What is fintech? Definition and examples

Fintech, short for financial technology, is changing how people manage their money. From online banking and mobile payments to budgeting apps and digital wallets, these tools are becoming a regular part of everyday life in Ireland. This guide takes a look at what fintech is, how it works, and some common examples you might already be using.

Disclaimer

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Fintech is short for “financial technology”. Put simply, it refers to the use of technology—be that a programme, software, or special algorithms—to provide any kind of financial service. Examples within the finance sector include online banking, mobile payment apps, and automated investment platforms. Fintech can ultimately be used to make money management faster, easier, and more accessible to larger groups of consumers.

Fintech has uses for both consumers and companies, but in different ways. For consumers, it might look like an online banking platform that enables them to access their accounts quickly and easily. But fintech isn’t always a product for end consumers. It is also the technology that makes it possible for financial firms to improve their services.

Artificial intelligence (AI) is a key driving force in many fintech products nowadays. As an example, virtual assistants that use AI technology are now commonly used by financial businesses in Ireland to provide answers to customers’ questions.

Used this way, fintech products can help companies to automate routine tasks that might have previously been expensive and time-consuming, and ultimately deliver faster services that better meet the needs of their customers.

No, fintech can be defined as the wider ecosystem that banking now operates within. It encompasses the use of technology in several different industries, including—but not limited to—banking. Fintech is often described as having a disruptive effect on traditional banking, almost forcing innovation by enabling faster, more user-friendly alternatives to long-standing systems.

Traditional banks offer financial services like current accounts, loans, or savings accounts, whereas fintech is the technology that is enabling fresh ways of delivering those services. At Raisin, we use various technologies to operate as an online savings platform, connecting users to a multitude of savings accounts through a single login. 

In simple terms, a bank might use fintech, but fintech itself forms the basis of a much wider range of products and services in the finance sector.

Using its general definition, fintech has existed for years. At one time, fintech meant banking services such as ATMs, credit cards, and the SWIFT network for international money transfers. These would all have been considered new financial technologies when they were introduced. It’s only since the internet and mobile usage have become more widespread that fintech has really taken off.

Nowadays, fintech means that banks, insurance firms, and financial institutions are constantly innovating to keep up with the digital world. And this is fuelling competition in the industry. More and more digital-first challenger banks are offering real alternatives to traditional high-street names.

Firms that use fintech can stand out from the competition by offering quicker setup processes or lower account fees. And with consumers becoming increasingly savvy, shopping around to find the best deals for them, fintech companies can meet that need by offering potentially better interest rates, conditions, or features than other providers might be able to.

It’s likely you have used some form of fintech product, maybe without realising. A good example is contactless payments. Now the preferred method of payment for many people in Ireland, this is where you simply tap your payment card at the checkout without having to enter your PIN each time. 

The following examples show how financial technologies are used in the spheres of banking, investing, and insurance.

• Open banking – This is where APIs are used to share your financial data securely (and with your permission) between banks and apps. An example is a budgeting app that connects with your account and analyses your spending habits.

• Online banking – Whereas previously you’d have had to head to a bank branch to open a current account, opening an account online and then logging in to manage it can be quicker and often more convenient.

• Digital wallets – Instead of carrying around your debit or credit card with you, a digital wallet has payment information from one or more cards stored securely in an app on your phone or smartwatch. When you go shopping, you can pay directly from that device.

• Mobile banking apps – Alongside the online-only banks, many of the major Irish banks now offer apps that allow their customers to check bank statements digitally, transfer funds from one account to another, or set up monthly standing orders.

• Challenger banks – The new challenger banks tend to offer a wider range of features than a traditional bank might. Their apps are appealing to younger users, while features like zero-fee currency exchanges solve a pain point for many consumers when sending money abroad.

• Peer-to-peer lending – This is a type of alternative investment where individuals or businesses looking for loans are connected directly with private investors willing to lend that money. Fintech provides the technology to make this possible, by way of online platforms.

• Cryptocurrencies – These are fintech products focused on digital currencies and blockchain technology. An increasingly popular option in Ireland is stablecoins, where their value is attached to a stable asset or a currency such as the euro.

• Digital pre-approval for loans and mortgages – Many brokers and banks offer ways of checking a loan’s affordability online. The whole process can be done digitally - from providing the necessary documents to checking the status of an application.

Fintech companies generally have robust cybersecurity measures and protocols, but that doesn’t stop them being open to cyber attacks from phishing, ransomware, and other threats. Data breaches that lead to hackers gaining access to customer data can be an issue for larger firms. There are strict regulations in place stipulating how sensitive data is to be handled, but the risk is always there.

Customers can help to protect themselves by taking precautionary measures when banking online, shopping online, or using any other digital service where they enter sensitive information.

Read how to spot a phishing email for one way to prevent your data ending up in the wrong hands.

On the provider side, fintech companies face the challenge of building customer trust. Because fintech products and services run on digital platforms, many consumers worry about whether their money is safe. Plus, regulations from within Ireland and the EU more generally can be costly and hard to keep up with.

Here are some of the benefits and downsides of fintech for consumers:

Ireland is home to a growing number of fintech companies. Raisin is part of this overall trend, having recently launched its 10th platform in Finland. In total, the savings marketplace has over 1 million savers across the EU, UK, and USA, holding more than €70 billion in deposits.

To illustrate the scale of the growth, investment in the Irish fintech industry nearly quadrupled in 2024, reaching over $237 million*. In Dublin, there are several RegTech (regulatory technology, which helps firms comply with financial regulations more efficiently) and InsurTech (insurance technology) companies.

Another major development that is likely to affect Ireland is the proposed digital euro. Although it isn’t yet in operation, this would provide people across Ireland and the eurozone as a whole with a secure, digital version of cash. While it won’t be replacing cash entirely, the idea is that payments will be more seamless, particularly for those who don’t regularly use credit cards or banking apps.

On the whole, Ireland is experiencing strong growth in fintech startups and innovation, partly thanks to the strong support it receives from government bodies and industry groups.

Raisin uses technology to make savings accounts more accessible. By registering, you can compare and open a range of competitive savings accounts from banks across Europe, all in one online marketplace. Apply to open and manage your accounts digitally, without having to fill out an application form each time. Register today for free to start making the most of your money.

*https://kpmg.com/ie/en/home/insights/2025/03/pulse-of-fintech-h2-24.html