Responding to new uses and new needs, fintechs offer services, traditionally offered by traditional or innovative banks, often at reduced cost. They can target certain customer segments only, such as young people.
The different categories of fintechs
Alongside their equivalents in the insurance sector (assurtechs) or financial regulation (regtechs), fintechs are generally start -ups that deliver financial services using new technologies (Internet, smartphone, blockchain, etc.) in a sometimes disruptive approach (new services, new customer experience, etc.) and almost always at reduced cost.
Most of these fintechs offer a basic offer that is free or almost free and additional paid “premium” services (so-called “freemium” economic model).
Given the proliferation of these initiatives, it is impossible to be exhaustive on the contributions of these fintechs Here are some examples:
neo -banks (such as N26, Revolut, Orange Bank, MyFrenchBank, Boursorama, etc.), some of which specialize in businesses, notably VSEs/SMEs (such as Qonto, Shine, etc.);
specialists in blockchain- based cryptocurrencies such as bitcoin or ethereum (like Coinbase, BitPanda, Kraken, etc.);
account aggregators like Linxo, Bankin, etc
other payment service providers (PSP), offering daily banking services around payments.
The daily banking services of fintechs, around payments
Apart from neo-banks which can offer the entire traditional range of banks, these other fintechs are not credit institutions but have received from the Prudential Control and Resolution Authority (ACPR) or its European equivalents (community passport) an authorization for a payment or electronic money institution or payment service provider agent. Among those operating in France in 2021: Max, Pixpay, Xaalys, Anytime, Morning, Lydia, Moneway, Kard, Lemonway…
Their offer is based around a website and/or a smartphone application with a free account associated with a bank card and reduced fees for payments, particularly abroad.
The example of services offered to young people by fintechs
Banking services intended for minors traditionally revolve around a youth savings account and a withdrawal and sometimes payment card , sometimes also prepaid, with ceilings limiting spending. And more and more the possibility of paying online with your smartphone (cash pot, purchase or subscription, etc.).
Many fintechs (which are not banks or even credit institutions but payment institutions) have initiated new services for this target customer, which neo-banks or even traditional banks themselves only very much integrate. gradually in their offers.
The system offered by fintechs
Each fintech has defined processes and services that it hopes will differentiate itself (such as integrated access to a pot, systematic notification of operations, alerts, account management advice, etc.). The offer often includes a basic version that is free or almost free and a “premium” version whose prices are on average €3 per month in 2021, but most are based on the following characteristics:
the teenager’s parents (or guardians) open an account
the young person has a payment and withdrawal card (Mastercard or Visa) and above all a mobile application , he can spend the money within the limit of amounts predefined by his parents (generally without overdraft possible – systematic check of the balance ),
real-time monitoring , via a dedicated application , of expenses incurred and/or notification of each expense, possibility of blocking the card.