What is Fintech?

Fintech is the new financial industry that improves the current financial system and our everyday life with innovative technologies.

New technologies in the financial sphere

The field of financial technology is developing rapidly. Every year, there are more sites and applications that simplify the payment for goods and services, the receipt and repayment of loans, as well as the usual process of money transfer.

Payment services are the most popular in fintech today, which significantly save the time for making payments. With their help instant transfers within a country and fast international ones are made. Payments using a QR code also relate to financial technologies.

What financial technology allows to increase

Financial technology is designed to speed up the process of carrying out any banking procedures.

Conceptual approach to the development of the fintech ecosystem

Forming the financial ecosystem will help financial and credit organizations in the competition for customers and increase business income. However, a conceptual approach to the development of such ecosystem requires the development of IT systems in order to collect, store and process huge amounts of data both online and offline.

Innovative financial technology

The development of financial technology began in 2009 after the crisis. Banks used robots to reduce costs, began offering credit to their customers online, and moved financial payments to the Internet. Much greater impact to the development of financial technology made the mobile Internet. As a result, several major financial technologies and capabilities emerged:

  • delivery of services via the smartphone;
  • delivery of services via social networks;
  • alternative payments;
  • marketplaces;
  • innovative business models;
  • artificial intelligence;
  • digital identification and biometrics;
  • open API.

Investing in fintech

For the period from 2010 to 2015 only, the volume of investments in fintech increased to almost 20 billion, which is 10 times more in terms of investments before 2009.

According to KPMG auditing company, the volume of investments in the first half of 2018 amounted to $ 57.9 billion, which outweighed the volume for 2017.

The Fintech boom

Today, many startups do not meet the expectations of investors, although in 2014 the situation was completely reversed. The revolutionary Boom of financial technology fell exactly on that year, in which no name players at that time stood out, and today they are world famous giants of the financial industry such as Square and Stripe payment services, which had raised $ 150 million, Renrenda startup, that had collected $ 130 million, and p2p lending platform.

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