Differentiating Types of Fintech

E-Money is one of the types of fintech that you can find in Indonesia. Read the others!

In the digital era, the use of financial technology (fintech) product is widely spread in Indonesia. Many start-up companies start to develop their various products or services to use by many people. But, do you know all the types of fintech and the way how to differentiate them? Here is the explanation.

1. Crowdfunding

Many people in Indonesia are unfamiliar with the term crowdfunding or fundraising. Crowdfunding is a fintech start-up that provides the online platform for raising funds to be distributed to people in need, such as victims of natural disasters, victims of war, the project-making process, and so forth. This start-up creates a room where people can help the needy safely, faster, and efficiently. 

2. E-Money

The type of fintech that many people often use is E-Money. E-Money or electronic Money or is often called the electronic wallet in the digital world. E-Money is generally used to shop, pay the bills, or transfer, etc. through an application. The application can be downloaded on your smartphone. The application of E-Money features some links such as the link of the credit card and E-Money. 

3. Insurance

The fintech start-up in the form of the insurance offers you some services related to the insurance such as the information of the nearest hospital, trusted doctors, and hospital referrals. This start-up will collaborate with the providers or the trusted doctors and the best hospitals to help in organizing the health of the users of this insurance start-up. 

4. Payment Gateway

As the e-commerce company mushrooms in Indonesia, the growth of e-commerce companies also triggers more fintech startups to become the bridge between e-commerce with its customers, especially in terms of payment systems. The e-commerce services that are provided by this startup is called the payment gateway service. Payment gateways allow people to choose a variety of digital payment gateways managed by a number of start-ups, thereby the sales volume of e-commerce can increase significantly.

5. Peer to Peer (P2P) Lending

Peer to peer (P2P) lending is a fintech start-up that provides the online loan platform. One of the problems that many people encounter when starting a business is about the business capital. There is no business capital can be troublesome. This start-up begins with the idea that many people need the fund to open or develop their business. Many people can use the varieties of start-up companies that deal with P2P lending service. 

6. Remittance

Another type of fintech is remittance. Remittance is a type of start-up that focuses in providing money transfer facilities between countries. Many companies establish this remittance start-up in order to help people who do not have an account or access banking to the bank. The existence of this type of startup is very helpful to the migrant workers who want to send money to their family in Indonesia or anyone whose family members study in other countries. Using this remittance service is quite easy because the process of delivery is fast and the transfer fee is inexpensive.

In conclusion, the different types of the innovation of fintech aim to ease the transaction activities in Indonesia. The fintech start-up should obtain the legal permit from the Indonesian government to ensure that their products or services are safe for Indonesian customers.

Source:  https://smartcolaw.com/2018/11/06/bi...ports-fintech/