What exactly is Fintech? – Definition and Meaning

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Fintech is often a mixture of two words namely “Finance” and “Technology”. Entirely, method . Financial Technology. It is related to technology innovations from the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technologies are improving access to finance, from making payments, currency, peer to look lending as well as wealth management.


The year 2008 was the dawn of an major evolutionary alternation in the financial technology industry. It was attributable to the collapse associated with an unsustainable banking system that took a lot of risks in its pursuit of profits. Lehman Brothers were bankrupted, swiftly followed by emergency rescue plans to save major street names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.

This crisis showed the opportunity to do things differently. Previously financial technology was an in-house enterprise for the banks. The roll-out of bank cards from the 1950’s, ATM’s from the 1960’s and electronic stock trading from the 1970’s were all driven internally by major players from the banking industry.

The failure from the banking system gave rise into a variety of financial technology upstarts. Innovative new businesses that wanted to see change and even more importantly remove traditional barriers the 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 simply a few areas where everyone is seeing room for innovation and disruption to fliers and other modes.

This rapid growth has created an excellent financial technology industry and a lot of Financial technology online. Due to plethora of businesses that are categorized as the umbrella of fintech it’s tough to put a defined figure on the international value of this industry. Thankfully KPMG produce a quarterly report called ‘The Pulse of Fintech’. This provides a worldwide analysis of the latest investments from the fintech industry. Their latest report states that global acquisition of fintech companies reached a whopping $24.7 billion in 2016, spread across 1076 deals.

To learn more, see this article on “what is fintech ?”
http://www.techbullion.com/what-is-fintech/