What is Financial Technology?

Financial Technology or Fintech in simple term is any technological innovation in any factor. Other than that, fintech also is an industry consists of companies that use new technology and innovation to disrupt the marketplace of traditional financial institutions and intermediaries in the delivery of financial services by trying to replace or enhance the usage of financial services of incumbent companies. 

FinTech affect the entire financial services industry. Financial services is almost entirely changed the nature of each financial activities of banks for payment to wealth management. Financial technology will disruptive to financial services. The basic conflict will occur between the old firms and new firms about financial services process from top to bottom and incumbent financial services firms are trying to keep up with new products of their own. Traditional banks and financial services firms are spending greatly in innovation, but leveraging their investment is hard with so much invested in legacy systems and profit centers. Other than that, new business starts struggling to navigate a rapidly changing regulatory landscape and need to increase the amount rapidly with limited resources. Blockchain technology appears to overhaul financial services by banks and startups. This technology can stores and records Bitcoin transactions and reduce the cost of financial activity to virtually zero and remove a lot of the traditional banking activities.