What Is a Fintech Company — and Why Should You Invest in This Industry?

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Sitting at his desk before class, a college student uses an online brokerage app to purchase a few shares of stock he learned about in the school’s finance club. At the front of the classroom, his professor uses a banking app to deposit her paycheck. While heading down the hallway to the lecture, one student uses their phone to transfer money to another to cover the cost of last night’s pizza and beer. What do all these folks have in common? Aside from their presence at the university, all these people are utilizing fintech — a growing industry that’s changing the finance world as we know it.

The fintech — a combination of the words “finance” and “technology” — industry may be shaking things up, and many investors are keen to find out how its innovations can improve our lives. But others aren’t so sure that this emerging industry is a smart investment. Here’s what you need to know about fintech — along with what the experts are saying about its investment potential.