Fintech

Fintech is short-hand for financial technology.

It describes technology innovations, developments, and advances taking place in the financial services sector.

Fintech isn’t only about cryptocurrencies and Bitcoin. They’re a small but growing segment within Fintech.

Fintech also includes many segments from the traditional finance world, including but not limited by:

trading,
lending,
borrowing,
mortgages,
venture funding,
banking

Some examples of Fintech innovations include mobile banking, blockchain technology, investment apps, small ticket loans, digital insurance, crypto apps, Robo-advisers, and peer-to-peer (P2P) lending apps.

Fintech startup funding exploded in 2021, with global fintech investments hitting a record $132 billion, more than double the $49 billion the sector saw in 2020.

Online lending and cryptocurrencies were standout performers in 2021, seeing major funding.

The U.S. leads the world in fintech funding, reaching $63 billion in 2021, up 171%.

Related Terms

Peer-to-Peer (P2P)

Describes the sharing of data or assets between 2 or more parties without any central authority making the transaction happen. P2P exchanges tend to offer transactions that are censorship resistant, cheap, private, and secure.

Ethereum (ETH)

Ethereum is a decentralized blockchain platform that makes digital money, global payments, and applications possible using open-source software and smart contract functionality. The big difference between the two is that Ethereum is programmable, meaning you can build and use decentralized apps on the network. That means the Ethereum blockchain can be programmed to do virtually anything.

Bubble

Describes an asset, or entire market, significantly appreciating in price, at an inflated level, and not reflecting the asset’s or market’s real value here on Earth. “The bubble” bursts, sending those inflated prices that can’t be sustained crashing down hard.

Sam Bankman-Fried (SBF)

At one point one of the richest people in crypto, Sam Bankman-Fried and cryptocurrency exchange FTX have come crashing down to earth in a matter of days following reporting that his Alameda Research hedge fund was undercapitalized and he allegedly took customer funds out of FTX illegally and funneled them to Alameda Research.

Dogecoin (DOGE)

The most famous meme coin around, an altcoin that was started in 2013 as a joke that’s represented by a Shiba Inu dog