Fintech can be a combination of two words namely “Finance” and “Technology”. Entirely, method . Financial Technology. It is attributed to technology innovations within the financial industry. Put differently; it describes the convergence of finance and technology – or ways technologies are improving usage of finance, from paying, currency, peer to see lending and even wealth management.
The year 2008 was the dawn of an major evolutionary alternation in the financial technology industry. This is due to the collapse of an unsustainable banking system that took too many risks in their search for profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue intends to save major high street names including HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened up the chance to do things differently. Previously financial technology have been an in-house enterprise for your banks. The roll-out of cards within the 1950’s, ATM’s within the 1960’s and electronic trading within the 1970’s counseled me driven internally by major players within the banking industry.
The failure within the banking system gave rise with a large number of monetary technology upstarts. Modern firms that desired to see change and most importantly remove traditional barriers how 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 people are seeing room for innovation and disruption to fliers and business cards.
This rapid growth has generated an excellent financial technology industry and lots of financial technology news online. As a result of multitude of firms that belong to the umbrella of fintech it’s hard to put a perfect you’ll need the global worth of this industry. Thankfully KPMG make a modern australia called ‘The Pulse of Fintech’. This supplies an international investigation latest investments within the fintech industry. Their latest report claims that global investment in fintech companies reached a stunning $24.7 billion in 2016, spread across 1076 deals.
For more info, understand this article on “what is fintech ?”
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