What does 'fintech' refer to?

The term 'fintech' is a portmanteau of 'financial technology' and encompasses the innovative use of technology in the financial services industry. This includes a wide range of applications such as online banking, mobile payment apps, peer-to-peer lending platforms, robo-advisors, and cryptocurrency. The core idea of fintech is to enhance and streamline financial processes, making them more accessible, efficient, and user-friendly.

The correct answer highlights this focus on improving financial services through technology, which is essential for various stakeholders including consumers, businesses, and financial institutions. Understanding fintech is crucial in today's digital economy, as it represents a significant shift in how financial services are delivered and consumed, transforming traditional models of banking and finance.