Fintech is often a mixture of two words namely “Finance” and “Technology”. In full, it is called Financial Technology. It is often due to technology innovations in the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technology is improving use of finance, from paying, currency, peer to see lending and even wealth management.
The entire year 2008 was the dawn of your major evolutionary change in the financial technology industry. It was brought on by the collapse of the unsustainable banking system that took too many risks in its pursuit of profits. Lehman Brothers were bankrupted, swiftly as well as emergency rescue intends to save major high-street names including 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 your banks. The roll-out of credit cards in the 1950’s, ATM’s in the 1960’s and electronic trading and investing 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 financial technology upstarts. New companies which planned to see change and even more importantly remove traditional barriers that this banking system had built. This boost 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 created a booming financial technology industry and lots of Fintech online. Due to great number of companies which fall under the umbrella of fintech it’s hard to put a defined figure on the worldwide valuation on this industry. Thankfully KPMG develop a modern australia called ‘The Pulse of Fintech’. This provides a worldwide investigation latest investments in the fintech industry. Their most recent report states that global purchase of fintech companies reached a stunning $24.7 billion in 2016, spread across 1076 deals.
For more info, check this out article on “what is fintech ?”
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