Freight transportation is a fast-paced industry requiring constant action t...
What is FinTech?
Fintech, or financial technology, refers to the application of technology and innovation to provide financial services and improve the efficiency of financial systems. It encompasses a wide range of technological advancements and digital solutions that are used in various areas of finance, including banking, payments, investments, lending, insurance, and more.
Fintech companies leverage cutting-edge technologies such as artificial intelligence, blockchain, cloud computing, data analytics, and mobile applications to create new financial products, services, and platforms. They aim to enhance the speed, convenience, accessibility, and affordability of financial transactions and services for individuals, businesses, and institutions.
Examples of fintech innovations include online banking and mobile banking apps that allow customers to manage their accounts, transfer funds, and make payments using their smartphones. Peer-to-peer lending platforms enable individuals and small businesses to borrow and lend money directly without involving traditional financial intermediaries. Digital wallets and payment systems facilitate seamless and secure electronic transactions. Robo-advisors use algorithms to provide automated investment advice based on individuals’ financial goals and risk profiles.
Fintech has disrupted traditional financial systems and institutions by challenging traditional banking and financial practices. It has democratized financial services, empowering consumers with greater control and access to financial tools and resources. Fintech innovations have also enabled financial inclusion by providing services to previously underserved populations who lacked access to traditional banking services.
RELATED articles
OTHER TERMS BEGINNING WITH "F"
- Factor
A factor is an intermediary that offers companies immediate cash or financing by buying their accounts receivables. Essentially, a factor is a financial entity that agrees to provide the company with the value of an invoice, deducting a certain amount…
- Factoring
Invoice Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (invoices) to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to…
- Factoring Advance
A cash advance to a Client (usually by wire transfer or ACH) for 80-90% of the value of the purchased and verified Invoice. Our goal at ECapital is to verify and fund the same day as invoice receipt (if before…
- Factoring Company
A factoring company is a financial institution which buys the accounts receivables of your businesses. The factor can buy your invoices taking the credit risk on a non-recourse basis. A factoring company can also offer you other services including risk…
- Factoring Discount Fee or Factoring Rate
The Factoring Discount Fee or Factoring Rate is the cost to you for Invoice Factoring, A/R Management, and Credit Protection from eCapital. It is typically based on your monthly volume and creditworthiness of your Customers (the Account Debtors) and can…
- Factoring Line of Credit
Factoring Line of Credit is an alternative financing option that's unique to eCapital. Acting much the same as a business line of credit, it provides access to funds as needed with fees paid only on funds drawn plus a small…
- Factoring Master Agreement (FMA)
A Factoring Master Agreement is a legal contract between a business (the client) and a factoring company (the factor). Factoring is a financial transaction where a business sells its accounts receivable (invoices) to a third party (the factor) at a…
- Factoring Receivables
Factoring Receivables is a type of financing where a business will sell its good invoices to a factoring company. Invoices can be sold on a recourse or non-recourse basis. Factoring Receivables is not bad debt collection.
- Factoring Reserve
The first payment to your company, the Factoring Advance, is typically 80-90% of the invoice value and is made once the invoice is received and verified. As stated above, our goal at ECapital is to verify and fund the same…
- Federal Acquisition Regulations (FAR)
The Federal Acquisition Regulations (FAR) is a substantial and complex set of rules defining the federal government's purchasing process with suppliers. Selling to the government can be a great way to grow your small business, but it can be intimidating.…
- Financial Distress
Financial distress is a term in corporate finance used to indicate a condition when promises to creditors of a company are broken or honored with difficulty. This is generally due to high fixed costs, illiquid assets, or revenues sensitive to economic…
- Financial Statements
The Financial Statements are the Income or Profit & Loss Statement and Balance Sheet of a company, which report the company’s sales, expenses, and profit (income statement) and its assets, liabilities and net worth (balance sheet). Financial statements can be…
- Financing
Finance is an all-encompassing term dealing with the allocation of assets and liabilities. It can describe the management of large dollar amounts by governments or Fortune 1000 companies. It can also describe the small business using invoice factoring or getting…
- Fixed Asset
A fixed asset, also known as a tangible asset or property, plant, and equipment (PP&E), refers to a long-term, physical asset held for use in the production or supply of goods and services, for rental to others, or for administrative…
- Fixed Interest Rate
A fixed interest rate is when a rate of interest for a loan does not fluctuate and remains the same throughout the term of the loan.
- Fixed Rates
In agreeing a rate card with a staffing supplier, it may be possible to negotiate uniform, fixed candidate bill rates that are pre-determined for each job title. Such Fixed Rates are generally related to job title, job description and geography.
- Fixed Terms
Fixed terms typically refers to specific conditions or parameters that are predetermined and remain unchanged for the duration of an agreement or contract. In various contexts, fixed terms may refer to agreements related to loans, leases, employment contracts, or other…
- Flat Bed Trucking
Flatbed trucking refers to a type of transportation service that utilizes flatbed trailers to haul cargo. Unlike enclosed trailers, flatbed trailers do not have sides or a roof, offering an open platform for loading and securing various types of freight.…
- Floor Plan Financing
Floor plan financing is a specific type of inventory financing used primarily by dealerships that sell consumer goods such as automobiles, recreational vehicles, boats, and large home appliances. This financing solution allows dealers to borrow against the inventory they hold…
- Forbearance
In the context of finance, forbearance refers to a temporary postponement or reduction of loan payments, often granted by a lender to a borrower who is experiencing financial hardship. This can be due to job loss, medical emergencies, or other…
- Forbearance Letter
A forbearance letter is a written agreement between a borrower and a lender, in which the lender temporarily allows the borrower to either reduce or suspend their loan payments for a specified period. This arrangement can be beneficial to borrowers…
- Fraud
Fraud can be any number of dishonest practices whereby a client and/or Account Debtor attempts to defraud a factoring company.
- Free on Board (FOB)
FOB is an acronym for "free on board". In the US FOB is commonly used when shipping goods to indicate who pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers from shipper to…
- Freight Bill
A freight bill, also known as a freight invoice or shipping invoice, is a document issued by a carrier or freight forwarder to the shipper or consignee detailing the charges for the transportation of goods. It serves as a receipt…
- Freight Broker
A freight broker is an intermediary between shippers (companies or individuals who need to transport goods) and carriers (companies that provide transportation services such as trucks, trains, ships, or planes). Freight brokers do not own transportation assets like trucks or…
- Freight Factoring
Freight factoring, also known as transport factoring, trucking/truck factoring, and freight bill factoring takes invoices and turns them into cash. Instead of waiting for 30, 60, or 90 days to be paid, freight factoring unlocks money already earned, so you…
- Freight Recession
A freight recession refers to a period of reduced demand for freight transportation services, leading to decreased shipping volumes and lower revenues for companies in the freight industry. This can be a result of various factors, including a general economic…
- Front Office
In a staffing context, the Front Office is part of the tech stack used to underpin the services of a Staffing Firm. The Front Office consists of three inter-dependent applications: Customer Relations Management (CRM), Applicant Tracking System (ATS) and Requisition,…