Fintech is often a mix of two words namely “Finance” and “Technology”. Entirely, method . Financial Technology. It is usually related to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways technologies are improving access to finance, from making payments, currency, peer to peer lending as well as wealth management.
The season 2008 was the dawn of the major evolutionary difference in the financial technology industry. This became a result of the collapse of the unsustainable banking system that took lots of risks in the search for profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue promises to save major high street names such as HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis showed the chance to do things differently. Previously financial technology ended up an in-house enterprise for the banks. The creation of cards inside the 1950’s, ATM’s inside the 1960’s and electronic stock investing inside the 1970’s counseled me 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. Innovative new companies that desired to see change and even more importantly remove traditional barriers that the banking system had built. This boost in financial technology was quickly labelled as fintech.
Fintech covers an enormous spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are only a few places that everyone is seeing room for innovation and disruption to traditional methods.
This rapid growth has created an excellent financial technology industry and a lot of fintech startups online. Due to large number of companies that fall under the umbrella of fintech it’s challenging to put an exact figure on the world worth of this industry. Thankfully KPMG produce a modern australia called ‘The Pulse of Fintech’. This supplies a worldwide research into the latest investments inside the fintech industry. Their most current report states that global acquisition of fintech companies reached an impressive $24.7 billion in 2016, spread across 1076 deals.
To find out more, check out this article on “what is fintech ?”
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