The chances are FinTech is a phrase that many of us have come across before but may not understand exactly what it means. The topic surrounds the use of technology in the world of finance, and how it has developed over the years.
The likes of smartphones which are now being used to manage our money through online banking, as well as new cryptocurrencies such as Bitcoin, have made the financial landscape look increasingly different compared to what it was ten years ago. We understand the importance of this emerging technology and have provided a comprehensive breakdown of exactly what FinTech is.
What Is The Definition Of 'FinTech'?
Here's how Oxford Languages defines it:
computer programs and other technology used to support or enable banking and financial services.
"fintech is one of the fastest-growing areas for venture capitalists"
What Does 'FinTech' Mean?
In simple terms FinTech refers to any development in technology that is now used to help people manage their finances including online banking, automate insurance, trading and risk management. In recent years these developments have become increasingly more prominent in society with many of us opting to use technology to help us with our money opposed to the traditional services of banks, wealth management companies and insurers.
The last decade alone has seen a considerable increase in FinTech all over the world and between 2008 to 2015, investment in financial technology rose by over 2,000%! Various FinTech businesses are now popping up everywhere on almost a daily basis meaning banks are needing to invest millions into the area if they want to stay ahead of the crowd. Many FinTech companies make use of technology such as apps, software and artificial intelligence to help support the finances of their customers.
In the modern-day people want quick, convenient and easy access to their money at a click of a button and this is what FinTech is all about.
When Did FinTech Start?
Advancements in FinTech have certainly increased in the last decade or so, but actually its origins can be traced back to as early as the 1950s.
The topic of FinTech is actually extremely broad and where most people will automatically think of apps and software, the very first example of FinTech is credit and debit cards. Introduced so that people did not have to carry money around with them at all times, they were soon followed by ATMS in the 60s.
As time progressed the electronic stock market came into fruition, before the internet really had an impact on the industry. Now in the 21st century developments are still being made with enhancements to banking services being made all the time.
What Does The Future Hold For FinTech?
As all areas of technology continue to advance there is sure to be plenty of changes to FinTech in the coming years. It isn’t clear what these will be yet but as one in three of us manage their financial lives by smart phone apps, the public are certainly keen for these services to continue.
One area that has proven to be popular so far and is sure to continue to grow is Robo-advisors. These are online systems that act as a financial advisor offering assistance and advise on investment, retirement and other financial issues without the need to include interaction with another human being.
Despite all of the positives, some people still have concerns about FinTech especially when it comes to data security and hacking.
This is one of the reasons why FinTech makes for one of the most interesting topics at speaking events. Champions Speakers have a whole host of excellent FinTech speakers on offer who can add their fascinating insight to every event they attend. For more information call us on 0207 1010 553 or complete our online form.