FinTech has always been around. Whether it be the introduction of credit cards in 1950, or the introduction of hedge funds, Financial Technology has always been relevant to helping traditional financial services perform in the most efficient and optimised way possible.
However, over the past few years, FinTech has snaked its way into every single part of our lives. Whether it be Google collecting out data across the web to track and analyse to using QR codes to transfer money, Fintech has definitely made a place for itself in our daily lives.
However, with the recent advent in the use of technology in all industries and sectors, it can be difficult to understand what comes under the ambiguous umbrella of FinTech and FinTech companies in the modern day. So, if you were still wondering what exactly FinTech is, here is a detailed breakdown.
What is FinTech?
FinTech or Financial Technology is a disruptive technology that competes with traditional financial services through the use of technology to advance its own financial offerings. FinTech also often combines with traditional financial services to offer more enhanced services to customers. The reason this industry is set to become one of the fastest growing sectors in the upcoming years is simply due to its disruptive scale and innovation rate.
FinTech is also one of the most stable rising sectors, being backed by scores of traditional banks, who actively invest and and often acquire FinTech startups to offer better experiences to their customers and stay relevant.
While FinTech has always been around, it has evolved multiple use cases for many industries. FinTech has made risk-aversion in banks more efficient by using algorithms to determine the chances a debtor will default on a loan. FinTech has allowed for machine learning algorithms to even run entire hedge funds. This variety has also allowed it to be one of the most unique technologies simply due to the many ways it functions.
With constant collaboration and cooperation with major world banks across the globe, the future for FinTech seems to be a pathway of stable growth into acceptance as one of the lead players in the global economy and technological landscapes.