Start-ups enter the market with new IT-based business ideas, as they offer digital services for financial transactions. FinTechs develop innovative solutions to save, invest, borrow, transfer, spend, and protect money.
It involves internet platforms that bring together borrowers and lenders using the peer-to-peer principle (with no visible need for banks), cloud-based payment methods, and cryptocurrencies such as bitcoins that make cash unnecessary. Based on networks and communities, these social innovations are extremely customer-oriented. Thanks to the mobile internet, they are available anywhere and anytime, which makes them considerable time and cost cutters.