Fintech is a mix of two words namely “Finance” and “Technology”. In full, method . Financial Technology. It is usually attributed to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways technology is improving use of finance, from paying, currency, peer to look lending as well as wealth management.
The entire year 2008 was the dawn of a major evolutionary difference in the financial technology industry. This is a result of the collapse of an unsustainable banking system that took a lot of risks in their pursuit of 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 the banks. The creation of bank cards inside the 1950’s, ATM’s inside the 1960’s and electronic stock investing inside the 1970’s counseled me driven internally by major players inside the banking industry.
The failure inside the banking system gave rise to a large number of monetary technology upstarts. Modern companies that wanted to see change and 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 just a few areas where people are seeing room for innovation and disruption to traditional methods.
This rapid growth has built an excellent financial technology industry and a lot of fintech industry analysis online. Due to large number of companies that fall under the umbrella of fintech it really is hard to put a precise figure on the international valuation on this industry. Thankfully KPMG create a quarterly report called ‘The Pulse of Fintech’. This supplies a worldwide research into the latest investments inside the fintech industry. Their newest report states that global purchase 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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