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FinTech, also known as financial technology, has revolutionized banking and modern finance. The definition of FinTech includes all innovative technologies that are used to improve and automate financial transactions. These include simple applications for mobile payments, as well as more complex technologies such as cryptocurrencies or blockchain.

In this article, the current financial technology market overview and the so-called ABCD of FinTech will be discussed.

Table of Contents:

1. FinTech industry overview.

2. ABCD in FinTech.

2.1. Artificial Intelligence.

2.2. Blockchain.

2.3. Cloud Computing.

2.4. Data.

3. Conclusion.

3.1. Explore FinTech solutions developed by Railwaymen.

Fintech Industry Overview

After a deep dive into the financial technology industry, based on the Global FinTech Market Report it can be said that the FinTech sector is currently booming.

As we move into 2023, the total number of FinTech companies is over 30,000 and still growing. According to the above-mentioned report, he FinTech industry is estimated to reach a size of around $305 billion with an average annual growth rate of about 20% by 2025.

One of the driving factors for the development of financial technology is that many traditional banks are supporters of these innovations, and they try to implement them by actively investing, acquiring or collaborating with many fintech companies.

This allows established banking institutions to offer digitally savvy customers what they want, while moving the industry forward and staying up-to-date.

Financial services in FinTech indusrty

ABCD in FinTech

The term ABDC in FinTEch actually corresponds to four integral technologies that have contributed to the creation and implementation of most technologies in the financial technology industry. The acronym ABCD stands for: A - Artificial Intelligence, B - Blockchain, C- Cloud Computing and D - Data, and it's associated with most offered FinTech services.

New alternative finance method

#Artificial Intelligence

Artificial intelligence is known as a field of computer science that aims to facilitate the design and development of computers that can perform activities that are the domain of humans and, in particular, that require intelligence. Its concept was first used by John McCarthy in 1956 during a conference in Dartmouth devoted to technology.

Nowadays, AI is understood as the ability of machines to exhibit human skills such as reasoning, learning, planning, and creativity, while allowing technical systems to perceive their environment and solve problems, working towards a specific goal. There are various aspects of AI, including natural language processing (NLP), which refers to language, often written, and machine learning.

The underlying technology in financial sector

2017 was a breakthrough year when it comes to the development of Artificial Intelligence. The interest in AI has skyrocketed, many of its applications have taken place in the FinTech industry - these events led Fortune and Forbes to declare 2017 the year of Artificial Intelligence.

AI undoubtedly has an impact on changing the alternative finance user interfaces - from facial and voice recognition to biometric identity management to chatbots, whose main task is to offer personalized recommendations regarding customer needs. It is also allowing some financial firms to create new business models focused on analyzing customer data rather than building platforms to provide financial fund flow.


Blockchain is otherwise a distributed database or general ledger that is shared by computer network nodes.

Blockchain as a database stores all electronic data in digital form. It plays a key role in cryptocurrency systems (such as Bitcoin or Ethereum) in maintaining a secure and decentralized transaction ledger. This innovative technology will ensure fidelity and security of data recording.

An important purpose of blockchain is to enable the recording and dissemination of digital information, excluding its editing. Thanks to this, blockchain is recognized as the basis for immutable ledgers or transaction records, i.e. distributed ledger technologies (DLT).

Cryptocurrencies are now recognized as one of the most recognizable developments in the financial technology sector. It is a new digital asset that has emerged as a viable alternative funding source for both individuals and businesses. Cryptocurrencies are now a new online capital market that is revolutionizing transaction processes across multiple industries.

Rapid growth of financial teh

#Cloud Computing

The name cloud computing comes from the fact that the information being accessed is located remotely in a cloud or virtual space. Thanks to the cloud, it is possible to access all data, files and applications that are stored in the cloud on remote servers - it means that the user does not need to be in a specific place to access it.

Cloud computing has also contributed to the development of new business models - for example, software as a service (SaaS).

It replaces the traditional model of developing and selling software by vendors, but requires a software license. Software that is in the cloud can be sold at a lower initial cost, for example, based on a subscription model.

This means that initial operating costs are lower, so it is especially important to prototype new business models and user interfaces to implement them faster and more efficiently.


Business Model in Cloud Computing


Banks and financial institutions for a long time generated large amounts of information about customers and mainly based on it.

Most of the data was collected through paper forms or surveys filled out by customers and employees. Such documentation was problematic to search or manipulate for analysis.

The digitization of paper data and documents allows for easier storage, transmission, searching, processing, analyzing, and displaying of information, facilitating online banking and allowing to better manage customer information. Data Storage cost continues to fall, while data is being collected at a relatively fast pace through online activity and connected devices. It also allows for gathering structured as well as the unstructured data.

In the FinTech industry, a special impact has Big Data because it helps in organizing massive amounts of data and transforming it into actionable insights. These Big Data insights can then be used by FinTech companies to drive market forecasts, design future strategies, and even personalize and meet customer expectations, among other advantages.


Data storage cost



Blockchain, Big Data, Cloud Computing, and Artificial Intelligence, undoubtedly, have an impact on the development and growth of alternative finance and are the driving force behind FinTech.

Nowadays, innovation is one of the key features that enterprises should have because thanks to it, the public or private companies can survive on the market and have the opportunity to develop.

Explore FinTech solutions developed by Railwaymen.

If you are curious and want to learn about financial technology solutions used in practice, check out our Case Studies section on our website!

There you will find many stories of the development of our applications and the course of each project from the first meeting with the client.

This is a massive dose of information that will help you open up to the world of finance and understand its dependencies. Maybe you'll even get inspired to create some apps, who knows? :)