What’s up everybody it’s Justin Live from B2B Vault, the payment technology podcast with your host, Allen Kopelman. And we’ll be providing you with educational information about business payments, FinTech, decentralized finance, and the technology businesses use in today’s world. And in today’s podcast, we’ll be talking about FinTech or financial technology, and what that is. And yeah! So, what is FinTech? It’s one of those buzzwords that has been going around for the past two, or three years. It’s been going around for a long time, but like FinTech itself. I would say in the past five years have just exploded onto the scene with like, everybody wants to be a FinTech company! somehow!
Like every digital marketing agency, every software company, all of it, is somehow they’re integrating financial technology into their business model. And I’m all for it, it’s cool! There’s been a lot of advancements, in the past couple of years when it comes to just tech in general, right? Yeah! Yeah! man. So, what the hell is FinTech? Yeah, so I wanted to give a simple explanation. What is financial technology combining software and payments or the movement of money! So that’s basically, FinTech. And every, lots and lots of software companies are always trying to figure out how to monetize their software.
And that’s how they’re going to, that’s how they’re monetizing their software through subscription memberships, integrating payments into the software. So, let’s say I sell software and Justin becomes a customer of my software. He uses the software and then he needs to have a payment account associated with that. FinTech company can work with a company like us. And then we get that all set up for them to enable all that to happen. And then that FinTech company makes a piece of the revenue. Got it! So that’s one version of FinTech, other versions where we’re seeing FinTech is where banks, there’s like all these banks, we talked about the Neo bank before! Right?
What’s a Neo bank? The Neo banks are the banks with no branches. Some of the big ones are Evolve and then underneath Evolve are many, they sponsor many of the Neo banks. So, they’re the real bank PayPal, right? Yeah! PayPal they’re trying to become a bank. No, I’m saying, but right now they’re considered a Neo bank, right? Not really! They are more of a FinTech, but they’re trying to offer banking services because you can keep your money on your PayPal account. And not use it almost as a bank account, but you’ve always been able to do that. So, I’m just saying there’s a bank, but it’s not FDIC insured!