Fintech is really a combination of two words namely “Finance” and “Technology”. In full, it is called Financial Technology. It is often related to technology innovations in the financial industry. Put differently; it describes the convergence of finance and technology – or methods technology is improving usage of finance, from making payments, currency, peer to look lending and also wealth management.
The season 2008 was the dawn of an major evolutionary alteration of the financial technology industry. This became due to the collapse of an unsustainable banking system that took lots of risks in their search for profits. Lehman Brothers were bankrupted, swiftly as well as emergency rescue offers to save major high-street names including HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened up the opportunity to do things differently. Previously financial technology ended up an in-house enterprise to the banks. The creation of bank cards in the 1950’s, ATM’s in the 1960’s and electronic trading in the 1970’s counseled me driven internally by major players in the banking industry.
The failure in the banking system gave rise with a large number of financial technology upstarts. Modern businesses that wished to see change and more importantly remove traditional barriers that the banking system had built. This increase in financial technology was quickly labelled as fintech.
Fintech covers a huge spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are just a few areas where folks are seeing room for innovation and disruption to conventional methods.
This rapid growth has created a booming financial technology industry and many money and fintech news online. As a result of great number of businesses that belong to the umbrella of fintech it is difficult to put a perfect you’ll need the global valuation on this industry. Thankfully KPMG create a modern australia called ‘The Pulse of Fintech’. This supplies a global analysis of the latest investments in the fintech industry. Their most current report states that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
For more info, understand this article on “what is fintech ?”
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