The tech family: Fintech, Insurtech, Proptech, Regtech. What do they mean and why are they so popular?
The ‘Tech’ family grows exponentially. We constantly hear the terms Fintech, Insurtech, Propertech, Regtech, among others. Their popularity is not without good reason, as technology has permeated a large part of the industries, allowing the adoption of these terms to name the new activities, experiences and models that are being used in the business world.
You may want to know how these terms came about and why they became so popular. If so, here is a brief explanation.
Fintech: Finance + Technology
Probably one of the best known “–tech” neologisms is Fintech. This term is used to refer to projects that seek to transform financial and banking services by applying the disruption of new digital technologies. This term encompasses a broad range of solutions: methods of payment, data-based decision making, customer service through chatbots and hyper-personalized AI-powered services that can learn from customer patterns.
Insurtech: Insurance + Technology
According to Investopedia, Insurtech refers to the use of technological innovations that are designed to squeeze out savings from the current insurance industry model and increase efficiency. Insurtech also means the adoption of optimization processes by the insurance industry that are bringing their services to the next generation. This has increased during 2019.
The insurance industry has responded to every change in society over the centuries, adapting to every movement, revolution and technological advance.
Proptech: Property + Technology
Angelica Krystle Donati, Contributor at Forbes, says that Proptech is an acronym used to describe any technology for the real estate space. This can include software (property portals like Rightmove and Zoopla are considered to be Proptech software!), hardware (such as sensors), materials (there was a recent news item on how special bricks are being developed to act as batteries for solar panels) or manufacturing (3D printing, offsite manufacturing).
In fact, it stands for all the companies that are taking on the real estate industry and attempting to improve it by changing the digital landscape and new consumption patterns.
Regtech: Regulation + Technology
This is another new segment that is closely linked to the banking sector. It “includes any technology and/or software created to address regulatory challenges and help companies understand regulatory requirements and stay compliant”, according to CBInsights. This is achieved through the automation of manual processes and a thorough analysis of the information, which also allows consistent reports to be generated for regulators that can be used internally to improve business decision-making processes.
If you want to be part of the tech family, contact us so that we can find the best solution for your business.