Fintech M&A

09 October 2017

The term Fintech combines the words “financial services” and “technology”. Fintech companies are commonly understood to be young, technology-based undertakings that provide specialised and customer-oriented financial services. Given the technology-driven background of Fintech companies, they promote the trend towards digitalisation and customisation.1) Fintech in the insurance sector is also called Insurtech.

Fintech is seen as being in competition with traditional, regulated financial services providers. However, Fintechs also supplement the services that these offer. The challenge for regulators is to ensure that Fintech develops in a way that maximises the opportunities and minimises the risks for society. For example, the German BaFin has established a new unit that concentrates on innovative financial technologies.

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