Fintech is a mix of two words namely “Finance” and “Technology”. In full, stage system Financial Technology. It is related to technology innovations inside 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 peer lending as well as wealth management.
The entire year 2008 was the dawn of your major evolutionary difference in the financial technology industry. This became attributable to the collapse of the unsustainable banking system that took a lot of risks in their search for profits. Lehman Brothers were bankrupted, swiftly as well as emergency rescue offers to save major high street names such as HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened up the ability to do things differently. Previously financial technology ended up an in-house enterprise for the banks. The introduction of credit cards inside the 1950’s, ATM’s inside the 1960’s and electronic trading inside the 1970’s were all driven internally by major players inside the banking industry.
The failure inside the banking system gave rise into a whole host of financial technology upstarts. Modern companies which wished to see change and even more importantly remove traditional barriers the banking system had built. This increase 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 places that individuals are seeing room for innovation and disruption to fliers and other modes.
This rapid growth has established a booming financial technology industry and many fintech news 2017 online. Due to great number of companies which fall under the umbrella of fintech it’s challenging to put a defined figure on the world price of this industry. Thankfully KPMG develop a quarterly report called ‘The Pulse of Fintech’. This provides a global research latest investments inside the fintech industry. Their most recent report states that global acquisition of fintech companies reached an impressive $24.7 billion in 2016, spread across 1076 deals.
For more information, see this article on “what is fintech ?”
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