Impact of Fin Tech Disruption and 2008 Financial Crisis on Financial Sector

This study analyzes the impact of Fin Tech disruption and the 2008 financial crisis on the financial sector. It examines the advantages and disadvantages of Fin-tech, Crypto, Blockchain, and provides strategic recommendations for market leaders in the industry. The study also explores the opportunities and threats in the industry, and how banks can prepare for the future.

ELEMENT 2 INDIVIDUAL
PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY .............................................................................................................................3
TASK...............................................................................................................................................3
Analysing the impact of Fin Tech Disruption and influence of the 2008 Financial crisis on
similar term..................................................................................................................................3
Analysing advantages and disadvantages of Fin-tech, Crypto, Blockchain ...............................6
Opportunity .................................................................................................................................8
Threats.........................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
CONCLUSION.............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Fin-tech refers to advanced technologies and systems that enable companies, to deliver financial
services online, such as mobile payments, online banking or money transaction and even
cryptocurrency (Lee and et.al., 2021). It is also considered as integration of technology into
exciting offerings by financial service organizations, for purpose of improving their utilization
and delivery of target customers. In the recent time, technological or technical trends drive the
attention of companies in financial sector towards integrating with advanced systems. The
current assignment will explain the impact of Fin Tech disruption and influence of financial
crisis 2008 on the same concept. It will also define the advantages and drawbacks of Fin-Tech,
Blockchain and Crypto, along with considering threats and opportunities to current market
leaders in the financial market. Furthermore, the study will also clarify the strategic suggestions
on how a chosen market leader might assure or safeguard their leading position in the Fin-tech
sector.
MAIN BODY
TASK
Analysing the impact of Fin Tech Disruption and influence of the 2008 Financial crisis on
similar term.
Fin-tech distribution is considered as a massive move in the banking service that enable
management to move from traditional banking to neobanks (Medyawati, Yunanto and Hegarini,
2021). This form of bank beyond providing or offering financial services to people, may have
also support service user to invest in stocks and crypto-niche traditional financial companies are
willing to attempt. In the recent time, distribution of Fin-Tech may put positive impact on overall
financial sector, in term of empowering customers to take better charge of their banking
decisions and services, that lead to greater financial literacy more than even (Areiqat and et.al.,
2021). This form of distribution in the financial industry, may contribute to add more value for
customers, who always prefer to conduct banking activities online, instead of online, which
consumes their time and efforts as well. It may affect banking industry positively in form of
revolving appropriately by introducing or providing solutions that may bring value to target
audience.

Due to high extent of competitiveness in the business world, each and every organization
while running ventures into banking sector are facing number of challenges. It may unable to
retain existing customers and gain the attention of new, but emergence of fin-tech distribution
may support companies in current situation (Parambil and Simon, 2019). It may allow
organizations to provide online banking service to everyone, and also provide chance to manage
their financial services appropriately, without dealing with some challenges or issues that affect
their buying behaviour, which is not good for overall sector growth and success. It may affect
positively in form of retaining customers, who are able to conduct word of mouth promotion
after obtaining appropriate satisfaction, by using online payment transaction and other banking
services that they may use effectively and systematically. Along with above benefits, Fin-tech
Distribution may support organizations in the chosen sector to drive their attention for further
and current improvement in traditional financial services that millions of people may used, either
for personal or professional reasons.
Financial technology distribution may add more value in existing product and service
portfolio of banking industry, in form of creating services satisfactory (Wibowo and
Aumeboonsuke, 2020). It may affect the decision-making process of companies in form of
introducing some new and unique online features such as mobile payment gateway that give
people value and also contribute to take decision to retain with a specific fin-tech company that
exist in the UK and falls under the category of trustworthy banking organizations.
On the other hand, Fin-tech distribution may put negative impact on banking industry, in
form of increasing work pressure of manage customers complains online, which is not that easy
for anyone to do so effectively. When an organization may have their physical outlet, it may get
chance to clearly understand what people expect from them and require obtaining, which is not
possible in case of online service providing companies. This form of pressure may contribute to
increase work pressure upon individual person who are accountable to provide their financial
services to individuals online (Financial Technology (aka Fintech) and its Impact on Traditional
Banking, 2021). The main concern of individual person arise while taking pleasure of Fin-tech
distribution is related to security. In today's time, majority of population may not believe or have
faith on online transaction, because they think that this procedure encompass different issues.
Fin-tech distribution may create different types of challenges that affect negatively upon banking
and practices that has been conducted in this sector.

