• Fintech is a hybrid industry of two nearly opposing parts—finance and technology
• Fintech’s disruptions may transform not only the way we transact money but the definition of money itself
• Financial technology is a rapidly growing industry.

We’re on the precipice of a major evolution in the domestic and global financial services industry. How we send, receive, store, spend, and invest money may undergo a few radical changes.

Fintech—“financial technology”—is an emerging hybrid industry that brings together legacy financial services and technological innovation. With this combination, the Fintech industry is likely to compete with and disrupt traditional financial services, especially banking.

Financial technology is the driving force behind the rapid digitization of the world. Fusing the concept of financial services with new technology, fintech companies aim to improve traditional methods of moving money around by offering lower costs, time efficiency and improved access for businesses and consumers to manage their finances.

The term fintech can describe many processes, such as online money transfers, mobile payments, loan management, or investments, all done digitally without the need for intermediary.

There are countless examples of how Fintech is reshaping the world of money, commerce and financial services, but they all fall into three primary categories:

• New tech (such as apps) that allow for monetary transactions online,
• Digital money which is a blockchain technology-based alternative to cash and
• The Internet of things (IoT)-enabled credit and loan services (which are replacing and digitizing traditional banking services).

Naturally, fintech is often described as a disruptor of the finance world. The financial services once recognized as the domains of banks, brokerage houses and desktop computers are now available on mobile phones.

It’s one thing to invest in a financial asset for the long term. It’s another thing to invest in the very source and infrastructure that may give all financial assets their substance, mobility, and meaning.

Fintech’s growth is driven by three primary factors:

1. Cryptocurrencies: Fintech’s fortunes are closely connected to the skyrocketing popularity of cryptocurrencies, such as bitcoin, and blockchain technologies that provide a safe, decentralized platform for them.
2. Mobile devices: Smartphones, tablets and laptops are used for nearly everything these days, and it’s almost hard to imagine how we lived without them. None of these devices would have been able to thrive without the rise of mobile apps and related technology.
3. Millennials: This generation is the most tech-savvy in U.S. history. Millennials are the first people to grow up with the internet and smartphones, and they’re on track to become the biggest wage earners, buyers and money managers since baby boomers.

To invest in this rapidly evolving industry, you might consider paying attention to all the moving parts that feed into the engines of financial progress and disruption. In a way, the current areas of only scratch the proverbial surface of Fintech’s potential.

1. https://tickertape.tdameritrade.com/investing/what-is-fintech-financial-technology-industry-15946
2. https://paulmampillyguru.com/america-2-0/fintech-companies/
3. https://finance.yahoo.com/news/top-10-best-fintech-companies-144738653.html