The financial technology (or fintech) industry uses modern tools to improve or design new applications, processes and products related to finance. Fintech applications include digital banking, online lending, payment systems and investment platforms. The goal is to provide these services in a better, faster and more user-friendly manner.
Fintech as a term has emerged in the 21st century, but it is not an entirely new concept. Advances in technology have impacted financial services for decades, from the first automated teller machine (ATM) to credit cards to the rise of online banking in the 1990s.
The first significant phase of fintech is characterized by the switch from analog to digital with the installation of the first ATM in 1967, the digitalization of stock exchanges (NASDAQ and SWIFT), as well as the introduction of bank mainframe computers, allowing for greater digitization of money transfers.
The global financial crisis of 2008 showed the strong interconnections between banks and other institutions, as well as the domino effect that can happen when one part of the system crashes – in this case, mortgage lending. It also highlighted the lack of trust in established financial institutions, opening up the market for alternative providers. The emergence of bitcoin and other cryptocurrencies using blockchain technology is a major marker of this era. This period also saw increased use of customer service automation, including chatbots and AI interfaces to reduce staffing costs and speed up responses. https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/