Fintech is often a blend of two words namely “Finance” and “Technology”. In full, stage system Financial Technology. It is often due to technology innovations in the financial industry. Put differently; it describes the convergence of finance and technology – or methods technology is improving use of finance, from paying, currency, peer to see lending and even wealth management.
The year 2008 was the dawn of the major evolutionary change in the financial technology industry. This is brought on by the collapse of your unsustainable banking system that took too many risks in the hunt for profits. Lehman Brothers were bankrupted, swiftly as well as emergency rescue promises to save major high street names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened the opportunity do things differently. Previously financial technology ended up an in-house enterprise for that banks. The development of credit cards in the 1950’s, ATM’s in the 1960’s and electronic trading 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 whole host of financial technology upstarts. New companies which desired to see change and most importantly remove traditional barriers that this 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 just a few locations folks are seeing room for innovation and disruption to fliers and other modes.
This rapid growth has created a booming financial technology industry and lots of latest fintech news online. Due to the large number of companies which are categorized as the umbrella of fintech it is hard to put an exact figure on the world valuation on this industry. Thankfully KPMG make a modern australia called ‘The Pulse of Fintech’. This gives a worldwide research latest investments in the fintech industry. Their most current report claims that global investment in fintech companies reached a stunning $24.7 billion in 2016, spread across 1076 deals.
For more information, see this article on “what is fintech ?”
http://www.techbullion.com/what-is-fintech/