Fintech is a mix of two words namely “Finance” and “Technology”. Completely, it is called Financial Technology. It is usually 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 peer lending and also wealth management.
4 seasons 2008 was the dawn of the major evolutionary difference in the financial technology industry. This became a result of the collapse of an unsustainable banking system that took a lot of risks in its search for profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue intends to save major traditional names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened up the chance to do things differently. Previously financial technology ended up an in-house enterprise for your banks. The creation of credit 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 to some number of monetary technology upstarts. Innovative new businesses that planned to see change and even more importantly remove traditional barriers how the banking system had built. This surge 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 only a few locations where folks are seeing room for innovation and disruption to traditional methods.
This rapid growth has created a booming financial technology industry and a lot of fintech finance online. Due to the multitude of businesses that are categorized as the umbrella of fintech it really is tough to put a perfect you’ll need the worldwide valuation on this industry. Thankfully KPMG create a quarterly report called ‘The Pulse of Fintech’. This allows a global research latest investments inside the fintech industry. Their most current report states that global investment in 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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