Precisely what is Fintech? – Definition and Meaning

Fintech is often a mixture of two words namely “Finance” and “Technology”. In full, stage system Financial Technology. It is often attributed to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or methods technologies are improving use of finance, from paying, currency, peer to see lending and in many cases wealth management.


4 seasons 2008 was the dawn of your major evolutionary difference in the financial technology industry. This became due to the collapse of your unsustainable banking system that took lots of risks in its pursuit of profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue promises to save major street names such as HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.

This crisis opened the chance to do things differently. Previously financial technology was an in-house enterprise to the banks. The development of bank cards inside the 1950’s, ATM’s inside the 1960’s and electronic 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 monetary technology upstarts. Latest companies which wanted 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 a huge spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are only a few locations everyone is seeing room for innovation and disruption to fliers and business cards.

This rapid growth has generated an excellent financial technology industry and lots of money and fintech news online. Due to the great number of companies which are categorized as the umbrella of fintech it can be difficult to put an exact you’ll need the international worth 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 states that global investment in fintech companies reached an impressive $24.7 billion in 2016, spread across 1076 deals.

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