Question

Financial technology, also known as FinTech is an industry composed of companies that use new technology and innovation with available resources in order to compete in the marketplace of traditional financial institutions and intermediaries in the delivery of financial services.

The use of mobile apps is embedded in the average Mauritian’s everyday life while the country already provides services such digital insurance, mobile banking amongst others.

Several enterprises, particularly those aiming towards Africa, are already using Mauritius as a viable Fintech platform. The stable business climate and well-established corporate governance culture in Mauritius, favorable time zone, excellent connectivity and highly-educated labour, mitigates the high-risk profile of certain African countries.

Question:

Select a local company of your choice which provides FinTech services and: Explain the services provided by the chosen company & justify why the provided services falls under the FinTech umbrella of technologies.

Answer to be around 1500 words

Answer 1

The modern economy needs tools that are updates and can give instant results. In the economy of 21st century the organization is lead by service sector more than the production sector. One such service about the sector in financial services

There are various tools provide by the Fintech firms for different different sector. These tools help the customer to learn the new way of technology. The investment in fintech is approximately 20% higher every year.

There are situation where the people are using cash and may not have bank account or may not have credit score. In these saying raising loans from bank is typical issue which is time consuming. For these there are instant remedy fintech services.

Fin Tech as discussed above means the technology used in assessing the financial service. In this era the technology and the software are used in transactions that may include mobile payment, PayPal. In a layman language it is used as digital money.

The practices of Fintech are followed by many companies in their day to day operations. The elimination of paper cash has increased the space for this system.

In the era of 2014-2017 these firms have gained a lot and the year 2016 was the explosive year where mostly all the transaction were carried using the gateway of these websites and companies only.

The Company I will be discussing about is GoFundMe

Name of the company: GoFundMe

Incorporated: May 10, 2010

By: Andrew Ballester

It is basically the company based in America associated with crowd funding and earning profits on that basis. It helps the people to raise money on this platform in the various events.

Now, what are the services associated with GoFundMe

• Crowd funding is the way which help this company to raise money using internet on the online portal. Various individual and business pool their money for some particular event
• If we talk about the normal procedure one has to visit bank need to make application and thereafter apply for loan. This company eliminated the bank role as it helps to communicate the lender and the buyer directly without interference of banks. Hence it reduces the time and instant loan application is submitted.
• Recently there is public emergency going all over the world. Supporting the Country and the economy becomes the prime responsibility of the citizen. These types of companies help the nation to collect the fund from all over the nation and depositing it into the required fund's Account.
• The targeted audience is the individuals and business model. This activity is often used in startups or any pandemic situation.
• There other service includes
  • Campaigns on social media, and knowledge about the funding process.
  • raise funds for online games and websites
  • collection of donation, or individual charity platforms
  • Employees of the company can itself be the member and can raise fund according to their choice.
  • Other than commercial fund raising they are using the platform to support medical fund raising
  • The every campaign conducted by them adds the value to the event and even help them to earn profits.
• The working of the company is like the buyer contacts the company reports the event for which he wants to raise funds and if the event is in line with the terms and policy of the company campaign is formed on the entire possible platform where individuals and business invests. The company pitches about the event to every possible campaign and then collect funds.
• Many other companies used this company to raise funds. For e.g. the online gaming zone have developed a lot these days. People from all over the world can play my investing the money in their denomination to this portal. The company creates the gateway which will direct the payment to the GoFundMe campaign and the transaction takes place.
• Signing up with the account agreeing to the terms and conditions thereafter creating the campaign of the company's website along with the total amount needed for that even thereafter selecting the title and the person for whom the money will be raised. The company needs thereafter basic information about you and if the raiser is individual or any business startup.
• Thereafter letting people know about you i.e. pitching and creating the campaign thereafter managing it.
• Sometimes this company was used to create fund in defending the legal penalties. However recently they are thinking to withdraw this type of campaigns.
• In maximum two days the campaign has the ability to raise approximately $25, 0000 funds.
• The CEO of the company Sir Rob Solomon used to earlier charge for the personal campaign however the no fees model of the company has attracted the large USA population to invest and create their own campaign. The fee of 5% has been eliminated for the personal campaign of USA
• All this functions using one domain only however Solomon said that they are planning to make two domains one for the donation and one for business purpose.
• Think of a situation where you have recently resigned from the company and you have hand some amount of bonus with you. Now you want to go for incorporation a new business. The starting involves funds and capital. Therefore crowd funding is the best option in that case. With minimal formalities and the reason of funds you can opt this website to start your own campaign
• Hence it is digital platform providing services to all the sector and for all the events.
• The tradition way of using the banks and loans has been eliminated in most of the parts of USA as digital funding has been explored more.
• The Small Medium Enterprises are using this app recently. In the public emergency situation of Corona Virus where maximum business operations are shut but still the rent of the factories have to be paid The employees of the companies have to be paid. The businesses are shut down for the time being but not the expenses. In this situation use of this type of company is utmost important as people are ready to hear the pitch and the richer one are even ready to help.
• Even GoFundme has recently raise $200000 for the Corona Virus Fund and to help the needy ones.
• The services provide from their end helps the customer to meet their demand which in return helps the company to create the brand loyalty. By doing this there will be promotion of the app every time it is recommend. Hence when one person of the family uses it and is successful is raising funds that automatically attract the near and dear ones.

CONCLUSION:

From the above discussion it is clear that fintech helps to built the technology where resources are used in such a way that digital money are encashed and profits are earned. The other services includes raising campaigns, raising funds for medical help or even used in Insurance sector or mobile banking app etc.