Well, the term fintech includes a huge range of products, technologies, and business models that are changing the financial services industry.
It refers to everything from cashless payments, to crowdfunding platforms, to robo-advisors, to virtual currencies.
Here at a major fintech conference in Amsterdam, hundreds of companies are trying to disrupt the banking and finance industries by changing the way we pay and borrow money. And investors are buying it.
Global investment in the fintech sector has added up to nearly $100 billion since 2010. In 2017 alone, fintech investment surged 18%.
Startups focusing on payment and lending technologies received the majority of those funds. It’s not just startups that are getting into fintech. Some of the world’s biggest companies from Apple to Alibaba are going big on it, too.
Just think of Apple Pay or Alipay. One reason for all of this investment?
Consumers are adopting fintech – fast. One out of every three people across 20 major economies report using at least two fintech services in the last six months China and India are leading the way with more than half of consumers using services like money transfers, financial planning, borrowing and insurance.
Financial technology has filled a void for people around the world who don’t have access to traditional banking services.
In fact, it’s estimated nearly two billion people worldwide are without bank accounts. Now, thanks to fintech, all you need is your phone to take out a loan or insurance.