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Financial Technology

Toronto_2, Canada
(Toronto, Canada - Wei-Jiun Su)

 

Financial technology (FinTech), an economic industry composed of companies that use technology to make financial services more efficient, is usually applied to the segment of the technology startup scene that is disrupting sectors such as retail banking, lending and financing, payments and transfers, wealth and asset management, markets and exchanges, insurance, blockchain transactions, etc.. It refers to new applications, processes, products or business models in the financial services industry. However, the FinTech term has started to be used for broader applications of technology in the space – to front-end consumer products, to new entrants competing with existing players, and even to new paradigms such as Bitcoin. The financial services industry is one of the last frontiers new technology has yet to fully conquer. FinTech companies are trying to disintermediate incumbent financial systems and challenge traditional corporations that are less reliant on software. 

Internet-based technology has made it cheap to collect information and to network. This has empowered the sharing economy and allows FinTech companies to seize intermediation business from banks. But both FinTech and "sharing economy" businesses manage information centrally – they serve as middle-men – exactly as traditional financial institutions do. The FinTech revolution is forcing the financial services industry and everything it touches to evolve quickly.

 

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