The utilization of technologies related to financial services may increase the risk of
security as online transaction may require those details that might steal by the others and use
inappropriately, and intentionally. Fin-Tech distribution may affect organizational practice in
adverse manner, in form of emerging needs that is important for ventures to consider in term of
updating systems that they use and associated with advanced programmes (Yahaya and Ahmad,
2019).
2008 financial crisis influence on Fin Tech disruption-
Financial crisis is defined as period of extreme stress and challenges in international
financial market that may put adverse impact on varied things, including Fin tech Distribution.
Deregulation in the banking industry is considered as primary cause of 2008 this crisis or
situation that may put negative impact on Fin-tech disruption a massive move (How the global
financial crisis gave birth to Fintech, 2022). It may lead to decrease the effectiveness of overall
sector and increasing more challenges surviving in the corporate world, where strategic planning
and their implementation is essential. Along with some consequences, it can be said that
financial crisis in 2008 may become the biggest source of Fin-tech disruption (Cai, 2018). It may
give birth to financial technology that recently individual person use in the world and take
pleasure of using mobile applications and other systems that make them capable to conduct any
banking activity easily. It is fact that when financial giant Lehman Brothers abruptly filed for
bankruptcy on 2008, 15th September, the overall financial world is shaken.
It may drive the concentration of ventures toward considering the change and adopting
them same, which in turn lead to create new breed of financial companies such as Fintechs
(Hassan, Rabbani and Ali, 2020). The financial crisis may emerge the new regulations that is
important for any fin tech company to take into their consideration, for purpose of obtaining
unpredictable advantages more than those organizations that have some outlet or physical
existence in the same sector where they may perform by using online sources. Financial crisis
2008 may trigger a string of moving change and regulations in the sector, with aim at protecting
such catastrophic event from occurring again, as it might be put negative impact on business and
their success. It may influence in form of increasing investment and driving the attention of
organizations toward using technologies that provide unstoppable benefits to ventures and other
people who are connected with that.

Analysing advantages and disadvantages of Fin-tech, Crypto, Blockchain
Fin-Tech
The financial sector has need to modify very rapidly to the speeding modifications
landscape that Fin-tech transformation have brought. No one other than the organisation, older
institution that is searching for new manner to do business. So that they do not stay behind. In
the Great Britain, Fin-tech creates gross of 6.6 billion British pounds every single year with the
approximately 1600 Fin-tech firm in the United Kingdom presently. This numbers is expected to
be multiple by the year 2030. As per the report of the last year from the Department of
international trade. Technology is always been an operator of transformation thoughts. So there
is no surprise that this changes the manner finance is dealt and experience by clients all across
the globe.
Advantages of Fin-tech
The advantages of Fin-tech is greater accessibility this also translates into the enhanced
in the banked people since anybody with the internet accessibility can start an account or go for a
loan without any hustle (Sirenko and et.al 2020,). The Fin-tech response times for the applicants
is around 10 minutes to 48 hours. Time improvement all proceeding is carried via the internet
access. It is not essential in the many cases to visit the physical outlet. Fin-tech has managed to
segment facilities, so that a full range of facilities is offered. As per the demand of both financial
services users and suppliers.
Disadvantages of Fin tech
Lack of physical branches is also a disadvantage there is a trouble in the provision of the
facilities. Since everything is to be dealt with through the email or social networks. Although in
this feature some fin-tech offers as the differentiator to utilization of the blockchain technology
to better security. Lack of regulations it is a reality that it is such a disreputable process that
authorities across the globe continue. In most cases to survey and pass this process. So the
regulations around the fin-tech in the worldwide is not perfect. There are possibilities of some
likely fraud in the lack of regulation.
Crypto currency
Crypto also known as the crypto currency. A crypto is a digital or virtual currency that is
protected by cryptography. This forms almost unachievable to pretended or multiple spend.

