The world is experiencing a profound shift in how banking and financial services are delivered, catalyzed by financial technology advancement. While many people associate fintech with cutting-edge new concepts like blockchain and algorithm trading, the term actually encompasses a wide variety of more traditional-looking finance-related technology use cases.
Some academics have even broken down the evolution of fintech into different eras. The first, beginning in 1967 with the installation of the first ATM and continuing through to the 2008 financial crisis, was characterized by the digitalization of finances. In addition to the first digital stock exchanges, NASDAQ and SWIFT (Society for Worldwide Interbank Financial Telecommunication), this era also saw the birth of bank mainframe computers and online banking. It was in this era that PayPal was launched in 1998, hinting at the movement towards online payment systems.
The second era of fintech began in 2009 with the introduction of bitcoin and other cryptocurrencies. This era was characterized by the proliferation of fintech start-ups and their desire to disrupt the banking sector. This era also witnessed the growth of peer-to-peer lending platforms, which bypass banks and offer a more streamlined and often cost-effective alternative. Many of these innovations have proven especially impactful in emerging markets, where traditional financial institutions may be less accessible. In addition to enabling consumers to obtain loans they might otherwise not have been able to secure, these platforms also help reduce credit bubbles and promote financial inclusion. https://greyjournal.net/hustle/work-tech/navigating-the-new-challenges-for-fintech-startups-in-a-changing-economic-landscape/