Fintech is a mixture of two words namely “Finance” and “Technology”. Entirely, it is called Financial Technology. It is often related to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways in which technology is improving use of finance, from paying, currency, peer to look lending and also wealth management.
The entire year 2008 was the dawn of an 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 their search for profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue intends to save major traditional names such as HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis exposed the ability to do things differently. Previously financial technology have been an in-house enterprise for your banks. The development of credit cards inside the 1950’s, ATM’s inside the 1960’s and electronic stock trading inside the 1970’s counseled me driven internally by major players inside the banking industry.
The failure inside the banking system gave rise with a large number of economic technology upstarts. Latest firms that planned to see change and most importantly remove traditional barriers that the banking system had built. This rise 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 just a few areas where everyone is seeing room for innovation and disruption to conventional methods.
This rapid growth has created an excellent financial technology industry and lots of latest fintech news online. Due to the large number of firms that are categorized as the umbrella of fintech it is hard to put a perfect figure on the global price of this industry. Thankfully KPMG make a sydney called ‘The Pulse of Fintech’. This gives a universal research into the latest investments inside the fintech industry. Their most recent report claims that global investment in fintech companies reached a whopping $24.7 billion in 2016, spread across 1076 deals.
For more information, see this article on “what is fintech ?”
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