Fintech is a mixture of two words namely “Finance” and “Technology”. In full, stage system Financial Technology. It’s caused by technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technologies are improving access to finance, from making payments, currency, peer to look lending and even wealth management.
The season 2008 was the dawn of the major evolutionary change in the financial technology industry. This became a result of the collapse associated with an unsustainable banking system that took too many risks rolling around in its hunt for profits. Lehman Brothers were bankrupted, swiftly then emergency rescue plans to save major high-street names including HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis showed the opportunity to do things differently. Previously financial technology ended up an in-house enterprise to the banks. The creation of charge 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 into a variety of economic technology upstarts. New 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 massive spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are only a few places that folks are seeing room for innovation and disruption to fliers and other modes.
This rapid growth has built an excellent financial technology industry and a lot of fintech companies to watch online. Due to large number of businesses that come under the umbrella of fintech it really is challenging to put an exact figure on the world worth of this industry. Thankfully KPMG develop a questionnaire called ‘The Pulse of Fintech’. This allows a worldwide research into the latest investments inside the fintech industry. Their most recent report claims that global purchase of fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
To find out more, understand this article on “what is fintech ?”
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