What is Fintech? – Definition and Meaning

Fintech is a mixture of two words namely “Finance” and “Technology”. Fully, it is called Financial Technology. It is usually related to technology innovations from the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technologies are improving use of finance, from making payments, currency, peer to look lending and in many cases wealth management.


The season 2008 was the dawn of your major evolutionary alternation in the financial technology industry. This is a result of the collapse of your unsustainable banking system that took way too many risks in their search for profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue intends to save major street names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.

This crisis showed the ability to do things differently. Previously financial technology ended up an in-house enterprise for that banks. The creation of bank cards from the 1950’s, ATM’s from the 1960’s and electronic stock investing from the 1970’s were all driven internally by major players from the banking industry.

The failure from the banking system gave rise to a number of monetary technology upstarts. New firms that desired to see change and even more importantly remove traditional barriers that the banking system had built. This boost in financial technology was quickly labelled as fintech.

Fintech covers a vast spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are only a few locations where individuals are seeing room for innovation and disruption to traditional methods.

This rapid growth has established an excellent financial technology industry and a lot of regtech news online. Due to the great number of firms that are categorized as the umbrella of fintech it’s tough to put a perfect you’ll need the international price of this industry. Thankfully KPMG create a quarterly report called ‘The Pulse of Fintech’. This supplies a worldwide research latest investments from the fintech industry. Their latest report claims that global investment in fintech companies reached a whopping $24.7 billion in 2016, spread across 1076 deals.

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