What is Fintech and why the entrepreneurs must know it!

This word keeps thrown up all the time:

Whether you are in the corporate circles or at networking parties, one word that most often gets thrown in or rather thrown up in an argument is ‘Fintech’. While Fintech is a combination of the two words finance and technology, a lot of people do not quite understand what it means and what implication it has on the society that we live in.

Tech gurus at it:

A lot of the financial and tech gurus have written elaborately about how the evolving technologies in our society have evolved our society to be what it is and some of them like Jens Munch are also disappointed that even after having gigantic investments by world leaders in this field, a lot of people still do not understand the actual meaning of the word.

He in his Forbes article argues prolifically that in spite of global investment of more than $20 billion today; the word is randomly used and interchangeably used for simpler processes thereby diluting its impact on the corporate environment. Why there is also no mention of this word even in the Oxford dictionary yet!

So, what exactly is Fintech?

In the layman’s terms, the definition of Fintech is and I quote Fintech is usually applied to the segment of the technology start up a scene that is disrupting other sectors such as mobile payments, money transfers, loans, fundraising and even asset management unquote.

As of today, there is a great demand for newer technology talent in the first world countries where they are of the categorical viewpoint that if they have to stay ahead in the rat race with the other powerful nations of the world, they need to evolve better and stronger technologies so that the society can progress and not witness any meltdown.

Almost all the countries of the world realize the potential:

While all the countries of the world are running their own race, Europe has clocked in the highest global investment in this sector and continues to be the pioneer with a growth spike that is curved upwards and is increasing in a few hundred percents every year.

What is adding to the increase in such growth is:

  1. An associate network of regulations in the field of finance;
  2. Newer innovations and
  3. Enlightened consumer behavior.

 

Today, various countries of the world and especially the financial capitals of the world make sure that they invest adequately in technology related to finance and its various processes because they know for sure the change that is heralded and what the future looks like!