What’s Fintech? – Definition and Meaning

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Fintech is really a mix of two words namely “Finance” and “Technology”. Fully, stage system Financial Technology. It is often attributed to technology innovations within the financial industry. Put differently; it describes the convergence of finance and technology – or methods technology is improving access to finance, from making payments, currency, peer to peer lending as well as wealth management.


The year 2008 was the dawn of your major evolutionary change in the financial technology industry. This is a result of the collapse of your unsustainable banking system that took way too many risks rolling around in its quest for profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue intends to save major traditional names including HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.

This crisis exposed the opportunity to do things differently. Previously financial technology ended up an in-house enterprise for the banks. The introduction of cards within the 1950’s, ATM’s within the 1960’s and electronic stock investing within the 1970’s were all driven internally by major players within the banking industry.

The failure within the banking system gave rise to a number of economic technology upstarts. Innovative new businesses that desired to see change and most 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 just a few locations where people are seeing room for innovation and disruption to fliers and other modes.

This rapid growth has established an excellent financial technology industry and many fintech magazines online. Because of the great number of businesses that come under the umbrella of fintech it really is difficult to put a perfect figure on the international price of this industry. Thankfully KPMG create a quarterly report called ‘The Pulse of Fintech’. This provides a worldwide investigation latest investments within the fintech industry. Their most recent report states that global investment in fintech companies reached an astonishing $24.7 billion in 2016, spread across 1076 deals.

To learn more, see this article on “what is fintech ?”
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