What is FinTech and how it has impacted banking?

FinTech is no longer a jargon of the banking industry. Instead, it has become a familiar term in technology in general. The Global investments in FinTech ventures has doubled to a whopping $112 billion as compared to $51 billion last year. This is more than an evidence to prove that the digital revolution is at the doorsteps of financial services sector.
This revolution is having a huge impact on all the banks and financial institutions globally. But what actually FinTech is? Let’s see.

What is FinTech?

The term FinTech is derived by joining two words which are financial services and digital technology. In a nutshell, FinTech simply prompts the use of digital technology by startups to come up with innovative products and services such as mobile payments, alternative finance, online banking, big data, and overall financial management.
FinTech was introduced as a technology that was used at the back-end systems of financial institutions and banks. However, since then its definition has changed significantly. Now it encompasses several applications that are consumer based. By 2019, you can trade stocks, manage funds, and pay for your insurance and food via this technology.
The FinTech for banking has impacted numerous applications and revolutionized the way consumers access their finances. Its impact ranges from mobile payment apps like Square to investment and insurance companies. This profound impact of FinTech can also be seen as a potential threat to the brick-and-mortar or traditional banks.


Location: United States

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