The fintechs have brought innovations that are changing the way companies do business. Some of them involve the use of blockchain and cryptocurrencies. Loans and smart contracts are among those solutions. See the list published by the Entrepeneur with the main trends in this segment.
Low-cost crypto loans
Fintechs have allowed small businesses to access loans that were previously available only to large companies. They meet an important need when resources are lacking for small but crucial expenses. In addition, when they are issued in cryptocurrency, less regulated, they offer lower interest rates.
Blockchain to offer more security to transactions
Many fintechs have used the blockchain to give more security to transactions and eliminate the need for validation by third parties.
Enhanced security in online environment
Securing payment transfers has become a crucial area of fintechs innovation. These companies offer point-of-sale services that use VPN and firewalls to ensure the security of information. In addition, fintechs that keep credit card data from customers in online environment have begun to implement advanced systems that are resistant to hacker attacks. Data privacy laws are also another concern that is served by them.
Artificial intelligence as the financial advisor
AI combines algorithms and machine learning to develop ‘robots’’ capable to provide high-level financial advice without involving high costs.
Smart contracts are innovations that give security to business
Smart contracts allow parameters to be encoded in a contract and the contractual conditions to be executed automatically, once certain conditions are fulfilled. This system should help people around the world to do business without concerns. They are perfect for unsafe business environments due to local regulations and other factors.