Fintech is a mix of two words namely “Finance” and “Technology”. Fully, it is called Financial Technology. It is attributed to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or ways in which technologies are improving use of finance, from paying, currency, peer to look lending and also wealth management.
The year 2008 was the dawn of a major evolutionary alteration of the financial technology industry. This was attributable to the collapse associated with an unsustainable banking system that took a lot of risks rolling around in its hunt for profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue offers to save major high-street names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.
This crisis opened the ability to do things differently. Previously financial technology have been an in-house enterprise for the banks. The introduction of cards inside the 1950’s, ATM’s inside the 1960’s and electronic trading inside the 1970’s were all driven internally by major players inside the banking industry.
The failure inside the banking system gave rise into a number of monetary technology upstarts. Modern companies which planned to see change and more importantly remove traditional barriers 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 a few places that people are seeing room for innovation and disruption to traditional methods.
This rapid growth has built a booming financial technology industry and several fintech industry analysis online. Because of the large number of companies which belong to the umbrella of fintech it’s difficult to put a precise you’ll need the global price of this industry. Thankfully KPMG make a questionnaire called ‘The Pulse of Fintech’. This gives a global research into the latest investments inside the fintech industry. Their latest report states that global acquisition of fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.
To learn more, understand this article on “what is fintech ?”
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