The term Fintech (Financial Technology) refers to software and other modern technologies used by businesses that provide automated and improved financial services. Fast and innovative progress such as Mobile Payments changed the way we manage our finances.

Financial technology (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”. When fintech emerged in the 21st Century, the term was initially applied to the technology employed at the back-end systems of established financial institutions. Since then, however, there has been a shift to more consumer-oriented services and therefore a more consumer-oriented definition. Fintech now includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management to name a few. Fintech also includes the development and use of cryptocurrencies such as bitcoin. While that segment of fintech may see the most headlines, the big money still lies in the traditional global banking industry and its multi-trillion-dollar market capitalization.

India is considered to be 2nd biggest home for Fin-tech companies. Not less than 2500 startups are operational now. Few of them have become unicorns such as PayTm, a startup is called a unicorn if its revenue growth is more than $ 1 billion.

The facts about Fintech are:

  1. There are an estimated 7000 FinTech startups present around the globe with operations in 54 countries as of 2016.
  2. Ant Financial which runs China’s biggest mobile payments service  Alipay is the most valuable Fintechin the world valued at US$ 60 billion. The company has raised US$ 4.5 billion in funding since it’s founding in 2004.
  3. The second most valuable Fintech company in the world is the Chinese P2P lending firm Lufax. It is valued at US$ 18.5 Billion.
  4. If you had invested US$ 100 inBitcoinseven years ago in 2010, it would have bought you 100 coins as it’s the price was hovering around US$ 1. Today on 7th August 2017, Bitcoin is trading at US$ 3250, which means your investment would be worth US$ 325,000.(Rs 2.2 Crore)
  5. The most valuableFinTechcompany in the United States is Stripe, an online payment processing firm. Founded in 2010, the company is valued at US$ 5 billion and counts Salesforce, Twitter and Kickstarter as some of its customers.
  6. 2 out of every 7 people in the world are already using some form of FinTechinnovation. The race is in getting FinTech services to the remaining 5 people..
  7. Alipaywhich is the dominant online payment solution in China processed 3 times more payments than the global giant PayPal did in 2017.
  8. The United Kingdom is home to more than 60,000 people working in theFintechSector, this is second only to Silicon Valley in San Francisco.
  9. FinTechInvestments grew by 11% to touch $17.4 billion in 2016. US$ 50 billion has been invested in FinTech companies between 2010 and 2015.
  10. It is estimated that UK banks will lose up to 40% of their retail revenue toFinTechcompanies by 2020.
  11. The number of Europeans who use a mobile device to make payments has tripled from a low of 18% observed in 2015 to touch 54% in 2017.

So, if you are looking for a trending futuristic sector, fintech can be a promising one…!