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Build vs. Buy Fintech Software: A Guide to Choosing the Best Approach for Your Product
Ketharaman Swaminathan

Ketharaman Swaminathan

  TY Yuri Kropelnytsky. Fintech: I'm going by the definition given in Why Banks Will Never Catch Up With Fintechs (Disclosure: I'm the author!). It resonates strongly with the Wikipedia description of the term:  "Fintech refers to firms using new technology to compete with traditional financial methods in the delivery of financial services." Spend Management Software: This description by Gartner does not say financial technology software. There's a list of leading vendors on that page. I've not heard anyone call them fintechs. ----- As I said, this is the classical definition at inception. Over time, the bank-disruption posturing of fintechs flopped. The industry started chanting the bank-partnership mantra. As a result, the scope of fintech - and, along with that, of financial technology software category - gradually expanded over time. Which is fine by me, as long as we know which version of "fintech" and "financial technology software" we're talking about - because there are huge differences in business model, TAM, and valuations depending on the specific definition used.  Not to muddy the waters but there's also BaaS, Embedded Finance, etc. now!
Build vs. Buy Fintech Software: A Guide to Choosing the Best Approach for Your Product
Yuri Kropelnytsky

Yuri Kropelnytsky

  Hello Ketharaman, thank you for reading and for your question. In reality, the classical definition of fintech is not limited to simply companies that compete with traditional banks, but many other financial services. And yes, this does include spend management (the example you stated). In our industry, we use the term 'fintech software' as an overarching category to describe all sorts of systems, including, but not limited to: payment apps, prepaid card apps, banking apps, remittance apps, money transfer apps, payment gateways, accounting & expense management systems, mobile wallets, lending apps, blockchain & cryptocurrency, compliance technology, and so on. There are many reputable sources citing this broader definition of fintech and the types of examples I stated, including Columbia.edu, Forbes Advisor, and CFA Institute. Would you please tell me your source that suggests corporate spending software is not considered financial technology software?