The Evolution of Fintech & Its Rise

The Evolution of Fintech

Fintech or financial technology is the use of technology by the finance sector observed Bahaa Abdul Hussein. Fintech has been growing fast and over the past few years has since exponential growth. There is no doubt that fintech is the future with virtually all finance companies using technology. Fintech startup companies are growing fast indicating its acceptance in the industry.

Evolution of fintech

It is interesting to know how fintech evolved over the times. Here is an overview of the evolution of fintech from the ancient times until today.

Most people trace the origin of fintech to the 1970s. That was when computers began to be used in banking. It was the 1990s when fintech really took off with electronic banking and online trading becoming very popular. It is interesting to note that a research paper traces the history of fintech to 1886.

Yes! According to Arneris, Barberis, and Ross fintech evolved in 1866 when the transatlantic cable was laid. That laid the foundation for wire transfer, which began in 1918. The first ATM was installed by Barclays Bank in 1967. It can be considered a landmark stage in fintech’s evolution.

The following explains how fintech evolved:

  1. Fedwire in 1918 ensured wire transfer could be done and this was the first use of technology.
  2. The setting up of NASDAQ in the 1970s ensured stock market trading could be done online.
  3. It was the 1990s when digital banking became popular. The growth of the internet helped accelerate online banking.
  4. The period from 2005 onwards saw the growth of mobile banking. The popularity of smartphones made it easy to offer financial services through mobile apps.
  5. The 2020s saw the growth of robo advisors that used AI to advise customers. Peer-to-peer lending and mobile payments were other trends that took off.
  6. Today technology is used everywhere. From insurance to banking, and stock trading to lending fintech is everywhere. The growth of fintech was helped by a large number of new companies offering innovative services in related areas.


Fintech evolved during the 1970s when the use of computers became prevalent. It was during the 90s and 2000s when it took off. Today technology has become common place. Banks and other financial institutions extensively use technology for their operations. Fintech has enhanced customer convenience and helped financial companies operate efficiently. The future is bright and AI will take fintech to new directions in the next few years.

The article has been authored by Bahaa Abdul Hussein and has been published by the editorial board of Fintek Diary. For more information, please visit

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