Fintech (financial technology) what is it?
Fintech is a parabank (an entity that conducts activities that are characteristic of a bank based on regulations other than only the banking law.)
Poland’s fintech industry is rapidly growing, with many entrepreneurs and startups arising in the field. The country has a strong financial infrastructure with a large banking sector as well as an advanced telecommunications network. There is also a large and diverse talent pool of developers and innovators who are eager to invest and develop new fintech solutions.
Fintech is also playing an important role in Poland’s digital transformation, with a number of banks and financial services providers utilizing the latest technology to increase efficiency and improve customer experience. I will not raise the issue if it is good that we are going in the direction of removing all the physical money.
Fintech’s like Zen or less known such us Monese, Monzo (few months ago Revolut was the most popular Fintech in this industry, but now transformed into a real bank working under bank law). do not use physical facilities. Most of them have only virtual offices where you can not go and get your banking things do. Every time you want to contact your bank, you have to do it via “live chat” or email which makes it difficult to quickly settle your banking matters.
Fintech’s operate based on technical accounts attached to the card. Which can be an advantage for some people that they are not subject to enforcement proceedings and are free from bailiffs or the tax office.
Final words
Fintech has the potential to revolutionize how people manage their finances, but it is important for those considering using a fintech service to understand the risks associated with it. While fintech may offer convenience and flexibility, users should be aware of any security concerns related to privacy of data and other financial details. Additionally, they should consider potential additional costs such as transaction fees or interest rates when deciding whether or not to use a particular service. In order to make an informed decision, it is essential to research any fintech service thoroughly before signing up.
What is your opinion about those parabanks? Do you use them?
Let me know in the comments down below.
Sources : https://www.knf.gov.pl/en/MARKET/Licensing_and_registration/Banking/Banks/Banking_operations_and_other_types_of_activities_permitted_to_be_conducted_by_banks