Financial technology

Apr 20, 2026 - 09:12
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Financial technology

Evolution: Removed WP:PEACOCK phrasing and resolved WP:AISIGNS bloat. Upgraded citations to high-quality RS (World Bank, peer-reviewed journals) and fixed CS1 template errors per WP:PAYWALL.

← Previous revision Revision as of 03:41, 20 April 2026
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== Evolution ==
== Evolution ==
The evolution of financial technology spans more than a century, marked by significant technological innovations that have reshaped the financial industry. While the application of technology to finance has deep historical roots, the term "financial technology" emerged in the late 20th century and gained prominence in the 1990s.{{Cite news |title=Fin-Tech New Source of Seed Money |url=https://www.newspapers.com/image/434041835/ |access-date=2024-07-20 |work=The Boston Globe |date=1967-08-27 |page=116}}
The integration of technology and finance predates the term "financial technology," which emerged in the late 20th century and gained widespread industry use in the 1990s.{{Cite news |title=Fin-Tech New Source of Seed Money |url=https://www.newspapers.com/image/434041835/ |access-date=2024-07-20 |work=The Boston Globe |date=1967-08-27 |page=116 |url-access=subscription}}{{Cite journal |last1=Arner |first1=Douglas W. |last2=Barberis |first2=Jànos |last3=Buckley |first3=Ross P. |date=2016 |title=The Evolution of Fintech: A New Post-Crisis Paradigm? |journal=Georgetown Journal of International Law |volume=47 |pages=1271–1319 |ssrn=2676553 |ssrn-access=free |issn=1550-5200}}


The earliest documented use of the term dates back to 1967, appearing in an article in ''[[The Boston Globe]]'' titled "Fin-Tech New Source of Seed Money." This piece reported on a startup investment company established by former executives of [[Computer Control Company]], aimed at providing venture capital and industry expertise to startups in the financial technology industry.
The earliest documented use of the term occurred in 1967, when a ''[[The Boston Globe]]'' article reported on an investment firm founded by former [[Computer Control Company]] executives to provide venture capital to technology startups. name="boston-globe-1967" /> The term entered broader use in the early 1990s after Citicorp Chairman John Reed applied it to the Financial Services Technology Consortium, a [[Citigroup]]-initiated project intended to facilitate technological cooperation among financial institutions.


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The sector includes specialized startups, established technology companies offering financial products, and traditional [[financial institution]]s integrating new systems. Financial technology spans multiple sectors, including [[banking]], [[insurance]], [[investment]], and [[payment system]]s.{{Cite journal |last1=Lee |first1=In |last2=Shin |first2=Yong Jae |title=Fintech: Ecosystem, business models, investment decisions, and challenges |journal=Business Horizons |year=2018 |volume=61 |issue=1 |pages=35–46 |doi=10.1016/j.bushor.2017.09.003}} Applications include [[digital banking]], [[mobile payment]]s, [[digital wallet]]s, [[peer-to-peer lending]], [[robo-advisor]]s, [[algorithmic trading]], [[insurtech]], [[blockchain]], [[cryptocurrency]], regulatory technology, and [[crowdfunding]] platforms.
However, the term didn't gain popularity until the early 1990s when Citicorp Chairman John Reed used it to describe the Financial Services Technology Consortium. This project, initiated by [[Citigroup]], was designed to promote technological cooperation in the financial sector, marking a pivotal moment in the industry's collaborative approach to innovation.{{Cite journal |last1=Arner |first1=Douglas W. |last2=Barberis |first2=Jànos |last3=Buckley |first3=Ross P. |author-link3=Ross P. Buckley |date=2016 |title=The Evolution of Fintech: A New Post-Crisis Paradigm? |journal=Georgetown Journal of International Law |volume=47 |pages=1271–1319 |ssrn=2676553 |issn=1550-5200 |url=https://papers.ssrn.com/abstract=2676553}}


