Where the Finance Economy is Leading: FinTech vs TechFin

Finance Economy

Where the Finance Economy is Leading: FinTech vs TechFin

The sayings are that the financial industry’s future is having two opportunities. The one where all the financial institutions go online i.e. online banking. The other way is internet finance which is totally led by the outsiders.

The financial sector is facing the huge inflow of changes coming on its way since the past few years. And now these changes are seemed never to stop in the near future. From traditional banking to the fiat currency to the digital currency, the financial sector is always at the urge to see and adopt the new changes leading their way.

Before the sector totally leans in for the adoption of digital banking, here comes the new trend towards its introducing itself as the future of the sector.

The soon making entry trend in the financial sector is TechFin. So, what is TechFin? And what can the impacts on the sector?

When we talk about FinTech, we have already had a closer view. The idea of FinTech is in itself a different one. Something that is getting the rise over the days is all having the questions about what is FinTech vs TechFin. What is the difference between these two terms? Where the financial sector will lay between FinTech and TechFin?

Let’s Try to Get the Answers for These Two Questions in this Article…

The modern FinTech began roughly ten years ago. The initiation was during the global financial crisis. Being initialized in the crises era, it provided great deals to the innovators to build the businesses, and we were introduced with the Square.

Moreover, with the economy getting stable, so did the hold of players. They entered to take some of the banking work away from the banks.

Since the Square and PayPal launch, it enforced the users to see the nonstopping age of the banking sector. The best was one after the other, new offerings kept on coming to the sector promising the new standards for the user experience.

The past was where we were unable to imagine the present we are facing. The moment today is where the finance and tech both are emerging with each and giving the new shape to the banking sector.

In addition, the FinTech apps have already made their place in the market. Now the moment is for the TechFin – the movement which will bring a huge shift in not just in the financial institutes but it shows the real existence reasons.

Before we dive into the ocean of the FinTech and see where the FinTech future is leading, let’s just go through the most awaited answer of the question – FinTech vs TechFin. What is the difference here?

FinTech vs TechFin

To be short and simple, the FinTech is the concept where the financial industry starts looking to improve with the help of technology for their customer experience.  TechFin is the solution where technology enters the banking sector to change the user’s interaction with the industry.

The top FinTech organizations are Google, Amazon, Facebook, and Apple (GAFA) in the US. But in China Baidu, Alibaba and Tencent(BAT) are famous.

Now that we have seen both the different concepts and the terms. Now let’s just talk about the different phases the financial sector has seen and analyzed the space the FinTech has occupied.

The Finance and Technology Evolution

Steps fintechThe rate at which the financial sector is evolving that can be in many ways to bring the perfect transformation in the domain.

What the finance was before the decade is not the same today and will not continue to be the same in the next decade. So let’s track the movement of finance and technology’s emergence.

Step 1: Exclusion

Initially, there was not the technology in the picture of the financial sector. The financial consumers would have to wait in the queue of the banks for any kind of transaction related to money.

Step 2: Mobile Payments

The next stage was when the payments, a small segment came on the mobile banking services. This was the era when the people who usually were habituated with the queues were now directly paying their bills and doing the transactions from their mobile devices.

Step 3: For Now – The Mobile Basic Banking

Knowing the ease of the digital revolution is providing the millions of their user base, many banking institutes also started entering the pace of mobile app development for their banks.

Moreover, the non-banking companies have also started to expand their offerings. They have entered the services of lending, credit facilities and many more. Now, the finance industry has entered into the competition with the technology firms to emerge as of for the best service provider. It is also known as FinTech online banking.

Step 4:  The Future of Banking Technology 2020 – Full-Service Mobile Banking

Now the financial industry heads out towards the competition is on stage four. It has only become much cut-throat. Here is the time to move on from FinTech to TechFin. The technology-based companies who have involved in the banking sector will only appear stronger than before. The financial institute will start evolving the technology at a more greater level.

Since we have had a look at the concept FinTech vs TechFin and their evolution. Now its time to move towards the in-depth details of what is TechFin and what are its benefits.

The TechFin Ecosystem

1. Customer Base that Allows to Experiment

The biggest benefits that are in favor of the TechFin is that the firm is able to attract the user base. The number which is much greater than the number of users a finance firm can acquire.

The other reason why the non-banking companies can attract more users is because of subconscious image. When someone uses the banking application, the user has the subconscious fear about something happening wrong. And this is not the case when the same services, the non-banking parent company offers.

2. The Great Technical Infrastructure

The reasons behind why the technological firm has the upper hand for the boasting of infrastructure excellence is very obvious. When the technology firm enters the financial sector, it is always ready to handle the millions of user flow in real time.

Additionally, even in the race of becoming the financial leader, the finance sector needs help from the technology firms to develop their infrastructure.

3. Better Data Management Mechanism

The whole data cycle of the TechFin is a lot better than the FinTech. The difference we can see in how the data in FinTech vs TechFin is a simple fact. The users are not just attracted but they feel comfortable in sharing their information with non-banking companies rather than the financial companies.

On the other hand, the financial sector struggles to get the users valid and quality data. With the technological companies, they just give the simple form to the users and users they themselves return it back with all the data filled.

Further, to manage the data, the system and algorithms required are ready for the availability to the technology company instead of the financial one.

4. Identical Regulation Sets

Unlike commonly assumed, the level of the regulation levied on the technological firms who enter the financial domain are mostly the same as the financial institutions offering the technology in their service. So, with this, there is hardly any legality in front of the TechFin to block their roads.


As I mentioned that the TechFin is paving the grounds to enter the financial sector and transforming the segments. But does it means that the traditional method of banking is at the urge to vanish?

The answer to every question for the financial economy is in the future, hidden in the economic system itself. Moreover, the time will arrive when the FinTech and TechFin will merge and will offer similar things if not competitive.

There will be the era when the benefits will lie between the FinTech collaborating with TechFin. The fact is regardless of how far and how big they grow, there will be some space left behind.

Additionally, to get the mixture of subconsciousness, carefulness and easy flowing user experience, the transformation of FinTech to TechFin is important. One thing is fixed, regardless of any merges. The destination of the banking industry is the change and not to operate in the ecosystem Generation X.


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