The Complete Guide to Fintech by Mati Greenspan and Sandy Fox

Chapter 1

The Fintech 
Revolution

The relationship between technology and financial 
companies is changing at a rapid pace.
Finance companies have always used technology 
in their businesses. But now the evolutions made 
possible by the internet and fintech - or financial 
technology - are changing the way people interact 
with money in their daily lives. It affects how they 
buy products, pay bills, send money, and invest. 
New and innovative start-ups offer services that 
used to be done by banks, insurance companies, 
and financial management groups.

1.1 What is Fintech?
In its broadest sense, the definition of FinTech 
(financial technology) is the use of technology 
as it applies to the financial sector. This includes 
areas such as payments, insurance, investment 
management, deposits and lending, capital raising, 
and market provisioning. Finance companies have 
always used technology to make their businesses 
faster, safer, more productive, and more global. But 
now they are disrupting the entire nature of finance.
What is a Fintech Company?
The rise of new and cutting-edge technology 
allowed small start-up companies to offer financial 
services outside of traditional banking. For the first 
time, consumers can bypass the bankers, brokers, 
and middlemen. Now, people can deal directly with 
businesses or other consumers.
For example, companies like PayPal send payments 
directly to merchants or between people. And 
peer-to-peer lending companies like Upstart 
brings borrowers and lenders together. Bitcoin 
and other cryptocurrencies store money digitally, 

simplifying international payments and bypassing 
governments as well as financial institutions. These 
are just a few examples how fintech leaves banks 
out of the equation.
Recently, the term fintech has expanded beyond 
financing, or areas like peer-to-peer lending, and 
now covers any service or product the financial 
sector once did.

The Complete Guide to Fintech by Mati Greenspan and Sandy Fox