Financial technology (better known as Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. At its core, fintech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is a combination of "financial technology."
- Fintech refers to the integration of technology into offerings by financial services companies in order to improve their use and delivery to consumers.
- It primarily works by unbundling offerings by such firms and creating new markets for them.
- Startups disrupt incumbents in the finance industry by expanding financial inclusion and using technology to cut down on operational costs.
- Fintech funding is on the rise but regulatory problems exist.
- Examples of fintech applications include roboadvisors, payments apps, peer-to-peer (P2P) lending apps, investment apps, and crypto apps, among others.