After our first and second post about Business Models and categories of Fintech companies, we will now discuss about some models that are not that common or that concentrate on niche markets.
These Fintech models are not common because the demand for their services is still not clear, or because the niche is temporary (like the gold rush some years ago), or because they focus on specific regions and countries and their needs.
The following models can be found:
– Money lending, not to consumers, but to big companies. To help with cash flow issues, finance and tight budgets.
– Fintech White label services. The categories we have mentioned in previous posts: money lending, founding, cash transfers; but as a white label.
-Banking services. Very specific and
niche: communication between banks, payments from bank to bank, currency conversion, etc.
– Safety in Mobile banking and payments. Services that make sure that the companies offering money transfers, payments, currency exchange, etc, etc, carry out these transactions in a secure environment.
– Savings. Some Fintech companies offer users the possibility of getting better conditions and interests for their money. The need for regulation and security of the money, makes it (so far), available for specific regions and countries.
– Wealth management. As in the previous category, as there needs to be a regulation in place, this kind of business model seems to be less common. It is becoming more and more popular in the United States, however.
The categories and business models will probably grow in number, or will become more specialized. We do not intend to cover all what exists right now, but give a quick glimpse on the current situation of Fintech.