Financial technology — better known as fintech — came on the scene as a disrupter about a decade ago. The concept, focused on technology that improves and automates delivery and usage of financial services, is moving from its role as industry disrupter to industry mainstream services.

A recent report from Business Insider pointed out that fintech is “increasingly growing embedded in mainstream finance,” and is becoming an important part of the financial system.

Here are some more takeaways from the report:

• Fintech funding was at $32.6 billion worldwide at the end of Q3 2018.

• Some fintech subsegments are adjusting their business models; such subsegments include neobanks (banks without branches), robo-advisors (automatic asset allocation algorithms) and alt lenders (non-traditional lending sources).

• Other fintech categories — such as regtechs (technology to ensure financial compliance), insurtechs (cloud computing for the insurance industry) and payment fintechs — are finding current conditions well-suited to their original models.

• Fintech is impacting traditional banks, insurers and wealth managers by forcing them to “respond proactively in order to stay relevant,” Business Insider noted. As a result, “incumbents and fintechs are converging on a digital middle ground,” the report added.

• Before fintech becomes well-embedded in the financial industry, the sector will have to go through a complete economic/credit cycle, and survive an economic downturn.

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