Many cryptocurrencies is localized system based on the blockchain technology. The dealt out
ledger implemented by different web of computers.
Advantages of Crypto
Privacy and security is always had been the important concern for crypto. The
blockchain ledger is based on the various mathematical problem, that is difficult to decode. This
makes crypto much safer than any ordinary electronic transactions. Crypto uses pseudonyms for
the better security and privacy and that is unconnected to any user, account or stored data that
can be connected to a profile (Amsyar and et.al 2020). Currency exchange is easily to be done
crypto can be purchased using several currencies such as US dollar, European euro, British
pound, Indian rupee or Japanese yen. With the aid of various crypto wallets and transaction. One
currency can be converted in the another by the trading in crypto. Across several wallets and
with the nominal transaction fees.
Disadvantages of Crypto
Data losses can result in financial losses the developers desired to form a virtually
untraceable source code, powerful hacking defences and impenetrable authentication protocols.
That will make it safer to put money on the crypto than actual cash or bank vaults. But
mistakenly any user loses the private key of their wallet then there is no way of getting it back.
The wallet will stay locked along with the number of coins into it. This will be resulted in losing
the financial loss of the user. There is no repay or cancellation policy in the crypto. If there is a
difference in between the concerning parties or if a person by mistakenly transfer funds to the
incorrect wallet address. The coins can not be recovered by the sender. This can be used by
several individual to cheat others out of their wealth. Since there is no refunds one can easily be
created for a dealing whose ware or facilities they never received.
Blockchain
Blockchain is the technology backside digital liability. It is the imperishable ledger responsible
for recording economic dealings and can be programmed to keep financial transaction and
anything else that has worth. It is a localized ledger that is dominated by a third party or financial
establishment. No technology is complete or flawless and the blockchain technology is one of
them.
Advantages of Blockchain

No third party interference no authorities or financial establishment have control of the
crypto currencies that is based on the blockchain technology. This means no authorities can
interfere with the worth of the currency(Golosova and Romanovs,2018). Blockchain technology
is an instant transaction that can be accomplished in few minutes. For instance with another bank
transaction made to an individual with other bank account. It takes 48 hours nominal. The
individual is doing a virtual transaction with crypto can complete a series of transaction.
Disadvantage of Blockchain
Applying very complex protocols to accomplish consensus and allow for scaling from
the beginning is very essential. One could not hastily implement a thought hoping to later add
brand-new characteristics and outspread the applications without redeployment of the system or
forking. Applications usually do not need third- party APIs to store and restore data. The
localized app also should not depend on other D apps. The blockchain technology cannot be
altered or changed meaning all the information on it has to be 100% perfect. For example if user
loses its private key that is used in the entrée to the blockchain. It is not possible to get way to
the network.
Opportunity
The banking sector have several opportunities in the industry and also for the clients. To
be the booming in the future. The upcoming banks of future will require embracing future
technology. They will have to stay flexible to take developing enterprise framework. Placing
clients at the centre of the very planning (Temelkov, 2018). The coming banking will look
developed and advancer than today. Ever changing demands of the customers and expectation
and the new technologies and new organisation framework. Bank will need to start placing
planning in the position now to assist them prepare for the upcoming banking of the year 2030.
Banks needs to keep in mind that clients demand and demographic changes. Only having a
banking app is not sufficient. Customer desires more and more options. Giving what public need
will require a powerful research from the banks. It will also need to divide clients to form a
custom service choice. For example if a student is opening its very first account in the bank will
differ entirely from the householder or organisation owners. Moving into the rural region is also
an excellent opportunity. The banking sector did not reach to rural region. It's a great opportunity
to have more clients.

