Fintech can be a mixture of two words namely “Finance” and “Technology”. In full, stage system Financial Technology. It is usually caused by 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 see lending and also wealth management.
The season 2008 was the dawn of the major evolutionary alteration of the financial technology industry. It was due to the collapse of an unsustainable banking system that took a lot of risks rolling around in its quest for profits. Lehman Brothers were bankrupted, swiftly as well as emergency rescue offers to save major high-street names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis exposed the opportunity to do things differently. Previously financial technology ended up an in-house enterprise for the banks. The roll-out of 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 with a number of financial technology upstarts. New businesses that planned to see change and above all remove traditional barriers that this banking system had built. This boost 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 locations individuals are seeing room for innovation and disruption to fliers and business cards.
This rapid growth has generated an excellent financial technology industry and several fintech investors online. Due to plethora of businesses that fall under the umbrella of fintech it’s challenging to put an exact figure on the worldwide value of this industry. Thankfully KPMG develop a questionnaire called ‘The Pulse of Fintech’. This gives an international research into the latest investments inside the fintech industry. Their newest report states that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
For more info, check out this article on “what is fintech ?”
http://www.techbullion.com/what-is-fintech/