The development of Fintech is also closely related to these four fields. The earliest fintech companies to enter this field are eyeing the payment field. Paypal is the earliest first generation of financial technology companies. The payment industry is closer to the technology industry, and it is much less constrained by financial regulation and capital. That's why tech companies are expanding into fintech through technology to improve the way payments are made. But because payments are not as profitable as borrowing, the second development is to erode the most profitable areas of traditional banks by borrowing money.
Because payment tools have become available, consumption has become easier, and the scene has been further abandoned, and telemarketing list cash loans have begun to explode. Like Paypal, which was originally a payment company, it is now possible to borrow money. Alipay is the same, pay first, then spend and borrow. Various financial institutions are cannibalizing each other's position. In the end, saving and investing are inseparable. Generally, users are attracted to open savings accounts by giving higher interest rates to users, continuously attracting traffic, and then providing services such as robo-advisors. This satisfies a market where small savings can also be used for large investments. Looking at the time line, I made payments around 2000, I made loans after the financial crisis, and now I make savings and investments.
Ways to make money Each of these four areas has its own way of making money, but the difference in profit margins is very large. The telemarketing list most profitable one is borrowing, lending money to others, and then others repay you with interest. This is the most essential demand of the capital market. Therefore, some emerging digital banks initially provided savings accounts for everyone and waived the fees. The purpose is to provide a free product like a technology company to acquire a large number of customers. But unlike technology companies that use advertising to realize cash, as a financial company, it realizes cash through borrowing, lending out the savings it absorbs, and then earning interest.