What Is FinTech, What Do FinTech Companies Do, and What Are Some Examples?

What exactly does this buzzword mean? In this post on the Orptech Blog, we are diving deep into the world of FinTech to explore what these companies do and look at some of the most striking examples in the industry.

The rapid advancement of technology is fundamentally transforming our financial habits, just as it is every other aspect of our lives. Transactions that once required waiting in line at bank branches for hours can now be completed in seconds with a few taps on our smartphones. Right at the heart of this transformation is FinTech.

What Is FinTech?

FinTech is a portmanteau of the words "Financial" and "Technology." Simply put, it refers to the software, applications, and technologies designed to improve, automate, and accelerate the delivery and use of financial services.

Challenging the clunky and traditional structures of banking and finance, FinTech places the user experience front and center by leveraging innovative tools like artificial intelligence (AI), big data, blockchain, and cloud computing.

What Do FinTech Companies Do?

Unlike traditional financial institutions, FinTech companies typically focus on a specific problem or service area, making the process much cheaper, faster, and more accessible. Their main areas of operation include:

Payment Systems and Money Transfers: They break down the barriers of traditional wire transfers, enabling 24/7 domestic and international money transfers. Digital wallets are the most popular products in this category.
Open Banking: By allowing consumers to share their financial data with third-party applications (with their explicit consent), they make it possible to manage an entire budget from a single dashboard.
Lending: Using algorithms and AI, they instantly calculate credit scores and offer faster, more flexible micro-loan options than traditional banks (e.g., "Buy Now, Pay Later" models).
Wealth Management (WealthTech): Through robo-advisors, they empower even those with modest savings to invest professionally in complex stock markets or cryptocurrencies.
Insurance Technology (InsurTech): They generate personalized insurance policies in minutes and automate claims processing using AI.

Top FinTech Examples From Around the World and Turkey

The FinTech ecosystem is home to both global giants and local startups that are completely changing the game.

Global Examples

Stripe & PayPal: Global payment behemoths processing billions of dollars, providing online payment infrastructure for e-commerce sites and businesses.
Revolut: A leading "neobank" that offers currency exchange, crypto trading, stock investing, and international money transfers all in one app, with zero or incredibly low fees.
Klarna: The startup that revolutionized the retail industry, especially in Europe and the US, with its "Buy Now, Pay Later" (BNPL) model for e-commerce shoppers.

Examples From Turkey

Thanks to its young population and rapid digital adoption, Turkey is a highly robust market in the FinTech space:

Iyzico (A PayU Company): Turkey's premier payment infrastructure provider, enabling tens of thousands of e-commerce sites and marketplaces to securely accept credit card payments.
Midas: A next-generation brokerage firm that allows users to quickly and easily invest in US stock markets and Borsa Istanbul with very low commission rates.
Param: One of Turkey’s most established financial technology companies, offering electronic money accounts, prepaid cards, and payment collection solutions to both individual and corporate users.