FinTech (financial technology) is a term, which is a combination of finance and technology, and is used to refer to the financial service industry that appeared in the 2 1 century. The earliest Fintech was put forward by the Financial Services Technology Alliance established by Citibank in 1990s.
At first, the term only refers to the computer technology used in the back end of financial institutions, but it has been expanded to include all innovations and new technologies used in the financial sector. FSB (Financial Stability Board) defines financial technology as innovation based on science and technology in financial services, which leads to new business models, applications, processes or products.
Development history of financial technology:
Financial technology has risen in developed countries such as Britain and America. It can be traced back to the financial globalization in 1866, and the first transoceanic cable started in 1866. The combination of finance and technology has promoted financial globalization to a new height, and the communication encryption and password cracking technology promoted by World War II has also accelerated the rise of financial technology in the 1.0 era.
1967, Barclays Bank of England launched the first ATM, which is the first ATM in the world, replacing some tellers and branches. Since then, global financial technology has entered the stage of Fintech2.0, which is also the beginning of modern financial technology. The main feature of this stage is the digital business system.
After the global financial crisis broke out in 2008, the traditional banking business suffered heavy losses. Traditional banks seek technological transformation, and technology enterprises provide services for financial enterprises. At this time, start-ups rose in the financial market, and the Fintech3.0 era began.