Fintech, the Buzzword Finance Loves and Hates: QuickTake Q&A

You’ve heard it at conferences, in meetings and maybe even bandied about at dinner parties. Ever since a wave of financial technology startups emerged after the 2008 subprime mortgage crack-up, "fintech" has become shorthand for a digital revolution that could sweep away antiquated banking practices. But its definition has become so elastic that it’s hard to know precisely what it is, let alone what it augurs for a global financial industry in dire need of innovation. Here’s a primer.

It’s a catch-all label applied to companies using the internet, mobile phones, cloud computing and open source software to make banking and investing more efficient. It’s divided into two spheres: consumer-facing companies that offer digital tools to improve the way individuals borrow, manage money and finance startups, and back-office ventures that help financial institutions streamline their operations behind the scenes.