The term ‘fintech’ has now become a part of the modern lexicon. The term is often used to describe tech startups that are presumably going to upend traditional financial institutions ( ie. banks ) through the use of new technology. Such a characterization, however, misses a large amount of what is truly transforming the financial services ecosystem.

From PayPal Government relations, in a new white paper entitled “Fintech from the Frontlines,” PayPal’s policy team seeks to demystify the term “fintech” by placing it in a historical context and providing concrete data and insights on what is really going on in the fintech ecosystem.   The piece takes a global view and outlines the benefits of fintech as well as the policy changes needed to enable the fintech ecosystem to evolve with trust.  

It includes a deep dive on payments, credit, and wealth management developments and also highlights innovations in cybersecurity, one of the hottest topics in financial services.  The piece is a thought starter and is not intended to be a definitive authority.  Instead, it serves to spark a conversation on what can be done to facilitate the positive aspects of fintech like increased access and enhanced security.