Fintech can be a combination of two words namely “Finance” and “Technology”. Fully, it is called Financial Technology. It is usually attributed to technology innovations in the financial industry. Put differently; it describes the convergence of finance and technology – or ways technology is improving access to finance, from paying, currency, peer to see lending and in many cases 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 your unsustainable banking system that took too many risks in their hunt for profits. Lehman Brothers were bankrupted, swiftly as well as emergency rescue intends to save major high street names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis exposed the opportunity do things differently. Previously financial technology ended up an in-house enterprise for the banks. The introduction of credit cards in the 1950’s, ATM’s in the 1960’s and electronic trading and investing in the 1970’s counseled me driven internally by major players in the banking industry.
The failure in the banking system gave rise to a number of financial technology upstarts. New businesses that planned to see change and even more importantly remove traditional barriers that this banking system had built. This increase in financial technology was quickly labelled as fintech.
Fintech covers a vast spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are a few areas where everyone is seeing room for innovation and disruption to traditional methods.
This rapid growth has created an excellent financial technology industry and many fintech magazines online. Because of the plethora of businesses that come under the umbrella of fintech it can be challenging to put a precise figure on the international price of this industry. Thankfully KPMG make a quarterly report called ‘The Pulse of Fintech’. This supplies a worldwide research into the latest investments in the fintech industry. Their latest report claims that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
To learn more, check this out article on “what is fintech ?”
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