Fintech is really a combination of two words namely “Finance” and “Technology”. Fully, method . Financial Technology. It is caused by technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways technologies are improving use of finance, from making payments, currency, peer to peer lending and in many cases wealth management.
4 seasons 2008 was the dawn of the major evolutionary change in the financial technology industry. This was a result of the collapse of the unsustainable banking system that took way too many risks in its search for profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue intends to save major street names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened up the opportunity to do things differently. Previously financial technology ended up an in-house enterprise for that banks. The development of credit cards inside the 1950’s, ATM’s inside the 1960’s and electronic trading and investing inside the 1970’s were all driven internally by major players inside the banking industry.
The failure inside the banking system gave rise to a large number of financial technology upstarts. Modern companies which wished to see change and more importantly remove traditional barriers that this banking system had built. This rise 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 simply a few locations folks are seeing room for innovation and disruption to fliers and other modes.
This rapid growth has generated an excellent financial technology industry and a lot of Fintech online. As a result of large number of companies which come under the umbrella of fintech it really is hard to put an exact you’ll need the world worth of this industry. Thankfully KPMG produce a quarterly report called ‘The Pulse of Fintech’. This supplies a global research into the latest investments inside the fintech industry. Their most current report claims that global acquisition of 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 ?”
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