What exactly is Fintech? – Definition and Meaning

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Fintech can be a combination of two words namely “Finance” and “Technology”. Completely, method . Financial Technology. It is related to technology innovations inside the financial industry. Put differently; it describes the convergence of finance and technology – or methods technologies are improving entry to finance, from making payments, currency, peer to look lending and also wealth management.


The year 2008 was the dawn of the major evolutionary change in the financial technology industry. This became due to the collapse of your unsustainable banking system that took a lot of risks in the quest for profits. Lehman Brothers were bankrupted, swiftly then emergency rescue promises to save major street names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.

This crisis opened the chance to do things differently. Previously financial technology ended up an in-house enterprise for the banks. The introduction of credit cards inside the 1950’s, ATM’s inside the 1960’s and electronic stock investing 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 large number of economic technology upstarts. Modern firms that wanted to see change and more importantly remove traditional barriers that this banking system had built. This surge in financial technology was quickly labelled as fintech.

Fintech covers a vast spectrum of innovation. Digital wallets, peer-to-peer lending, crowdfunding, micro-loans, insurance and infrastructure are a few locations individuals are seeing room for innovation and disruption to fliers and business cards.

This rapid growth has established a booming financial technology industry and several fintech startups conference online. As a result of large number of firms that are categorized as the umbrella of fintech it can be hard to put an exact you’ll need the international worth of this industry. Thankfully KPMG produce a sydney called ‘The Pulse of Fintech’. This supplies a worldwide investigation latest investments inside 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.

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