Emerging financial technology (FINTECH) in the banking industry: threats and opportunities

Abstract

The way financial services are accessed and provided has been completely transformed by financial technology, or FinTech, which has become a disruptive force in the financial industry. Financial technology, or FinTech, has become incredibly popular in recent years. The term "financial technology" (FinTech) refers to a broad category of financial services that use rapid advancements in technology. These services include clearing, settlement, and payments, followed by credit, deposit, and capital-raising services. The purpose of this study is to create a thorough understanding of the opportunities and threats associated with financial technology, or FinTech, for the banking industry. The researcher identifies the opportunities and threats related to financial technology in the banking industry by analyzing the existing literature, empirical data, and theoretical concepts of national and international researchers that represent different approaches to financial technology. Financial technology presents several advantages for the banking industry, chief among them being lower costs and more comfortable service delivery when compared to traditional methods. Among the benefits of financial technology are its increased accessibility and increased competitiveness. Financial losses and a reduction in public confidence in the financial system pose the biggest risks to financial : technology. Because of service consumers' low level of financial literacy, which causes them to undervalue risks and make poor financial decisions, it was found that these challenges had emerged. This study focused on financial technology (FinTech) in the banking industry to provide a conceptual identification of FinTech and its positive and negative effects on the industry. For this, published articles examined the development of financial technology.