The contribution of FinTech companies to the financial sector and to society
The financial sector, one of the main sectors of the economy and of society, has gone through a remarkable evolution over the decades and centuries, mainly in terms of the services it offers and the improvements it’s made in order to adapt to changing times and offer clients more comprehensive services. However, this traditional sector has experienced an even more profound transformation because of the technological advances of the last two decades. While those changes have been considerable, its ability to adapt has perhaps not shown the agility it could have.
Maybe for that reason, and because of their responsiveness to the times, a new type of company has appeared that, unlike “classic” companies, has been able to capitalize on the advantages offered by technological improvements. We’re talking about FinTech companies, a term that merges the concepts of “Finance” and “Technology.” These new participants in the financial sector have concentrated their efforts on improving and automating the services and processes of the financial market through innovation. They have become more flexible than their competition and more accessible to their clients.
They offer varied services and products that cover asset management, investments, mobile banking, financial consultation and private and institutional financing. Although the beginning of this trend began in 2008, it’s been less than a decade since its impact on society has become clearer. Its success has not only encouraged traditionally operating companies to solicit their collaboration, but has also made them intensify their efforts to innovate in order to avoid losing their share of the market in the face of these innovative options.
Innovation is certainly at the core of FinTech companies. In fact, some of their initiativeshave been quite disruptive and have provided optionsthat correspond to current consumer trends. NAGA, one of the main FinTech companies today, is a good example of this. With a focus on investment, NAGA has taken the extra step to become a Social trading platform that facilitates contact between its traders so they can share information, concerns, experience, etc. This company has created asimple and accessible environment that democratizes these transactions and it provides tools that make its app a comprehensive option for those who want to enter or evolve in the investment world.
For example, in addition to its social element, it has introduced training tools for its users. It also provides access to updated information about the different assets that can be traded, from CFDs and raw materials to real stocks and Forex, graphs regarding xauusd, cutting-edge companies, the indexes of different countries, and much more. It also offers options like NAGA Auto Copy that imitates the transactions of more experienced traders, and NAGA Pay, a Visa debit card that can be used to make payments. NAGA represents a new generation of companies that seeks to reach out to the general population and provide new possibilities that arise from technology and innovation to adjust to changing times and society’s demands.
At a time when many “traditional” companies are reducingpersonnel, FinTech companies, like tech companies in general, are creating new jobs for a diverse set of professionals: engineers, programmers, and experts in security, finance, marketing, sociology, etc., but with thegoal of adapting to the times. They want people who understand their profession as well as the possibilities of technology. Naturally, as a career option, it’s one that offers incredible opportunities thanks to its unparalleled growth. If in 2020 its valuation was around $7 billion, in 2025 it could skyrocket to up to $31 billion. These figures give us an idea of the reception FinTech companies have had from the general public since their emergence, and their ability to adapt to new market demands has a lot to do with it.
