Definition of Fintech
The word fintech derives from the coupling of two complementary areas:
financial services and solutions based on advanced technology.Kickstarter, a very large funding platform for creative projects, has
strongly lowered the level of accessibility of funds for startups or simple
projects.15 Wealthfront embodies a fusion between finance and automation,
allowing the management of assets through complex algorithms.16
CommonBond is a marketplace lender that refinances graduate and
undergraduate student loans.The word "fintech" has made its way into
the Oxford Dictionary as: "Computer programs and other technology
used to support or enable banking and financial services."12 Wikipedia
defines "FinTech" as: "Financial technology, also known as Fintech, is
a line of business based on using software to provide financial services. fintech companies are generally startups founded with the purpose of
disrupting incumbent financial systems and corporations that rely less on
software."13
It is possible to set out a broad working definition of the term that
perfectly fits with the aim of this book.A simpler
definition
of fintech is as an industry made up of organizations using
novel financial technology to support or enable financial services.14
There are twomain aspects to consider--the subject and the scope of
the definition:It is important not to consider fintech initiatives as an ecosystem populated
only by startups.The term is often associated with startups,
mainly because the use of advanced digital solutions in financial services
is a relatively modern trend.These examples depict a clear situation.