Fintech, financial technology, uses software and develops technology to provide all types of financial services, revolutionising the traditional ways of banking, insurance and investing.
Fintech has been one of the fastest growing sectors in recent years, driven by people increasingly using digital methods to access and manage finances, with the increase of digitalisation particularly visible in emerging economies. Two of its subcategories showing massive growth are app development and AI. 
However, the fintech sector does face some challenges, also in comparison to traditional financial services.
Areas of growth
Fintech app development
Fintech apps offer many financial services including financial analysis, payment methods, investing, lending, banking, insurance and more. They simplify and make financial processes more accessible for the customer. Automation, data analytics and personalisation through the development of Artificial Intelligence is a key driver for customers to use such apps. 
AI in fintech
The application of Artificial Intelligence to the financial sector is increasing efficiency by learning and copying Human Intelligence but applying it on a scale beyond human capacity. AI which detects and avoids fraudulence is likely to be increasingly employed as security concerns are the major block to Fintech’s growth. 
Fintech vs traditional banking
Fintech companies, by their technological nature, are more able to innovate and adapt to markets which change quickly depending on customer preferences. For example, as crypto currencies become more popular Fintechs can hold crypto quickly, whilst it takes a lot longer for traditional banks to introduce crypto holdings. Where fintech companies struggle compared to banks is that they lack some of the structures, such as those which banks use to provide customer funds for deposits and lending. 
The pandemic has caused a reduction in seed and angel funding, with these sources constituting 37% of Fintech deal activity in 2020 in comparison to 42% in 2019. This is because the current economic instability is encouraging investors to invest in more mature and established fintechs over early-stage companies. However, at the same time private securities marketplaces offer a new opportunity for smaller companies to raise capital. Through such marketplaces unlisted firms can find a wide range of investors, allow their employees to trade their own equity holdings and sell dual-class shares (allowing CEOs and founders to retain majority voting rights whilst selling shares). Hopefully, this opportunity may counteract some of the funding difficulties that smaller companies are facing in today’s economic climate.
 Article: ‘FinTech Investment Market Next Big Thing | Major Giants ZhongAn, Wealthfront, Funding Circle’
 Article: ‘Fintech app development Market to see Huge Growth by 2025 | KindGeek, Praxent, Waracle’
 Article: ‘AI in Fintech Market Will Hit Big Revenues In Future | Salesforce.com, Intel, IPsoft’
 Article: ‘A Fintech Expert Has Advice on Valuing IPOs’
Source: The Motley Fool
 Article: ‘Top 2020 Fintech Mega Funding Rounds (US$100M Deals)’
Source: Fintech News Switzerland
 Article: ‘GlobalData : Transformation of stock exchanges will be a boon for fintech’