Fintech is a combination of two words namely “Finance” and “Technology”. Completely, stage system Financial Technology. It’s attributed to technology innovations in the financial industry. Put differently; it describes the convergence of finance and technology – or ways in which technologies are improving use of finance, from paying, currency, peer to peer lending and even wealth management.
4 seasons 2008 was the dawn of your major evolutionary alteration of the financial technology industry. This became a result of the collapse of your unsustainable banking system that took way too many risks rolling around in its pursuit of profits. Lehman Brothers were bankrupted, swiftly then emergency rescue promises to save major traditional names such as HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis exposed the opportunity do things differently. Previously financial technology had been an in-house enterprise for your banks. The creation of charge cards in the 1950’s, ATM’s in the 1960’s and electronic trading and investing in the 1970’s were all driven internally by major players in the banking industry.
The failure in the banking system gave rise with a number of monetary technology upstarts. Modern companies which planned to see change and above all remove traditional barriers the banking system had built. This boost 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 just a few places that individuals are seeing room for innovation and disruption to fliers and business cards.
This rapid growth has generated an excellent financial technology industry and a lot of fintech company news online. Due to large number of companies which belong to the umbrella of fintech it is difficult to put a defined figure on the international value of this industry. Thankfully KPMG make a sydney called ‘The Pulse of Fintech’. This provides an international research into the latest investments in the fintech industry. Their latest report states that global investment in fintech companies reached a whopping $24.7 billion in 2016, spread across 1076 deals.
For more information, check out this article on “what is fintech ?”
http://www.techbullion.com/what-is-fintech/