this change?

If you want to learn more about fintech, artificial intelligence in finance, and how to leverage technology to improve your professional life, don’t hesitate to contact us. Because knowledge is also a form of investment.

This post is also available in: Español