WHAT IS FINTECH?
Financial technology (abbreviated fintech or FinTech) is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.
The use of smartphones for mobile banking, investing, borrowing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public.
Financial technology companies consist of both start-ups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.
FinTech has emerged in this century, initially being a term applied to the technology employed at the backend systems of already operational financial institutions. Gradually this concept has evolved to more client-oriented services and definition.
FinTech now includes different sectors and industries such as education, retail banking, fundraising and investment management amongst many others. In general terms “financial technology” might apply to any innovation in how people transact business, ranging from the creation of digital money to bookkeeping.
The evolution of internet along with the smartphone revolution that allows mobile internet, has allowed financial technology to grow exponentially, thus fintech which originally referred to computer technology applied to the back office of banks or trading firms, nowadays involves variety of technological interventions into personal and commercial finance.