Fintech

What is Fintech? 

Fintech can be defined as the combination of financial services with new technological innovations. Fintech activities can be found in many areas of the financial system, including payment processing and credit granting.  

What is a Fintech company? 

A Fintech company can be, for example: 

• Established financial institutions, working in acquisitions or partnerships with startups to drive technological innovation. 
• Large tech companies that are active in financial services, such as Apple, Google, and Facebook. 
• Upstarts, which focus on a specific technological innovation or process, are often start-ups.   

Digitalization of financial services 

Fintech involves the digitalization of various services within the financial system. It allows fintech companies to take market share from traditional financial institutes. Fintech companies often have newer and more modern systems than traditional institutes and can therefore more easily provide more modern solutions to different financial services.  

The emergence of Fintech 

Fintech companies can become large in countries where there is a high use of digital services. In Sweden, for example, various digital payment services have emerged rapidly, while traditional payment methods such as cash have declined significantly as they are considered less convenient to use.   

Financial legislation 

Fintech companies, like other financial companies, comply with traditional financial legislation. However, Fintech companies are able to circumvent traditional legislation in some cases by using new technologies.  

In general, Fintech companies must apply for a license from the Swedish Financial Supervisory Authority (FI) to conduct their activities and are also subject to FI:s supervision. Depending on the activity in which the Fintech company operates, they must comply with that legislation.  

Advantage Law Firm for your Fintech questions 

If you want help with questions in Fintech, contact the team at Advantage today by telephone at 08 – 20 21 40 or by e-mail at info@advantage.se