Next video:
Loading the player...

Financial technology, or fintech​, is a financial services sector that emerged in the 21st century.

Essentially, fintech is any technological innovation in the financial sector. This can include advances in financial education, retail banking, investment and crypto-currencies.

Examples of fintech include:

  • Stock trading apps and websites,
  • Peer-to-peer lending sites that open competition for loans, thereby reducing rates,
  • Robo-advisor services that provide online, algorithm-based portfolio management,
  • All-in-one online personal finance management, and
  • Budgeting tools.

Fintech has four categories of users:

  • Business-to-business for banks,
  • Business-to-business for banks’ clients,
  • Business-to-client for small businesses, and
  • Business-to-client for consumers.

The fintech industry is growing rapidly, and its growth is expected to continue. 

Related Articles
  1. Tech

    Fintech Is Set to Grow in 2016 

    Based on the amount of growth sustained over the past year, the fintech industry could experience even greater growth moving into the coming year.
  2. Tech

    7 Things That Will Shape the Future of Fintech

    A report by McKinsey & Company highlights seven important changes taking place in the fintech industry that could impact financial advisory firms.
  3. Tech

    Fintechs' Expansion Will Shatter the Status Quo

    Many fintech companies will dramatically expand their national footprint as U.S. regulators open up the sector
  4. Tech

    Fintech: What Advisors Should Expect in 2017

    Here's how the value of fintech is quickly changing the financial services industry.
  5. Tech

    How Fintech Hopes to Shape Future Regulatory Scrutiny

    Greater regulation will most likely be applied to the financial technology industry sooner or later, regardless of its form.
  6. Tech

    How Fintech Advances Improve Finance for All

    Financial technology companies have changed the landscape for the way we manage our financial lives. Here's what to expect moving forward.
  7. Tech

    Global Fintech Investment Hits Record High in 2016

    A recent Accenture study reports a $5.4 billion Fintech investment in Q1’, predicting a “Fourth Industrial Revolution” to disrupt financial markets.
  8. Tech

    4 Reasons Why Financial Advisors Should Use Fintech

    Discover four reasons why financial advisors should adopt the innovative solutions offered through fintech companies, including robo-advice.
  9. Tech

    What's Next for Fintech as VC Funding Slows?

    Venture capital funding may be slowing for fintech, but the rollout of their services isn't.
  10. Tech

    Fintech Insurance Innovations: Coming to Your Policy

    Next stop for financial technology startups: disrupting the insurance industry. It's already started.
Hot Definitions
  1. Tender Offer

    An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the ...
  2. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns ...
  3. Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange ...
  4. Revolving Credit

    A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is ...
  5. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
  6. Contango

    A situation where the futures price of a commodity is above the expected future spot price. Contango refers to a situation ...
Trading Center