What exactly is Fintech? – Definition and Meaning

Posted on by

Fintech is often a combination of two words namely “Finance” and “Technology”. In full, it is called Financial Technology. It’s attributed to technology innovations from the financial industry. Put differently; it describes the convergence of finance and technology – or ways that technologies are improving usage of finance, from paying, currency, peer to peer lending and also wealth management.


The entire year 2008 was the dawn of the major evolutionary alternation in the financial technology industry. This is due to the collapse of the unsustainable banking system that took way too many risks in its quest for profits. Lehman Brothers were bankrupted, swiftly accompanied by emergency rescue promises to save major high-street names like HBOS, Merrill Lynch, AIG, Royal Bank of Scotland and Alliance & Leicester.

This crisis showed the opportunity to do things differently. Previously financial technology have been an in-house enterprise for that banks. The introduction of cards from the 1950’s, ATM’s from the 1960’s and electronic trading and investing from the 1970’s counseled me driven internally by major players from the banking industry.

The failure from the banking system gave rise into a variety of monetary technology upstarts. Latest companies which wished to see change and even more importantly remove traditional barriers that this banking system had built. This rise 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 places that people are seeing room for innovation and disruption to conventional methods.

This rapid growth has established an excellent financial technology industry and lots of financial news fintech online. Because of the plethora of companies which are categorized as the umbrella of fintech it really is difficult to put a precise figure on the international value of this industry. Thankfully KPMG create a quarterly report called ‘The Pulse of Fintech’. This supplies a worldwide analysis of the latest investments from the fintech industry. Their most recent report states that global purchase of fintech companies reached a stunning $24.7 billion in 2016, spread across 1076 deals.

For more information, check out this article on “what is fintech ?”
http://www.techbullion.com/what-is-fintech/