Impact of Fintech and Social Media on Retail Investing: A Case Study of GameStop Controversy

Case study

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Fintech and social media to shift the dynamics of retail investing..............................................3
Use of different technology to improve the efficiency within financial markets........................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Books and Journals....................................................................................................................10

INTRODUCTION
GameStop is an American video game and electronics merchandise retailer which is
headquartered in the grapevine city of Texas. This company is one of the largest video game
retailers present all over the world. This is a trade in destination for Xbox, play station and some
other games and related systems (Pagano, Sedunov and Velthuis, 2021). There are different
controversies which has taken place after the Robinhood decided to freeze the trades for the
GameStop. The market shares of this company has started to crash down since then and has
again shoot up. This report deals with the influence of Fintech and social media on the retail
investing and all about the use of different models for payment in reference with the GameStop
controversy.
MAIN BODY
Fintech and social media to shift the dynamics of retail investing
Banking is very important however banks are not. The digital sources of financial
technology is helping in improving the lives of its users. Fintech is disrupting the banking
industry and this trend is growing and entering in all the financial sectors. The traditional
working of the banks and other financial sectors have a lot to catch up from the changes
happening in the recent years. The managers of the banks are not ready to bear the risk of
embracing the new changes and making use of new technologies in the banking sector. This
industry has come a long way and all the improvement has lead to a better banking profits but
not the customers (Barber and et.al., 2020). The use of online banking has reduced the needs and
requirements of customers to have regular visits to their respective bank branches. This process
has changed the look of using banking services and not the whole of banking model. The cost of
maintaining online banking systems are very much less than compared to the traditional
methods. Transitioning to the online platforms is a very beneficial step for banks.
Fintech offers the technology which secures the clients better than any other bank while
providing an efficient as well as suitable online strategy. Fintech was started by the financial
sector employees and were committed to finance. These finance professionals teamed up with
the information technology team to create Fintech which helped in solving problems of the
people rather than banking problems. During the time of economic crisis, the trust people had in
the banks was damage as every individual was keen to save and manage their money. This