There has been an explosion in the number of financial technology startups which are called fintechs. These companies aim to either:
Revamp the processes or business lines in traditional financial services
Disrupt the financial services with the emergence of alternative finance: non-bank, non-insurance, online companies through combination of innovative business models and cutting edge technologies
To some estimates, there are around 12K startups globally challenging their competitors whereas a dozen of fintechs have surpassed the market value of $1B (so called unicorns).
Fintechs have raised substantial financing from a variety of sources as the interest of venture and private equity investors is shifting towards added-value technology businesses. There are venture capital firms focusing only on fintech opportunities.
NY and London have resonated well on the success of financial startups based on the size of financial industries. Singapore, Hong Kong and Australia are becoming other candidates to follow the frontrunners.