Financial technology (abbreviated Fintech) refers to new technology that aims to improve and automate the delivery and usage of financial services. Fintech, at its heart, is used to assist corporations, company owners, and consumers in better managing their financial operations, procedures, and lives through the use of specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech is an abbreviation for "financial technology."

  • Fintech refers to the incorporation of technology into financial services organizations' offerings in order to improve their use and delivery to customers.
  • It essentially works by unbundling such organizations' offerings and generating new markets for them.
  • Startups in the banking business disrupt incumbents by increasing financial inclusion and leveraging technology to reduce operational costs.
  • Fintech finance is increasing, but there are regulatory issues.
  • Fintech applications include, among other things, Robo-advisors, payments apps, peer-to-peer (P2P) lending apps, investment apps, and crypto apps.

Fintech also encompasses the creation and use of cryptocurrencies like Bitcoin. While that sector of fintech receives the most attention, the real money remains in the traditional global banking business and its multi-trillion-dollar market capitalization.