Fintech is a branch of the booming economy whose etymology comes from the union of two words: "fin" as finance and "tech" as technology. Fintech or financial or fintech technology is about digitizing the banking and financial system that uses technology to make the system itself more efficient.
Technology has entered the banking and financial sector, and today it is a key part of it. Fintech has accelerated in the internet and mobile era and the 2008 financial crisis allowed financial technology to take over and from here many users understood the slowness of the classic banking system and the speed instead of the fintech sector.
Financial technology is articulated in a wide range of technological solutions applied to personal and commercial finance. In Fintech we find services such as:
- crowfunding property
- peer-to-peer lending
- asset management
- payment management
- credit-scoring
- data collection
- Changes
- currencies or cryptocurrencies such as BitCoin.
All sectors are very different from each other but involve the use of technology in order to make banking and financial processes much more efficient than traditional services.
Many start-ups mainly use fintech services to challenge traditional companies and the phenomenon is on the rise. It is enough to think that fintech is growing by 300% a year in the world, and by 400% in Europe, and as much as 800 million dollars have been invested in the sector in the United Kingdom alone considering that 40% of companies in the City of London are currently employed in services financial institutions. A report dated March 2016 by PricewaterhouseCoopers also pointed out that fintech startups raked in as much as 12 billion dollars in funding in 2016, a figure that more than doubled from the previous year. Fintech is considered not only a revolution for financial institutions, but also for consumers who can benefit from greater transparency, thanks to more accurate and innovative analysis of credit access systems, plus the simplicity of use and speed in services.
