The term “fintech” refers to new technology that aims to enhance and automate the delivery and usage of financial services. Fintech, at its most basic level, is used to assist corporations, company owners, and individuals in better manage their financial operations, procedures, and lifestyles via the use of specialized software and algorithms that run on computers and, increasingly, smartphones. The term “fintech” is a mix of “financial technology” and “financial innovation.” Fintech was coined in the twenty-first century to describe the technology used in the back-end systems of established financial organizations.
However, since then, there has been a move toward more consumer-focused services and, as a result, a more consumer-focused definition. Fintech currently spans a variety of sectors and businesses, including education, retail banking, nonprofit fundraising, and investment management, to mention a few.
Fintech also encompasses the creation and usage of digital currencies like bitcoin. While that sector of fintech gets the most attention, the main money is still in the traditional global banking business, which has a multi-trillion-dollar market valuation.
Financial technology is a combination of financial operations with advanced & innovative technologies like block chain, cloud based technologies, auto ledger balances, big data, application development and others, and is abbreviated as FinTech.
FinTech enables internet based, application oriented products and services to individuals and enterprises on a real-time basis. These ensures users to avail services offered by finance institutions at greater transparency and efficient manners. Financial technology is not limited to banking sectors; it also includes insurance, third party services, financial institutions, payments, crowd funding industry, non-banks and others.