Fintech is a blend of two words namely “Finance” and “Technology”. Entirely, stage system Financial Technology. It is often caused by technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technology is improving access to finance, from paying, currency, peer to peer lending and in many cases wealth management.
The season 2008 was the dawn of an major evolutionary alternation in the financial technology industry. This is brought on by the collapse of the unsustainable banking system that took too many risks in its quest for profits. Lehman Brothers were bankrupted, swiftly then emergency rescue promises to save major high-street names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened up the opportunity do things differently. Previously financial technology had been an in-house enterprise for your banks. The introduction of bank cards inside the 1950’s, ATM’s inside the 1960’s and electronic stock trading 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 variety of financial technology upstarts. Latest businesses that desired to see change and above all remove traditional barriers that this banking system had built. This surge 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 only a few locations where folks are seeing room for innovation and disruption to fliers and business cards.
This rapid growth has created a booming financial technology industry and many fintech industry analysis online. As a result of multitude of businesses that are categorized as the umbrella of fintech it can be hard to put a perfect figure on the world worth of this industry. Thankfully KPMG develop a questionnaire called ‘The Pulse of Fintech’. This supplies an international investigation latest investments inside the fintech industry. Their most recent report claims that global acquisition of fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
For more information, check out this article on “what is fintech ?”
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