From Fintech to Financial Technology

From Fintech to Financial Technology: The Growing Importance of Technology in the Future of Finance

The evolution of fintech has been nothing short of extraordinary. The story of fintech today is a paradox: while its early disruptions may feel like yesterday’s news, the innovation and transformative power at its core have matured and accelerated, driving the future of finance into new, uncharted territories.

A Decade of Transformation

A decade ago, “fintech” was synonymous with bold startups disrupting the financial services sector. Companies like Revolut and TransferWise (now Wise) heralded an era of digital payments, peer-to-peer lending, and alternative credit scoring systems. Their mission was ambitious: to bypass traditional banks, democratize financial services, and improve accessibility for all.

Fueled by low-interest rates, a post-crisis regulatory environment, and abundant venture capital, the fintech wave surged forward. Startups positioned themselves as outsiders capable of reshaping finance with sleek apps and user-centric models. However, many soon realized that disruption required more than innovation—it demanded robust infrastructure, deep financial expertise, and customer trust. These lessons were hard-earned, as less than 20% of digital banks worldwide were profitable by the end of last year.

What began as a rebellion against traditional finance has evolved into collaboration and integration. The term “fintech” now encompasses the entire financial system’s application of technology (i.e. financial technology) — from mobile platforms to AI, blockchain, and even quantum computing.

From Novelty to Necessity

The fintech landscape today is increasingly defined by partnership rather than rivalry (although rivalry exists and long may it continue as that very rivalry has been a key catalyst of change among incumbents who were practically 'forced' by their customers to evolve). The relationship between the fintechs of today and traditional banks (and FIs) has shifted from competition to “co-opetition.” Many fintech pioneers have matured into established players, collaborating with financial and non-financial institutions to create hybrid ecosystems. Embedded finance exemplifies this trend, as financial services are seamlessly integrated into non-FIs platforms like Shopify and Uber.

The result? A financial world where fintech is less visible but more integral than ever.

What was once groundbreaking—like mobile payments and AI-driven lending—is now anticipated and increasingly expected. Fintech has moved from being a disruptor to becoming the foundational infrastructure of modern finance (or as we all like to call it now - the future of finance)

The Role of Techfins

A major force accelerating fintech’s evolution has been the rise of “techfins”—technology giants like Amazon, Apple, Google, and Alibaba entering the financial services space. These companies leverage vast user bases, cutting-edge technology, and troves of data to deliver integrated financial solutions. For example, Alibaba’s Ant Group revolutionized payments and lending in China, setting new standards for scale and customer experience. Apple has been playing its on part with the likes of Apple Pay and other offerings (although it came at a heavy price to Marcus by Goldman Sachs)

Techfins continue to push the boundaries of financial technology by embedding financial services into broader ecosystems and advancing emerging technologies. Their presence challenges both fintech startups and traditional institutions to innovate continuously, ensuring that financial services remain relevant, efficient, and personalized.

Long may they continue as they have played a very important and essential role in the adoption of technology (for the greater good of the consumers of the sector) and will continue to impact how the sector evolves.

Challenges in a Maturing Industry

As fintech has matured, it has encountered significant challenges. Regulatory scrutiny has intensified, with governments applying bank-like standards to fintech companies. Profitability has also proven elusive, especially for models reliant on rapid growth. The economic environment—marked by rising interest rates and reduced venture capital investment—has forced fintechs to prioritize sustainable business models.

Market saturation, heightened competition, and the need for robust cybersecurity add to the pressure. Yet, these challenges are shaping a more resilient industry, driving consolidation and innovation that will define the next phase of fintech’s journey.

The Future of Financial Technology

Looking ahead, fintech is poised to become the backbone of global financial infrastructure. Here are key trends (not exhaustive in nature) shaping its future:

• Embedded Finance: Financial services will become invisible, integrated into every facet of life, from smart devices to the metaverse.
• AI and Big Data: Artificial intelligence will drive personalized experiences, predictive analytics, and fraud detection.
• Tokenization and DeFi: Blockchain technologies will transform capital markets, enabling tokenized assets and decentralized finance.
• Super Apps: Platforms like WeChat and Kaspi.kz demonstrate the potential of fintech to anchor comprehensive digital ecosystems.
• Regulation and Privacy: As data use and AI adoption grow, ethical concerns and regulatory frameworks will demand attention.
• Sustainability: Green finance and sustainable practices will increasingly align with fintech innovations.

In 5-10 years, fintech will likely be seen as essential infrastructure rather than a standalone industry. The focus will shift from flashy startups to seamless integration, where financial technology is the foundation upon which economies operate.

A Call for Conversation

The evolution from “fintech” to “financial technology” marks a maturation of the industry. What began as a disruptor has become an enabler, deeply embedded in the fabric of global finance. This transformation reflects not an end but a new beginning—one where innovation, collaboration, and adaptability will continue to define the financial landscape.

This article is not just a narrative; it’s an invitation. The future of finance is being written collaboratively. Share your perspectives, challenge assumptions, and join the conversation. The dialogue around financial technology is as essential as the technology itself, ensuring that the next decade of innovation benefits everyone.

Let’s keep the conversation going.