What Is Fintech?

Fintech is an amalgamation of "Finance" and "Technology". But what is a fintech company? Here's a good explanation from investment banking firm KBW:

The financial services industry is unique in the amount of data generated from daily operations as well as the amount of data analyzed and processed to make effective business decisions. Fintech companies leverage assets such as advanced data aggregation and analysis, innovative technology, and creative thinking.

Fintech companies are garnering attention (at least from a media aspect) in almost every single vertical of the financial services industry including traditional banking, the cards/payments space, consumer lending, insurance, traditional wealth management and brokerage, and even mortgage lending.

Despite the recent attention, fintech is not a new term or vertical in financial services. Several players have operated in the space and incorporated technology into their businesses to drive new products and services in financials for quite some time. More recent developments in mobile technology, data analytics and a lack of initial dedicated interest from traditional financial services players allowed new entrants to target high-growth niches in fintech, which in turn raised the profile of the industry.

Fintech helped rejuvenate the less exciting and unattractive areas of financial services and simultaneously attracted increasing interest and investment from private equity and venture capital.

Many people consider fintech to be the future of the financial services industry. A great way to get involved is by attending the annual Benzinga Fintech Awards conference in May.