Reading about the massive growth of the financial technology or FinTech industry, for short, is mind-boggling. While some claim that investment in FinTech start-ups is slowing, others, especially in Asia, see no end in site.
TechCrunch writes in a recent article that “FinTech” was one of the top ten financial buzzwords for 2015.
Big banks will continue losing ground to FinTech players or partner with them, says David Klein in TechCrunch.
A new crop of companies across lending, wealth management and payments — think Prosper, Betterment, Affirm — are coming to market and gaining share quickly, most likely because these newer companies are more responsive to consumers’ needs than traditional financial companies…Perhaps by the end of 2016, fintech will no longer be a buzzword at all.”
FinTech Industry Definition and Growth
Investopedia defines it this way:
Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions. Since the end of the first decade of the 21st century, the term has expanded to include any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investment and even crypto-currencies like bitcoin.”
As OpenFinInc has reported in previous articles, FinTech in emerging countries, such as Bangladesh and Kenya, has impacted the delivery of financial services to unbanked individuals. You’ll also find examples in the FinTech Book by Carol Realini and Karl Mehta.
Reuters reports: “In Asia, investments rose at a much faster pace, led by mammoth funding rounds for fintech companies in China and India, and with billions of consumers in the region using their mobile phones for everything from buying insurance to paying for goods, the trend is expected to continue.”
Ten Examples of FinTech Applications
FinTech is fragmenting in all directions–too many to cover in this article. To better understand this fragmentation, however, see these ten FinTech industry examples.
As the Financial Times reports in this short video, FinTech is driving financial services especially in the banking sector:
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