Fintech is a mixture of two words namely “Finance” and “Technology”. Entirely, method . Financial Technology. It is usually related to technology innovations in the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technology is improving access to finance, from paying, currency, peer to see lending and even wealth management.
The year 2008 was the dawn of a major evolutionary change in the financial technology industry. This is brought on by the collapse associated with an unsustainable banking system that took lots of risks rolling around in its search for profits. Lehman Brothers were bankrupted, swiftly then emergency rescue plans to save major high street names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened the opportunity do things differently. Previously financial technology had been an in-house enterprise for the banks. The creation of bank cards in the 1950’s, ATM’s in the 1960’s and electronic stock trading in the 1970’s were all driven internally by major players in the banking industry.
The failure in the banking system gave rise to some variety of economic technology upstarts. Latest companies which 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 an enormous 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 business cards.
This rapid growth has created a booming financial technology industry and a lot of fintech industry analysis online. Due to the multitude of companies which are categorized as the umbrella of fintech it really is difficult to put an exact figure on the worldwide worth of this industry. Thankfully KPMG produce a modern australia called ‘The Pulse of Fintech’. This provides an international analysis of the latest investments in the fintech industry. Their most recent report claims that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
For more information, check this out article on “what is fintech ?”
http://www.techbullion.com/what-is-fintech/