Financial technology (abbreviated as fintech) refers to the application of innovative technologies to products and services in the financial industry. This broad term encompasses a wide array of technological advancements in financial services, including mobile banking, online lending platforms, digital payment systems, robo-advisors, and blockchain-based applications such as cryptocurrencies. Financial technology companies include both startups and established technology and financial firms that aim to improve, complement, or replace traditional financial services.

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.

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.

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.

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 institutions adopting new technologies. This diverse landscape has led to innovations across multiple financial sectors, including banking, insurance, investment, and payment systems. Financial technology applications span a wide range of financial services. These include digital banking, mobile payments and digital wallets, peer-to-peer lending platforms, robo-advisors and algorithmic trading, insurtech, blockchain and cryptocurrency, regulatory technology, and crowdfunding platforms.

The late 19th century laid the groundwork for early financial technology with the development of the telegraph and transatlantic cable systems. These innovations transformed the transmission of financial information across borders, enabling faster and more efficient communication between financial institutions. A significant milestone in electronic money movement came with the establishment of the Fedwire Funds Service by the Federal Reserve Banks in 1918. This early electronic funds transfer system used telegraph lines to facilitate secure transfers between member banks, marking one of the first instances of electronic money movement.

The 1950s ushered in a new era of consumer financial services. Diners Club International introduced the first universal credit card in 1950, a pivotal moment that would reshape consumer spending and credit. This innovation paved the way for the launch of American Express cards in 1958 and the BankAmericard (later Visa) in 1959, further expanding the credit card industry.

The 1960s and 1970s marked the beginning of the shift from analog to digital finance, with several groundbreaking developments shaping the future of financial technology.