Fintech vs Techfin: Where Does the Future of Banking Lies?

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In the recent past, the financial sector worldwide has transformed greatly. There have been some most substantial and impactful paradigm shifts in the field- from traditional to digital banking and from fiat currency to digital currency. Fintech emerged as another remarkable development in the sector. And, now it’s not been so long, a new trend has entered the finance industry, called ‘Techfin’.

Although it closely resembles the concept of Fintech, the idea behind Techfin is a little different. With this current development, a new discussion has started “where the future of Banking and Finance lies between Fintech and Techfin?

Before jumping to the evaluation, let’s first understand the difference between Fintech and Techfin.

Fintech vs Techfin

Fintech is the concept where the finance sector uses technology to offer a better customer experience. On the other hand, when the technology field enters the finance industry to change ways through which users interact with the industry is Techfin.

You have some best-known examples in TechFin- Google, Amazon, Facebook and Apple (GAFA) in the U.S. and Baidu, Alibaba & Tencent (BAT) in China.

The Evolution of Finance and Technology

The rate of involvement of technology in the financial sector is steering huge transformation in the industry. Finance is not the same as before and will not remain the same in the future as it is now.

Now let’s explore the movement driven by finance and technology through each phase.

When there was no sign of technology in finance

The fintech or techfin evolution dates back to era when there was no sign of technology in finance. Customers had to wait in long queues at banks for transactions and other finance-related tasks.

Financial and non-banking institutions came together for the first time

Then started the phase wherein a few fragments in the banking sector arrived on mobile. Users who used to stand in queues got the option to make payments of bills, electricity, and water on through Mobile Apps Developed by non-banking institutions.

Technology companies stepped into the financial sector

Observing the ease offered to end-users by the digital revolution in the finance sector, many other banking institutions also entered the space with their duly designed apps.

In the meantime, some non-banking technology companies also stepped into the financial sector by infusing offerings like lending, credit facilities etc. At this point in time, the finance industry entered into a straight competition with technology firms to stand out as the best service provider. This phase in the fintech app development field is commonly known as online banking.

Full-fledged mobile banking – the future of financial technology

The combined finance and technology domain is moving to the fourth phase, where the competition will proceed to becoming more cut-throat. The forthcoming stage is all set to move to Techfin from Fintech.

Technology firms that entered the financial sector will solidify their presence, while the core financial institutions will start integrating technology into their operations on a high scale.


The future of banking and finance lies within the financial sector itself. The fact is, in near future, Techfin and Fintech companies will come together to become one, and their offerings will be on the same page, if not competitive. Even if these domains work individually, there will always be a room for them to fill and grow bigger.

No matter if mergers occur or not, one thing is assured – the financial sector is intended to change, and fintech transformation is certain to happen.


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