Michigan State University

What is FinTech?

Benjamin Hall

According to PwC, "Financial technology—FinTech for short— describes the evolving intersection of financial services and technology. The term can refer to startups, technology companies, or even legacy providers."

FinTech helps companies manage financial operations and processes. The term has become synonymous with all things finance; however, FinTech market segments generally encompass:

digital payments (Ex. PayPal; Google Wallet) 

alternative financing (Ex. Kickstarter; Indiegogo) 

alternative lending (Ex. LendingClub; Prosper)

personal finance (Ex. Betterment; Wealthfront)

Together, these FinTech segments make up a billion dollar industry that is almost entirely dominated by startups. 

While Blockchain hogs the spotlight, FinTech continues to grow. Ever heard of Credit Karma or Nerdwallet? According to last week's CB Insights brief, "Since 2017, some 250 private companies have raised $31.85B...[in investment funding for FinTech]." Check out CB Insights for more on the 'Future of FinTech' and 'The FinTech 250'.

For more industry insights, contact a business librarian today.

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