Financial technology is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.
Fintech has been one of the fastest growing sectors, with investment growing, new start-ups and investors putting money into incubators and accelerators for innovative small fintech companies. New innovations have challenged the traditional way of doing things in financial services, including peer-to-peer lending means there is now an alternative to borrowing from the bank and mobile-only stock trading apps charging no fees.
For some, fintech investments can be at the riskier end of the spectrum, with start-ups failing to understand the regulatory environment or not packaging their product correctly. However, there are new developments and more innovative technologies being created that can be used in the future. Ideas such as improved data analytics which will help clients refine their investment decision making even further, which makes this and interesting area to be aware of.