Fintech is short for financial technology. This is a common term used financial advisors and websites such as www.plenty.com.au because it deals with financial planning. According to fintech industry, it has received a total of $17.4 billion worth of investment in 2017 and the industry continues to thrive. Looking at the Fintech Adoption Index of EY, one third of the consumers all over the globe are using at least two different types of fintech services. Around 84 per cent of the consumers know about the presence of fintech which is 22 per cent higher compared to last year.
There are many users that are already utilizing financial services apps but they are not aware it is categorized as fintech while others are completely unaware of what fintech is all about. These are financial technologies that have been developed to serve financial services. These are technologies introduced in the industry in order to replace traditional methods in financial servicing and the financial market as a whole.
Many startups are making a name in the fintech department but leading banks such as Credit Suisse and HSBC are also trying to create their own innovations. These fintech companies are known to employ technology that will serve more complicated software applications like big data and AI.
There are many disruptive innovations in the financial market. These are newly developed technologies that changed the markets way of operation in a major way. When a disruptive technology is changing the financial market, the institutions within the industry have no choice but to adapt to this new technology and think of new approach to use.
These fintech must be able to comply with regtech or regulatory technology. These are technologies used in order to make sure that the companies developing fintech are actually following the rules based on the financial market compliance. The first priority of regtech is to monitor money laundering therefore it has developed an automated and digitized way to do so. Another is the KYC or know your customer to prevent identity fraud among clients. These technologies are already used by financial advisors including www.plenty.com.au which is a website dedicated in providing financial advice and planning to consumers.