Fintech can be a combination of two words namely “Finance” and “Technology”. Entirely, stage system Financial Technology. It is often caused by technology innovations in the financial industry. Put differently; it describes the convergence of finance and technology – or ways in which technologies are improving usage of finance, from making payments, currency, peer to peer lending as well as wealth management.
4 seasons 2008 was the dawn of a major evolutionary change in the financial technology industry. This became a result of the collapse associated with an unsustainable banking system that took too many risks rolling around in its hunt for profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue plans to save major high-street names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened up the ability to do things differently. Previously financial technology had been an in-house enterprise for your banks. The introduction of charge cards in the 1950’s, ATM’s in the 1960’s and electronic stock trading in the 1970’s were all driven internally by major players in the banking industry.
The failure in the banking system gave rise into a large number of financial technology upstarts. Innovative new companies that planned to see change and even more importantly remove traditional barriers 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 a few locations where everyone is seeing room for innovation and disruption to conventional methods.
This rapid growth has generated an excellent financial technology industry and a lot of fintech news india online. Due to the great number of companies that fall under the umbrella of fintech it is challenging to put a defined figure on the international price of this industry. Thankfully KPMG make a quarterly report called ‘The Pulse of Fintech’. This provides a universal research into the latest investments in the fintech industry. Their latest report claims that global purchase of fintech companies reached a whopping $24.7 billion in 2016, spread across 1076 deals.
For more info, check out this article on “what is fintech ?”
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