Fintech - The evolution of modern financial technology in the 21st Century

Financial procedures have evolved drastically over the last 100 years. We have seen a huge change in how many aspects of finance are processed such as payments, investment, data storage and types of currency. A term that has sprung up in the last couple of decades and gained prominence is ‘Fintech’ – this articles details exactly what Fintech is, and why it is essential for the modern world.

What is Fintech ?

Fintech = financial technology

This is the basic meaning. Fintech is much more than that however – it is any new type of innovative technology that competes with or precedes traditional financial methods; particularly the delivery of financial services. Although it is a relatively new term, the process has been evident since the early 1900’s in one form or another. Banks, organisations and governments are continually trying to improve financial technology and improve services for their customers and citizens.

Why is Fintech Beneficial?

In today’s world Fintech is essential. Hundreds of years ago when business was predominantly national and transactions were small in value, there was no need for advanced financial processes or technology. Businessmen and customers could simply exchange goods and services for physical currency.

As overseas trade becomes prominent however, and business became one of the most important factors in the world, it was inevitable that our financial processes had to improve. Scaling was required to allow transactions to take place on a global scale. Fintech has enabled businesses to develop rapidly, and for millions of people to have access to the funds they need in an instant. In this type of business-centric world, that type of access and service was an absolute must.

Milestones in Fintech Development

Throughout the last 100 years we have seen a plethora of major milestones in the history of financial technology development . We have listed some landmarks below:

• The world’s first ATM was opened in 1967 by Barclays
• The first online checking account was used in 1995 by Wells Fargo
• Leading online payment processing platform PayPal was founded In 1998
• The first stable cryptocurrency was released in 2009 – Bitcoin
• Digital media giant Apple launched Apple Pay in 2016

As you can see, Fintech has come a long way – we have transitioned from cash machines and simple electronic payment methods, to full functioning online banking and even digital currency.

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Source: Fintech – The Evolution Of Modern Financial Technology In The 21st Century – ValueWalk