Fintech for Dummies

Fintech is an acronym for two long words: financial technology.

The standard Oxford definition of fintech is “computer programs and other technology used to support or enable banking and financial services.”

 McKinsey & Company characterizes a fintech company as:“start-ups and other companies that use technology to conduct the fundamental functions provided by financial services, impacting how consumers store, save, borrow, invest, move, pay, and protect money.”

While Accenture states that fintech is about using technological advances to improve financial services, emphasizing that:“the ‘tech’ in Fintech is the emergence of brand new technologies, such as AI, blockchain, analytics and big data.”

KPMG defines fintech as “a portmanteau of finance and technology” which includes (1) “businesses who are using technology to operate outside of traditional financial services business models to change how financial services are offered” and (2) “that use technology to improve the competitive advantage of traditional financial services firms and the financial functions and behaviors of consumers and enterprises alike.”

And my definition of a fintech specifically broken down for dummies is:

“A tool that helps grown-ups take care of their money using special apps and computers.” It is as simple as that.

As always, thank you for following along and share with your friends if it resonated with you!

Catch you next time Zincher!