{"id":39446,"date":"2020-10-30T14:19:45","date_gmt":"2020-10-30T08:49:45","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=39446"},"modified":"2022-01-03T17:46:32","modified_gmt":"2022-01-03T12:16:32","slug":"fintech-and-nbfc-key-differences","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/fintech-and-nbfc-key-differences\/","title":{"rendered":"Fintech and NBFC: Key differences"},"content":{"rendered":"

If we reside in urban areas there a good chances that we come around various loan options such as banks, Non-Banking Financing companies (NBFC<\/a>), or Fintech start-ups. However, each of them provides loans but still has a unique place in the financial ecosystem. It can sometimes become a hard choice to determine what option to choose when we have a requirement for the money.<\/p>\n\n\n\n

In this blog, we will be explaining the main difference between these finance options and how to opt for the one medium that fits your requirement.<\/p>\n\n\n\n

Fintech and NBFC: Meaning<\/h2>\n\n\n\n

To understand the difference, it important to understand their meanings first:<\/em><\/strong><\/p>\n\n\n\n

Fintech<\/h3>\n\n\n\n

Financial technology (Fintech) is used to explain new tech that seeks to automate and improve the use of financial services and delivery. ​​​Within this definition, Fintech companies usually operate to facilitate company owners, consumers, and corporations to better handle their functions of financials, processes, and lives by utilizing dedicated software and the process of algorithms. This can be carried out by Smartphone users and computer applications. The term Fintech is a grouping of “financial technology<\/strong>[1]<\/strong><\/a><\/sup>“.<\/p>\n\n\n\n

Fintech also comprises the expansion and use of crypto-currencies including bit coins. That one section of fintech may see the most headlines; a huge amount of money still lies in the traditional global banking industry and its multi trillion dollars as market<\/a> capitalization.<\/p>\n\n\n\n

Non Banking Financial Companies (NBFC)<\/h3>\n\n\n\n

Non banking financial companies (NBFC)<\/strong><\/a>, also known by the name of non bank financial institutions (NBFIs) are a financial establishment that proposes various banking services but does not have a banking permit. Majorly, this establishment is not authorized to take traditional demand deposits or any readily available funds, such as those in saving or checking accounts—from the public. This restriction keeps them outside the extent of predictable oversight from union and state financial regulators.<\/p>\n\n\n\n

Loans via Fintech and NBFC<\/h2>\n\n\n\n