The Fintech definition comes from the conjunction of the words Finance and Technology, and focuses on activities involving the use of new technologies in the design, supply and delivery of financial products and services.
Financial companies work with huge product-related data, linked to optimizing a range of investments for an end user, in order to amplify the return, assess the risk of a company's or country's economy, predict stock markets or anticipate a financial crisis situation; even evaluate the price of very sophisticated financial products.
In these situations, Fintechs use advanced data analytics tools, as well as artificial intelligence and machine learning algorithms. In this regard, so-called supercomputers and quantum computing are of great relevance. A quantum computer uses cubits to perform operations instead of the traditional bits of classical computers, which allows us to solve calculations much faster and even solve problems that a conventional computer could not unravel.
To the extent of analyzing large volumes of data related to economic variables, Fintechs take great importance in analyzing customer data to know their preferences, consumption habits, the use they make of their assets and thus be able to offer them services and solutions tailored to their needs.
In the Fintech world, DLTs or distributed log technologies are very relevant, in other words, these are databases managed by several participants, which are not centralized and most likely come from different clouds in microservices format.
There is no central authority to act as arbiter and verifier. The distributed registry increases transparency, making any type of fraud or manipulation more difficult and the system is more difficult to hack, a clear example being the Blockchain.
Another key of the new technologies applied to the activity of financial institutions is the use of cryptocurrencies as a form of electronic payment with the absence of a tangible format.
And also related to payments and their security, user authentication systems based on biometric parameter recognition are of great importance. We could mention fingerprint, eye iris or retina analysis, voice analysis, vascular patterns or heart rate. This is possible thanks to new IoT technologies that allow us to manipulate them.
Small robots (BOTs) for automated and autonomous assistance to end users and customers or even cybersecurity are other challenges to be faced by the Fintech sector.
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