Fintech can be a mixture of two words namely “Finance” and “Technology”. Completely, method . Financial Technology. It is usually due to technology innovations from the financial industry. Put differently; it describes the convergence of finance and technology – or methods technology is improving usage of finance, from making payments, currency, peer to see lending as well as wealth management.
The season 2008 was the dawn of your major evolutionary alternation in the financial technology industry. This became brought on by the collapse of an unsustainable banking system that took too many risks in its pursuit of profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue offers to save major high street names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened up the ability to do things differently. Previously financial technology was an in-house enterprise for your banks. The creation of credit cards from the 1950’s, ATM’s from the 1960’s and electronic stock investing from the 1970’s counseled me driven internally by major players from the banking industry.
The failure from the banking system gave rise to a whole host of economic technology upstarts. Modern firms that planned to see change and most importantly remove traditional barriers the banking system had built. This surge in financial technology was quickly labelled as fintech.
Fintech covers a huge spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are just a few places that individuals are seeing room for innovation and disruption to conventional methods.
This rapid growth has established an excellent financial technology industry and lots of fintech company list online. Due to the large number of firms that are categorized as the umbrella of fintech it is tough to put an exact figure on the world worth of this industry. Thankfully KPMG produce a quarterly report called ‘The Pulse of Fintech’. This gives a worldwide research into the latest investments from the fintech industry. Their latest report states that global purchase of fintech companies reached an impressive $24.7 billion in 2016, spread across 1076 deals.
For more information, understand this article on “what is fintech ?”
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