Fintech can be a mixture of two words namely “Finance” and “Technology”. Completely, method . Financial Technology. It is 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 as well as wealth management.
The year 2008 was the dawn of your major evolutionary difference in the financial technology industry. It was brought on by the collapse associated with an unsustainable banking system that took a lot of risks in its quest for profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue plans to save major street names such as HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened the opportunity do things differently. Previously financial technology was an in-house enterprise for the banks. The roll-out of charge cards inside the 1950’s, ATM’s inside the 1960’s and electronic trading and investing inside the 1970’s counseled me driven internally by major players inside the banking industry.
The failure inside the banking system gave rise into a large number of monetary technology upstarts. Latest firms that wanted to see change and even more importantly remove traditional barriers that this 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 simply a few locations folks are seeing room for innovation and disruption to fliers and business cards.
This rapid growth has built a booming financial technology industry and lots of fintech magazines online. Due to the great number of firms that come under the umbrella of fintech it is difficult to put an exact figure on the global valuation on this industry. Thankfully KPMG develop a questionnaire called ‘The Pulse of Fintech’. This supplies a worldwide research latest investments inside the fintech industry. Their newest report states that global acquisition of fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
For more info, check out this article on “what is fintech ?”
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