Fintech

What Does Fintech Mean?

The term “fintech,” sometimes capitalized “Fintech” or “FinTech,” is a general comprehensive term for financial technologies, many of which are rapidly changing the financial industry. As a portmanteau of the words “finance” and “technology,” fintech is often used by technology journalists and others to describe technologies as diverse as cryptocurrency tools, financial transaction platforms and industry-specific middleware programs.

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Techopedia Explains Fintech

One example of fintech is the blockchain ledger technology tied to cryptocurrencies like bitcoin. As an alternative to traditional accounting, blockchain provides a ledger that is set in stone and cannot be falsified in particular ways that have traditionally driven embezzlement and corruption.

Many other kinds of fintech are widely used in today’s finance world. Some are geared toward helping companies achieve compliance with standards like Basel and Sarbanes-Oxley, while others accommodate the routine digital work involved in common banking and financial tasks. New online banking models could be described as fintech, as could the evolution of platforms to handle cyber security for finance data. All of these are examples of a new class of technology that is aimed at enhancing our collective commerce systems.

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Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.