Fintech is really a mix of two words namely “Finance” and “Technology”. Entirely, stage system Financial Technology. It’s caused by technology innovations from the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technology is improving use of finance, from making payments, currency, peer to see lending as well as wealth management.
The season 2008 was the dawn of the major evolutionary difference in the financial technology industry. This was a result of the collapse associated with an unsustainable banking system that took lots of risks in their pursuit of profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue intends 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 to do things differently. Previously financial technology had been an in-house enterprise for the banks. The introduction of credit cards from the 1950’s, ATM’s from the 1960’s and electronic trading and investing from the 1970’s counseled me driven internally by major players from the banking industry.
The failure from the banking system gave rise with a whole host of monetary technology upstarts. Modern companies which wished 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 everyone is seeing room for innovation and disruption to fliers and other modes.
This rapid growth has established an excellent financial technology industry and several fintech companies to watch online. Due to plethora of companies which come under the umbrella of fintech it’s difficult to put a precise figure on the international worth of this industry. Thankfully KPMG produce a quarterly report called ‘The Pulse of Fintech’. This supplies a worldwide research latest investments from the fintech industry. Their most current report claims that global purchase 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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