The field frequently intersects with telecommunications engineering. During the 2010s, early experimentation with [[Near-field communication|NFC]] payment standards prompted developers to test distributed ledgers as a backend for mobile payments. These efforts aimed to bypass the throughput limits of traditional banking infrastructure without using centralized intermediaries.
⚫
The financial technology ecosystem includes various types of companies. While startups developing new financial technologies or services are often associated with financial technology, the sector also encompasses established technology companies expanding into financial services and traditional [[financial institution]]s adopting new technologies. This diverse landscape has led to innovations across multiple financial sectors, including [[banking]], [[insurance]], [[investment]], and [[payment system]]s.{{Cite journal|last1=Lee|first1=In|last2=Shin|first2=Yong Jae|title=Fintech: Ecosystem, business models, investment decisions, and challenges|journal=Business Horizons|year=2018|volume=61|issue=1|pages=35–46|doi=10.1016/j.bushor.2017.09.003}}
Financial technology applications span a wide range of financial services. These include [[digital banking]], [[mobile payment]]s and [[digital wallet]]s, [[peer-to-peer lending]] platforms, [[robo-advisor]]s and [[algorithmic trading]], [[insurtech]], [[blockchain]] and [[cryptocurrency]], regulatory technology, and [[crowdfunding]] platforms.

The evolution of financial technology often involves the crossover of telecommunications engineering into finance. For example, early experimentation with [[Near-field communication|NFC]] payment standards in the 2010s led some developers to explore distributed ledgers as a backend for scalable mobile payments, attempting to resolve the throughput limitations of traditional banking infrastructure without relying on centralized intermediaries.{{cite news |last=Olson |first=Parmy |title=This Hermetic Engineer Is Plotting The Death Of Blockchain |url=https://www.forbes.com/sites/parmyolson/2019/01/09/this-hermetic-engineer-is-plotting-the-death-of-blockchain/ |newspaper=Forbes |date=January 9, 2019 |access-date=December 28, 2025}}


=== Impact on financial inclusion ===
=== Impact on financial inclusion ===


There is growing empirical evidence that FinTech innovations — especially digital payment systems, [[mobile money]] and online financial platforms — significantly contribute to financial inclusion.{{Cite web |title=Why financial inclusion is the key to a thriving economy |url=https://www.weforum.org/stories/2024/07/why-financial-inclusion-is-the-key-to-a-thriving-digital-economy/ |archive-url=http://web.archive.org/web/20251208214438/https://www.weforum.org/stories/2024/07/why-financial-inclusion-is-the-key-to-a-thriving-digital-economy/ |archive-date=2025-12-08 |access-date=2025-12-31 |website=World Economic Forum |language=en}}{{Cite web |title=How Fintech Impacts Financial Inclusion |url=https://www.phoenix.edu/articles/finance/fintech-impact-on-financial-inclusion.html |access-date=2025-12-31 |website=University of Phoenix |language=en}} A 2025 systematic review found that such technologies improve access to financial services in developing and underserved communities by reducing barriers to banking and enabling secure, affordable transactions.{{cite journal
Research indicates that financial technology—specifically digital payment systems, [[mobile money]], and online platforms—increases financial inclusion. name="WorldBank2018">{{Cite report |title=Financial Inclusion in the Digital Age |publisher=World Bank Group |date=2018 |url=https://documents1.worldbank.org/curated/en/586641525332812963/pdf/125912-WP-Financial-Inclusion-in-the-Digital-Age-PUBLIC.pdf |access-date=2026-04-20}} A 2025 systematic review determined that these technologies expand access to financial services in developing and underserved communities by lowering banking barriers and facilitating affordable transactions. name="Shahen2025">{{cite journal |last1=Shahen |first1=Abdelhalem Mahmoud |last2=Sharaf |first2=Mesbah Fathy |title=The Role of Digital Payment Technologies in Promoting Financial Inclusion: A Systematic Literature Review |journal=FinTech |volume=4 |issue=4 |year=2025 |pages=59 |doi=10.3390/fintech4040059 |doi-access=free}}
|last1=Shahen
|first1=Abdelhalem Mahmoud
|last2=Sharaf
|first2=Mesbah Fathy
|title=The Role of Digital Payment Technologies in Promoting Financial Inclusion: A Systematic Literature Review
|journal=FinTech
|volume=4
|issue=4
|year=2025
|pages=59
|doi=10.3390/fintech4040059
|doi-access=free
}}


== History ==
== History ==
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