What’s Fintech? – Definition and Meaning

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Fintech is really a combination of two words namely “Finance” and “Technology”. Entirely, stage system Financial Technology. It is usually related to technology innovations within the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technologies are improving entry to finance, from paying, currency, peer to look lending and also wealth management.


The year 2008 was the dawn of the major evolutionary alteration of the financial technology industry. This was attributable to the collapse of the unsustainable banking system that took lots of risks in their search for profits. Lehman Brothers were bankrupted, swiftly as well as emergency rescue promises to save major traditional names for example HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.

This crisis opened up the opportunity do things differently. Previously financial technology had been an in-house enterprise for your banks. The introduction of bank cards within the 1950’s, ATM’s within the 1960’s and electronic trading within the 1970’s counseled me driven internally by major players within the banking industry.

The failure within the banking system gave rise into a large number of monetary technology upstarts. Innovative new firms that wished to see change and above all remove traditional barriers that the banking system had built. This increase 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 people are seeing room for innovation and disruption to traditional methods.

This rapid growth has generated an excellent financial technology industry and many fintech startups conference online. Due to great number of firms that come under the umbrella of fintech it’s challenging to put a perfect figure on the worldwide price of this industry. Thankfully KPMG make a quarterly report called ‘The Pulse of Fintech’. This supplies a worldwide research into the latest investments within the fintech industry. Their newest report states that global purchase of fintech companies reached a whopping $24.7 billion in 2016, spread across 1076 deals.

For more information, check out this article on “what is fintech ?”
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