What Is Fintech? Definition, Evolution and Examples & Financial technology

What Is Fintech? Definition, Evolution and Examples & Financial technology

Over the past few years, fintech companies have disrupted virtually every aspect of the financial industry. Ten years ago, people had to visit a bank or financial company to apply for a mortgage, small business loan or simply transfer funds from one bank to another. Today, fintech has made it possible to invest, borrow, save and transfer funds through online and mobile services without ever stepping foot inside a bank. Though traditional institutions were slow to adopt fintech solutions, both startups and established companies are betting on digitized financial services.

What exactly is fintech?

Fintech, or financial technology, is the term used to describe any technology that delivers financial services through software, such as online banking, mobile payment apps or even cryptocurrency. Fintech is a broad category that encompasses many different technologies, but the primary objectives are to change the way consumers and businesses access their finances and compete with traditional financial services.

Evolution of fintech

Fintech has been around much longer than most people think. While the latest iteration of fintech allows you to pay for a cup of coffee with a mobile app, the history of financial technology can be traced back to the earliest credit cards that were adopted into the general public in the late 1950s.

After the credit card, financial technology evolved and introduced several major milestones to the mass market, such as ATMs, electronic stock exchanges, bank mainframe computers, and online stock exchanges. Each new piece of technology advanced the financial infrastructure that most people used everyday, but rarely had to think about.

Before the 1990s and the era of the internet, traditional financial institutions, such as banks, thrived on fintech. Continue reading “What Is Fintech? Definition, Evolution and Examples & Financial technology”