Threats
Like any industry, the banking sector also have its threats. Data violation is one of them
offering various online options this also enhanced the risk of data violation. Public give different
internet sites such as invoicing companies like Yoyo accessibility to the bank to receive and
transfer money (Boustani,2020). If these organisations faces a violation. Then in that case it will
give accessibility to the hackers to hack the private bank accounts. Despite the fact that banks
can do nothing for the data violation on the different internet site. They can ensure that their self
sites is heavy secured against the hackers.
RECOMMENDATIONS.
 Starling is one of the biggest Fin-Tech organizations in the United Kingdom, which holds
the top position in overall industry (Top FinTech Startups & Scaleups of London to
Watch Out in 2022, 2022). It can assure and safeguard their leading position and
reputation in the market, in form of adding more value in its services and products. It can
take initiative to add another feature in application such as customer complaint box,
where customers can place their issue and make a complaint against financial services
that may not meet their needs (Da Fonseca and Veloso, 2018). In the recent time, each
and every person want to stay connected with those companies that provides them
opportunity to present their concern and show the same to management, which manager
or leaders can solve, without wasting too much time to provide the effective outcomes.
By adding this feature and providing greater experience to target market, Starling bank
can safeguard its leading position in the market and also assure that no one can take their
place.
 For the same reason, organization can take more initiative along with above one, in form
of creating or developing a strong workforce, among which each candidate is able to
provide better financial services to individual person. It can put positive impact on
business in form of increasing profitability and productivity. Furthermore, by conducting
this practice and following suggestion, Starling can make assure that its position is safe
and prevented, by the application of strategic and useful practices. With skilled and
knowledgeable candidates, bank and its management can give tough competition to other
companies or banks. It can enable them to assure success in the current and further time
period. With strong and skilled people organization can sustain for longer and also

develop plan to enter into new market where people need satisfactory online banking
services, without facing issues to transfer money or receive the same.
 Utilization of effective leadership and management styles in the organization can also
assure and safeguard leading position in banking industry, where competition level is
high and affect each fin tech company in adverse manner (Fajardo-Ortiz, Shattuck and
Hornbostel, 2020). It can affect companies and their ventures in form of driving whole
concentration toward adopting new and innovative concepts, that help to reach desire
results in form of gaining competitive benefit, increasing customer base and enlarging
size as well as scope of ventures. It can be said that effective usage of leadership &
management style in the companies can contribute to increase operational effectiveness
or efficiency, not matter how vast a company was or in which sector or market is exist.
 Along with above approaches, in order to protect or prevent leading market position in
the banking sector, Starling can take more methods as strategic suggestions into its
consideration. It can take approach to safeguard position by forming a good marketing
strategy that help to gain the attention of customers and retain existing forever, who can
support organizational growth in term of conducting word of mouth promotion.
Marketing with digital technologies is the best concept that each and every organization
adopt in the recent time, for purpose of safeguarding their leading position and assuring
to that appropriately.
 It can take approach to form the best marketing plans and tactics, that help to reach
organization into international platform, where management can gain or grab excellent
business growth chances. It can grow rapidly and effectively as well as competitively,
that is not possible for any other company to do that especially start-up. Marketing and
promotional activities can provide unpredictable advantages to chosen bank in form of
assuring management to manage or maintain their leading position in finance sector,
where sustainability and productivity or productiveness is quite important. With current
and above suggestions, organization can grow in productive and competitive manner,
which is not that easy but it can do that with utilization of useful and effective resources.
 It can use existing and new people and train them to develop new skills that they used to
maintain the position in market and keep it growing rapidly that support to obtain desire
outcomes in form of aim and objective achievements.

CONCLUSION
On the basis of above discussion, it has been concluded that fin-tech disruption has
provided individual financial companies a greater opportunities, as it has enabled them to reach
desire outcomes and obtain competitive benefits in varied terms. It has been identified from
above study, that financial market leaders has taken pleasure of enhancing customer base and
their satisfaction level, by using advanced technologies that helped to provide online banking
service to individual person. Furthermore, by summing up above analysis, it has been
summarized that by grabbing current market growth opportunities, organization has drives its
attention toward development of further aim achievements. The strategic recommendations and
suggestions has assured the leading position of bank that enabled to form more plans in the
context of further success and venture progress in the competitive business world. Fin-tech,
Blockchain and crypto, accessibility has enabled financial sectors companies to focus on further
success, with wide customer base.

