Fintech can be a blend of two words namely “Finance” and “Technology”. Completely, it is called Financial Technology. It is often related to technology innovations in the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technologies are improving entry to finance, from paying, currency, peer to look lending as well as wealth management.
The year 2008 was the dawn of a major evolutionary change in the financial technology industry. This is attributable to the collapse of an unsustainable banking system that took a lot of risks in its hunt for profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue offers to save major high street names such as HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis showed the opportunity to do things differently. Previously financial technology ended up an in-house enterprise for that banks. The roll-out of credit cards in the 1950’s, ATM’s in the 1960’s and electronic trading and investing in the 1970’s counseled me driven internally by major players in the banking industry.
The failure in the banking system gave rise to some large number of economic technology upstarts. Latest businesses that wished 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 an enormous spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are only a few places that everyone is seeing room for innovation and disruption to fliers and other modes.
This rapid growth has established an excellent financial technology industry and many fintech industry analysis online. Due to the great number of businesses that fall under the umbrella of fintech it really is difficult to put an exact figure on the global value of this industry. Thankfully KPMG produce a sydney called ‘The Pulse of Fintech’. This provides an international investigation latest investments in the fintech industry. Their most recent report claims that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
For more information, check this out article on “what is fintech ?”
http://www.techbullion.com/what-is-fintech/