Paying by phone, viewing several accounts in one application and arranging an investment portfolio online are different uses of financial technology. They share a digital experience, but may involve different providers, contracts and protections.
This guide began as an introduction to fintech in 2023. The revision keeps that subject while replacing the original predictions with practical ways to understand a particular service.
Fintech describes how services are delivered
The word combines finance and technology. It covers areas such as payments, financing and investment management, as the CNMV’s guide explains. Innovation can come from an established bank or a new company. The label alone does not tell you which activities a provider is allowed to carry out.
Four services to distinguish
- Payments and digital wallets: these facilitate transactions or the use of payment methods. Identify the underlying account or card and who handles problems.
- Accounts and digital banking: check which entity holds the balance, beyond the application’s brand name.
- Automated investment: distinguish information, advice and portfolio management. An algorithm does not remove the risks of the chosen assets.
- Crowdfunding: establish whether you are donating, buying a reward, lending money or investing in a business. These are different commitments.
A brand name is not a licence
The Banco de España distinguishes credit institutions from payment and electronic money institutions. The latter use different safeguarding arrangements and do not belong to a deposit guarantee scheme. A bank-like interface does not establish that its balance is a protected bank deposit.
Find the legal entity in the contract and compare it with the appropriate official register. Where several group companies are involved, identify the provider of each service. Keep those details with the version of the terms you accept.
Compare real use, not just the monthly fee
Choose a realistic example: receiving income, paying in another currency and withdrawing money. Write down the cost of the same activities under each offer. Include free allowances, currency conversion, additional transactions and cancellation. A headline price is not useful if it does not cover what you need.
Then check practical details: how to download statements, regain access after losing your phone and contact customer support. You do not need to open an account to read the documentation already available.
When the application also offers investments
The CNMV explains investment advice as a service distinct from simply executing an order. Establish what you are buying and who makes decisions. Ease of use and suitability of an investment are separate questions.
Common questions
Is every fintech company a bank?
No. Check the entity and its authorised activities.
Does digital always mean cheaper?
No. Compare the total cost of your typical activities and the conditions for leaving.
If an application offers digital assets, our DeFi guide explains some additional dependencies.
Sources checked on 22 September 2026. General information for comparing services, without personalised financial advice.