REFERENCES
Books and journals.
Amsyar, I. and et.al 2020. The Challenge of Cryptocurrency in the Era of the Digital
Revolution: A Review of Systematic Literature.Aptisi Transactions on
Technopreneurship (ATT).2(2). pp.153-159.
Areiqat, A. Y and et.al., 2021. ARTIFICIAL INTELLIGENCE AND ITS DRASTIC IMPACT
ON E-COMMERCE PROGRESS. Academy of Strategic Management Journal. 20.
pp.1-11.
Boustani, N.M., 2020. Traditional Banks and Fintech: Survival, Future and Threats. InICT
for an Inclusive World(pp. 345-359). Springer, Cham.
Cai, C. W., 2018. Disruption of financial intermediation by FinTech: a review on crowdfunding
and blockchain. Accounting & Finance. 58(4). pp.965-992.
Da Fonseca, R. S. and Veloso, A. P., 2018. The practice and future of financing science,
technology, and innovation. Форсайт. 12(2 (eng)). pp.6-22.
Fajardo-Ortiz, D., Shattuck, A. and Hornbostel, S., 2020. Mapping the coevolution, leadership
and financing of research on viral vectors, RNAi, CRISPR/Cas9 and other genomic
editing technologies. PloS one. 15(4). p.e0227593.
Financial Technology (aka Fintech) and its Impact on Traditional Banking. 2021. [Online].
Available Through: <https://osganalytics.com/blog/fintech-and-its-impact-on-
traditional-banking/>
Golosova, J. and Romanovs, A., 2018, November. The advantages and disadvantages of
the blockchain technology. In 2018 IEEE 6th workshop on advances in information,
electronic and electrical engineering (AIEEE) (pp. 1-6). IEEE.
Hassan, M. K., Rabbani, M. R. and Ali, M. A. M., 2020. Challenges for the Islamic Finance and
banking in post COVID era and the role of Fintech. Journal of Economic Cooperation
& Development. 41(3). pp.93-116.
How the global financial crisis gave birth to Fintech. 2022. [Online]. Available Through:
<https://blog.revolut.com/how-the-global-financial-crisis-gave-birth-to-fintech/>
Lee, C. C and et.al., 2021. Does fintech innovation improve bank efficiency? Evidence from
China’s banking industry. International Review of Economics & Finance. 74. pp.468-
483.
Medyawati, H., Yunanto, M. and Hegarini, E., 2021. Financial Technology as Determinants of
Bank Profitability. Journal of Economics, Finance and Accounting Studies. 3(2). pp.91-
100.
Sirenko, N. and et.al 2020, May. Paradigm changes that strengthen the financial security of the
state through FINTECH development. In 2020 IEEE 11th International Conference on
Dependable Systems, Services and Technologies (DESSERT) (pp. 110-116). IEEE.
Temelkov, Z., 2018. Fintech firms opportunity or threat for banks?.International journal of
information, Business and Management.10(1). pp.137-143.
Online

Parambil, P. and Simon, T. C., 2019. Financial technology (Fin-Tech): opportunities and
challenges. ZENITH International Journal of Multidisciplinary Research. 9(2). pp.249-
264.
Top FinTech Startups & Scaleups of London to Watch Out in 2022. 2022. [Online]. Available
Through: <https://startupsoflondon.com/startups-scale-ups-in-london-the-ultimate-
guide/>
Wibowo, M. and Aumeboonsuke, V., 2020. Bank financial capability on MSME lending amid
economic change and the growth of fin-tech companies in Indonesia. Thailand and The
World Economy. 38(2). pp.63-87.
Yahaya, M. H. and Ahmad, K., 2019. Factors affecting the acceptance of financial technology
among asnaf for the distribution of zakat in Selangor-A Study Using UTAUT. Journal
of Islamic finance. 8. pp.035-046.