Tuesday, June 30, 2020
Fintech
So what is Fintech? Fintech is a broad term, covering direct money
transfers, crowdfunding, and direct to consumer lending. But an
important part of fintech is embedding financial products
in everyday consumer and business products. For example, Amazon offers
free credit on every purchase, although it is often better to use an
Amazon credit card for a 5 percent discount, assuming that you pay your
credit card bill every month. Of course the Amazon credit card and the
Apple credit card are actually fintech services as well. But Amazon went
even further, partnering with Goldman Sachs to offer small business
loans of up to $1 million to its merchants. Shopify has also rolled out
loans to its customer base, loaning out over $750 million to date. A big
advantage for existing companies in offering financial products to
existing customers is a built-in client base, as well as knowledge of
what financial services a customer may need.