Fintech is a branch of the rapidly expanding economy whose etymology derives from the union of two words: “fin” as finance and “tech” as technology. The Fintech or financial technology or techno finance concerns the digitalization of the banking and financial system that uses technology to make the system itself more efficient. The German FinTech technology happens to be the best option here.

Technology has entered the banking and financial sector, we say immediately and today it is a fundamental part of it. The Fintech has undergone one great acceleration in the internet age   and furniture and the financial crisis of 2008 allowed financial technology to take over and from here many users understood the slowness of the classic banking system and the speed instead of the Fintech sector.

Financial technology consists of a wide range of technological solutions applied to personal and commercial finance. In Fintech we find services such as:

• Crowdfunding
• Peer-to-peer lending
• Asset management
• Payment management
• Credit-scoring
• Data collection
• You change

Digital currencies or crypto currencies such as Bit Coin.

All sectors that are extremely different from each other but that involve the use of technology in order to make banking and financial processes much more efficient than traditional services.

Many start-ups above all use Fintech services to challenge traditional companies and the phenomenon is on the rise. Suffice it to say that techno finance records a 300% annual growth in the world, and 400% in Europe and a good 800 million dollars have been invested in the sector only in the UK considering today that 40% of the City of London companies are employed in technological financial services. Finally, a report dated March 2016 of PricewaterhouseCoopers pointed out that the Fintech startups raked in $ 12 billion in funding in 2016, a figure that more than doubled compared to the previous year. Fintech is considered not only a revolution for financial institutions, but also for consumers who can benefit from greater transparency, thanks to more accurate analyzes and innovative credit access systems to which is added the simplicity of use and speed in services.

Precisely what is it? How can it improve the quality of financial services, but above all it is on a collision course with traditional finance?

Including the broad meaning of Fintech, we can now talk more specifically about what it is.

Most likely, many citizens use or deal with Fintech every day, without knowing that it is techno finance. An example is crypto currencies or electronic payments. We will help you in explaining with a list, in which the main sectors concerning techno finance are present.

Crypto currencies

As we anticipated, digital currencies are part of the Fintech galaxy, as are ICOs, which is the process of creating a crypto currency. All the technology behind virtual currencies is considered techno finance, including the block chain.

It allows data storage without having a central register. This data is in fact public on a network of multiple computers.

They are often referred to when speaking of Ethereal, but may not only cover crypto currencies. These are programs that automatically allow the creation of contracts between buyers and sellers. They are also called “smart contracts”, although the English term is preferred.