Fintech is often a mix of two words namely “Finance” and “Technology”. Completely, stage system Financial Technology. It is attributed to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways in which technologies are improving usage of finance, from making payments, currency, peer to see lending and in many cases wealth management.
The season 2008 was the dawn of the major evolutionary change in the financial technology industry. This was due to the collapse of the unsustainable banking system that took lots of risks in the hunt for profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue offers to save major traditional names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis showed the chance to do things differently. Previously financial technology was an in-house enterprise for your banks. The introduction of bank cards inside the 1950’s, ATM’s inside the 1960’s and electronic stock investing inside the 1970’s were all driven internally by major players inside the banking industry.
The failure inside the banking system gave rise to a large number of monetary technology upstarts. Modern companies which wished to see change and even more importantly 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 just a few locations individuals are seeing room for innovation and disruption to conventional methods.
This rapid growth has generated an excellent financial technology industry and several fintech startups online. Due to great number of companies which belong to the umbrella of fintech it is hard to put an exact figure on the international price of this industry. Thankfully KPMG make a quarterly report called ‘The Pulse of Fintech’. This provides a universal research latest investments inside the fintech industry. Their latest report claims that global acquisition of fintech companies reached a stunning $24.7 billion in 2016, spread across 1076 deals.
To learn more, check out this article on “what is fintech ?”
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