“FinTech” has come to be seen frequently in financial and investment-related news and magazines. In US as well, new financial services for individuals, such as household account book apps that incorporate this technology and robo-advisor investment, are attracting attention.

However, when asked “What is FinTech?”, I think there are few people who can explain it properly. Therefore, this time, I will explain FinTech, which is inseparable from IT technology.

What is FinTech?

FinTech (FinTech) is, ” Fin Ance” (financial) and ” Tech Nology” is a coined word that is a combination of (technology)

It may also refer to the global movement of the last few decades, which continues to actively provide new services for finance, services, financial settlement, etc. by making full use of the following advanced IT technologies centered on IT companies and venture companies.


Authentication technology (highly reliable technology such as biometric authentication)

API (Application Programming Interface: Connection specifications for using OS and application functions, etc.)

IoT (Internet of Things: Internet of Things <Mechanism of connecting various things to the Internet and controlling each other by exchanging information>)

Big data processing and analysis technology

  • AI (artificial intelligence)

FinTech x financial services

FinTech is about to make a big difference in the business world. New services are being created one after another in fields such as financial management, fund procurement, settlement and remittance, and are beginning to be used in various scenes.

  • Financial management

The cloud accounting service that can be used if you have an internet environment and a personal computer is a typical example of FinTech. It is widely used by small and medium-sized enterprises and sole proprietors because of its advantages such as low initial investment costs and the ability to manage tax electronic filing and forms with data.

  • Settlement / remittance

Services such as online payment, small-lot remittance, and electronic money. By utilizing smartphones and tablets as payment terminals, it is in this field that card payments, which had a heavy burden of introduction in small stores, have become widespread. In addition to PayPal and Square from PayPal, which is the origin of FinTech , services such as LINE Pay and Coiny , which are convenient for splitting the bill and remittance between individuals in US, are applicable. Blockchain technology is also attracting attention as a new payment and remittance method.

  • Financing / financing

If you are an individual or a company and want to raise funds from a non-existing financial institution, “crowdfunding” is probably the most popular. We are soliciting funding via the Internet, but FinTech also supports the smooth operation of crowdfunding. Typical examples are those that take the form of donations (US, Kickstarter) and those that have financial benefits to supporters because the borrower pays with interest. In addition, there is a growing movement to utilize AI (artificial intelligence) for credit decisions when making loans.

  • Asset Management

Services that utilize big data. There are robo-advisors that propose and execute optimal asset management, and theme-type investment services that select from investment themes divided by industry and field, and it is characterized by being able to manage assets at a small amount and at low cost. It is said that FinTech has been used for asset management by venture companies such as Wealthfront and Betterment in the United States. Even in Japan, major financial institutions are following WealthNavi and Money Design (THEO), and it can be said that companies are actively entering the field.