Fintech. It’s new. It’s big. Everyone wants a piece of it. Better jump into Fintech before it’s too late!
But what is Fintech? Fin? Like the thing that fish have? That Chinese people put in soup for special occasions?
No, it’s not the technology behind Shark’s Fin soup.
It’s “Financial” Technology.
Oh, that’s simple. Fintech is about money! I know what that is!
But since when is money new? And everyone has always wanted a piece of it. So “Fintech” can’t just be money, if it’s both “hot” and “new.”
And it’s not. “Fintech” is the name for a diverse collection of companies and products, each of which applies modern technology to some aspect of financial transactions.
Phew! That’s quite a mouthful! And kind of vague. So let’s dig in and see what’s really going on.
Fintech and real people
First of all, let’s be clear that the vast majority of people, normal people, not only don’t know what “fintech” is, they don’t need to know and don’t really want to know. Who feels the urgent need to replace their old “fin” with a fancy new “fintech,” after all?
Just think about phones. Maybe you didn’t envy the people who walked around with giant phones with antennae sticking out of them yakking away on the street.
But the second you saw someone pulling a ringing flip phone out of their pocket and answering the call, you probably felt the urge. And then when the iPhone came out? There were lines snaking out of Apple stores. Everyone knew what phones were and how they worked, and all you had to do was see one of the fancy new ones to want one.
“Fintech” is something investors, market analysts and corporate types in financial companies think and talk about. Regular people? Nope. It’s more like "energy sector” or “entertainment;” it’s a group term that covers lots of stuff that’s only vaguely related. For example, here’s a graphic that shows one group’s view of fintech:
And then when you dive into just one sector of Fintech, Bitcoin/Blockchain, here’s something that shows the intense interest of big corporate players in it:
Over 70 strategic investors have put real, old-fashioned money into these startups!
Conferences
Let's talk about conferences. Big ones. That, as a normal, everyday kind of person, you've probably never heard of.
Like Money20/20, an amazing conference that started just four years ago, whose subject is "disruptive ways in which consumers and businesses manage, spend and borrow money."
Another conference is smaller, but is all about people who invest in the kinds of small companies at Money20/20:
And who among us "normal" people might have even gotten close to the right answer to the question, "How much money was invested in Fintech companies last year?"
Perhaps now you're starting to get a sense of why Fintech is new ... and why it's hot, hot, HOT!!
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