Fintech is often a mixture of two words namely “Finance” and “Technology”. Fully, stage system Financial Technology. It is usually due to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways technologies are improving access to finance, from making payments, currency, peer to see lending and even wealth management.
The entire year 2008 was the dawn of your major evolutionary alternation in the financial technology industry. This was attributable to the collapse of the unsustainable banking system that took too many risks in its hunt for profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue plans to save major street names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened the ability to do things differently. Previously financial technology have been an in-house enterprise for your banks. The introduction of charge 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 some large number of financial technology upstarts. Latest businesses that wanted to see change and above all remove traditional barriers that the banking system had built. This boost 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 just a few places that individuals are seeing room for innovation and disruption to traditional methods.
This rapid growth has established an excellent financial technology industry and lots of fintech industry analysis online. Due to the plethora of businesses that belong to the umbrella of fintech it’s tough to put a perfect figure on the global value of this industry. Thankfully KPMG produce a questionnaire called ‘The Pulse of Fintech’. This gives a global research into the latest investments inside the fintech industry. Their most current report claims that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
To find out more, see this article on “what is fintech ?”
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