Fintech is a mix of two words namely “Finance” and “Technology”. Fully, method . Financial Technology. It’s caused by technology innovations from the financial industry. Put differently; it describes the convergence of finance and technology – or methods technologies are improving usage of finance, from paying, currency, peer to see lending and in many cases wealth management.
The year 2008 was the dawn of your major evolutionary change in the financial technology industry. It was attributable to the collapse of the unsustainable banking system that took way too many risks in the pursuit of profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue offers to save major traditional names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis showed the chance to do things differently. Previously financial technology have been an in-house enterprise for the banks. The creation of credit cards from the 1950’s, ATM’s from the 1960’s and electronic stock investing from the 1970’s were all driven internally by major players from the banking industry.
The failure from the banking system gave rise into a large number of economic technology upstarts. Latest companies that desired to see change and even more importantly remove traditional barriers that this banking system had built. This rise 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 just a few areas where folks are seeing room for innovation and disruption to conventional methods.
This rapid growth has created an excellent financial technology industry and many fintech jobs online. As a result of plethora of companies that fall under the umbrella of fintech it really is challenging to put a defined figure on the global price of this industry. Thankfully KPMG create a questionnaire called ‘The Pulse of Fintech’. This gives an international analysis of the latest investments from the fintech industry. Their newest report states that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
For more info, understand this article on “what is fintech ?”
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