Fintech – a new financial services niche in Malta
Fintech is the buzz word on everyone’s lips the world over, not least in Malta. The industry of Fitech penetrated the financial services sector in Malta in 2015 and continued to be successful, so much so that the regulators felt that specific legislation should be enacted to regulate this new industry in the financial services sector. Today, the use of technology to deliver and advance financial services is leaving a significant impact on the sector.
But what is Fintech? Fintech, or financial technology, refers to those technology istart-ups that are revolutionalising the financial services sector by providing efficient solutions over the internet. These are in direct competition with banks and insurance companies as they are offering services such as solutions to money transfers, loans through crowdfunding platforms, virtual exchange operators and online wealth management services.
Fintech covers a variety of businesses. A typical Fintech company is one that focuses on a particular service within the financial services industry and matches this service to information technology to strengthen the way the service is provided. This results in better connectivity and accessibility to online information through a communication gadget that is nowadays indispensable.
Malta has gained a good reputation as an important European centre of financial services for funds and fund managers. This has led to our country becoming a European centre for the services offered by Fintech. Malta offers the ideal environment for such start-ups and companies that are looking to transfer their business to Fintech and this gives it potential as a Fintech niche.