What is Fintech? – Definition and Meaning

Fintech is a mix of two words namely “Finance” and “Technology”. Entirely, stage system Financial Technology. It’s related to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or methods technology is improving use of finance, from making payments, currency, peer to see lending and even wealth management.


The entire year 2008 was the dawn of the major evolutionary alteration of the financial technology industry. This is due to the collapse of an unsustainable banking system that took lots of risks in the search for profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue plans to save major high-street names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.

This crisis opened the ability to do things differently. Previously financial technology was an in-house enterprise for the banks. The development of cards inside the 1950’s, ATM’s inside the 1960’s and electronic trading inside the 1970’s were all driven internally by major players inside the banking industry.

The failure inside the banking system gave rise into a variety of economic technology upstarts. Latest companies which wished to see change and above all remove traditional barriers the banking system had built. This rise 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 simply a few places that folks are seeing room for innovation and disruption to fliers and business cards.

This rapid growth has created a booming financial technology industry and lots of fintech company profile online. As a result of great number of companies which are categorized as the umbrella of fintech it can be challenging to put an exact you’ll need the global value of this industry. Thankfully KPMG produce a quarterly report called ‘The Pulse of Fintech’. This allows a universal investigation latest investments inside the fintech industry. Their latest report states that global investment in fintech companies reached an impressive $24.7 billion in 2016, spread across 1076 deals.

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