“FinTech” combines the first syllables of the words “Finance” and “Technology”. It is therefore easily concluded that the conceptual definition of this word is “Financial Technology”. But how can the concept of “Financial Technology” be defined? Financial Technology can be considered to describe the group of all technological appliances, computer programs, or any other kind of technological appliances and/or methods used to enable banking and financial services. Tania Ziglerm, the CCAF’s global benchmarking lead, seems to be struck by “how FinTech is increasingly used as an all-encompassing term, describing a diverse range of organizations that all have financial technology at the centre of their operations and agenda.”
FinTech is a digital revolution. It describes the group of all major changes to asset management, business and personal loans, fund raising and money transfers as well as the way we organize our personal finances. One phrase describing FinTech keeps popping up in financial magazines and related journals, blogs and discussion panels: it describes FinTech as “one of the fastest-growing areas for venture capitalists”. FinTech is thus especially prevalent amongst startups. For example, Linas Jegelevicious wrote in an article entitled “FinTech sector comprises one fifth of all Latvian startups” published by Intellinews on July 25th, that “a new report published by Swedbank Latvia on July 24 states that one in five new Latvian startup companies is part of the financial technology, or fintech, sector.”
Could it be assumed that the traditional methods used in the financial services industry are no longer in use? Not yet. But the increasing popularity of “FinTech” certainly changes the way in which humanity deals with banking and financial services. Crowdfunding platforms such as Kickstarter, Patreon and GoFundMe, mobile payments, Robo-Advising and stock training applications, as well as all online applications used for budgeting are some of the examples of FinTech.
Some advantages of FinTech are its competitive pricing, since Fintech products are usually found at lower prices, the easy access to banking and lending products and the ability to improve one’s financial situation in an easier way.
IATE goes AUDIO
This week, you can tune in to another IATE goes AUDIO feature. Click below to listen to “FinTech” explained in clear English.
References
Finextra, “Defining FinTech to better understand the changing ecosystem under Covid-19” [ONLINE] Available at https://www.finextra.com/newsarticle/36143/defining-fintech-to-better-understand-the-changing-ecosystem-under-covid-19 [Accessed 30 July 2020]
Jegelevicious, Linas “Fintech sector comprises one fifth of all Latvian startups”, [ONLINE] Available at https://www.intellinews.com/fintech-sector-comprises-one-fifth-of-all-latvian-startups-188228/ [Accessed 30 July 2020]
Online Cambridge Dictionary. 2020. Meaning of FinTech by Online Cambridge Dictionary [ONLINE] Available at https://dictionary.cambridge.org/dictionary/english/FinTech [Accessed 30 July 2020].
Audio Recording by Janna Mack. From Luxembourg, she has degrees in Linguistics, Education, and Translation from Glasgow University.