Fintech is the an emerging financial services sector of the 21st century enabled by new financial technologies. It covers any technological innovation in the financial sector.
The term financial technology can apply to any innovation in how people transact business, from the invention of money to double-entry bookkeeping. Since the internet revolution and the mobile internet revolution, however, financial technology has grown explosively, and fintech, which originally referred to computer technology applied to the back office of banks or trading firms, now describes a broad variety of technological interventions into personal and commercial finance.
A Fintech business describes a business that aims at providing financial services by making use of software and modern technology. These businesses, if not part of a bank, directly compete with banks in most areas of the financial sector to sell financial services and solutions to customers.
Millenials and younger people prefer quick and easy banking services instead of having to go to a bank and deal with bank personnel. So, this trend will most likely only get stronger.
Fintech has already started to change the way money is handled. This has and will continue to change the banking industry.
