Fintech is often a combination of two words namely “Finance” and “Technology”. In full, stage system Financial Technology. It is often related to technology innovations from the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technologies are improving access to finance, from paying, currency, peer to look lending and in many cases wealth management.
The entire year 2008 was the dawn of a major evolutionary alternation in the financial technology industry. This was brought on by the collapse associated with an unsustainable banking system that took lots of risks in its quest for profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue offers to save major high street names such as HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened the opportunity do things differently. Previously financial technology was an in-house enterprise to the banks. The introduction of cards from the 1950’s, ATM’s from the 1960’s and electronic stock trading from the 1970’s were all driven internally by major players from the banking industry.
The failure from the banking system gave rise with a variety of financial technology upstarts. Modern businesses that wished to see change and above all 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 simply a few locations individuals are seeing room for innovation and disruption to conventional methods.
This rapid growth has generated a booming financial technology industry and many fintech industry analysis online. Due to the great number of businesses that are categorized as the umbrella of fintech it is challenging to put a defined figure on the worldwide price of this industry. Thankfully KPMG develop a quarterly report called ‘The Pulse of Fintech’. This supplies a universal investigation latest investments from the fintech industry. Their newest report claims that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
To learn more, check out this article on “what is fintech ?”
http://www.techbullion.com/what-is-fintech/