Finance – Financial Technology Report, University Name, Semester

This report provides a comprehensive overview of financial technology (FinTech), exploring its various facets and implications. It begins by defining FinTech and highlighting its growing importance in the financial sector. The report then delves into the future of FinTech, predicting significant changes driven by technological advancements and evolving consumer demands. It outlines the diverse range of services offered by FinTech firms, categorizing them and comparing them to traditional banking services. The report further examines the competitive landscape between FinTech companies and banks, discussing whether banks are acquiring FinTechs or competing with them. It also addresses the regulation of FinTech firms, their effects on existing financial institutions, and the advantages and disadvantages of FinTech. The report concludes with references to relevant sources, providing a solid foundation for understanding the current state and future trajectory of FinTech.

Running head: FINANCE – FINANCE TECHNOLOGY
Finance – financial technology
Name of the student
Name of the university
Author note

1FINANCE – FINANCIAL TECHNOLOGY
Table of Contents
FinTech......................................................................................................................................2
Future of FinTech.......................................................................................................................2
Services provided by Fintech.....................................................................................................3
FinTech segment /categories v/s bank.......................................................................................3
Competition of Fintech with banks............................................................................................5
Whether FinTechs are now being acquired by banks or they are competing with banks and
whether it is a positive development..........................................................................................5
Regulation of FinTech firms......................................................................................................6
Effect of FinTech on Existing Financial Institutions.................................................................6
Advantages and disadvantages of FinTech................................................................................6
References..................................................................................................................................7

2FINANCE – FINANCIAL TECHNOLOGY
FinTech
Financial technology or Fintech industries are the technology enabled organization
that offers the financial services and the organizations that provides the direct technology
services to the financial institutions (Bunea, Kogan & Stolin, 2016). The fintech entities
employ the technologies for supporting the financial transactions between the consumers and
businesses. Various factors like changing in the demand for the financial products,
technological advancements and the rising competitions in the financial services are
increasing the demand for fintech investments that drawn the attention in this industry in the
recent years.
Future of FinTech
Predicting the future is the most challenging job, however, most of the forecasts
regarding fintech will agree on one thing that the future of fintech will be more radical,
significant and changes will take place due to rapid development with regard to rapid sharing
of knowledge, information technology and developments. However, the future of fintech
industries are predicted as follows –
 Expanding scope – throughout value chain the fintech entities expanded in more than
thirty various financial services. It will enhance the competition among the traditional
advisors for finance and the robo-advisors as the fintech firms are getting involved in
the ancillary services for finance and the advisory services for the offerings of core
products.
 Requirement in fund diversity – the fintech firms are now employing the wide range
of business models that will target the wide range of customers.

3FINANCE – FINANCIAL TECHNOLOGY
 Improving the collaboration – they are collaborating with the other for maximizing
the market share and the revenue and to reduce the overhead costs and technological
competitiveness.
 Increasing of the volumes and the consolidations – the fintech entities prefers
consolidation as the bigger players for turning towards acquisitions for meeting the
growth objectives
 Normalizing valuations – the fintech firms starts slowing down as it reaches the
maturity that means valuations for the start-ups in space gets slowed down (Bholat &
Chakraborty, 2017).
 Navigating new landscape for regulations – the surroundings of financial services
have started for adapting the fintech companies that entered in the market. However,
in few instances, these changes in the regulation may hurt the fintech companies that
strongly follow the existing rules.
Services provided by Fintech
Various services provided by the fintech firms are as follows –
Various users have various preferences for particular attributes of services or
combination of services. For example, some of the users prefer the transparent and safe
financial services while other users may prefer usability and speed. However, users may not
be satisfied with attributes combination and the prices at the disposal. In such instances, the
improvement of the service attributes will induce the jump for the demand.
FinTech segment /categories v/s bank
Payments – in last few years the payments are greatly evolved. The major forces that have
impacts on the payments are as follows –

4FINANCE – FINANCIAL TECHNOLOGY
 Launch of Apple pay during 2014 developed and opened the potential of the mobile
payments to the world.
 Rate of interest increased with regard to the potential applications for the alternative
currencies like bitcoin
 Uber familiarized the users with the experience of payments that had no payment
moment
Lending – in last few years the lending are greatly evolved. The major forces that have
impacts on the lending are as follows –
 Mass P2P lending – Rapid growth of P2P services that reaching considerable number
of the customers around the world.
 Alternative adjudication – new ways for measuring and tracking the credit worthiness
has been developed
 Automated and lean process – automation was transforming the loan origination and
adjudication (Wu, 2017).
Investment – in last few years the management of investments are greatly evolved. The major
forces that have impacts on the investment are as follows –
 Rise of the Robo-Advisers – the automated advisers that utilize the trading formulas
on the basis of the low-fee-ETFs as these were capturing the attention.
 Driven analysis for the big data – the fintech firms were starting tapping into potential
of the big data for the purpose of investment
 Increasing externalization of of B2B – the fintech firms started outsourcing the
processes for back offices like regulatory monitoring

5FINANCE – FINANCIAL TECHNOLOGY
Financing – financial services provided by the fintech firms are the loans, funding, payment
gateways services and investment management
However, as against the above mentioned services most of the traditional banks have
very few qualities and instead they are correlated with security and trust, customer
indifferences and significant capitalization.
Competition of Fintech with banks
At present the banks are assuming that the fintech companies generally post greater
opportunities as compared to the threats. However, the banks still get itself up against them
through various extensive associated difficulties over few fronts. Further, the clients are
acclaimed towards higher amounts for the carefully empowered benefits of the client in
various ventures (Skinner, 2016).
Whether FinTechs are now being acquired by banks or they are competing with banks
and whether it is a positive development
Generally, bank faces various problems with regard to front-end staffs and toggling
among various windows for getting information of the customers. When the problem is not
usual then the solution will also not be usual. Therefore, the banks require the help of fintech
firms to feed various systems into bank’s systems to update the profile of the customers and
detail the relationship with the banks and analyse best product for the customers. Therefore,
fintechs are now acquired by the banks instead of competing with them (Jun & Yeo, 2016).
This is a positive development as various problems can be solved and together both
can improve the areas where they face the problems like updating the customer’s data,
payments solutions for next generation, strong presence of banks, lowering cost of the capital
and deep experience in lending.

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Regulation of FinTech firms
Fintech firms are regulated by the federal regulation
Effect of FinTech on Existing Financial Institutions
Owing to the fintech firms, the financial institutions have to follow increased scrutiny
for regulations and various other challenges. The confidence and public trusts are becoming
low and the banks as well as bank’s executives have to face the political rebuke (Skinner,
2016).
Advantages and disadvantages of FinTech
Advantages of Fintech are as follow –
 Savings – it helps in savings the operating cost, avoiding the hiring cost of local staff
 Flexibility – enables in saving information and data query in various alternatives
 Transparency – companies are able to manage in faster and transparent way (Murphy,
2017).
Disadvantages of Fintech firms are as follows –
 Applicable to large companies only – it is effective for the large companies and the
end users only get benefitted from this
 Security – online available data can easily be theft or stolen by the third parties and
the information can be used for any lucrative purposes (Harker, 2017).

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References
Bholat, D. M., & Chakraborty, C. (2017). Identifying'Uber Risk:'Central Banks' Analytics
Aid Stability.
Bunea, S., Kogan, B., & Stolin, D. (2016). Banks Versus FinTech: At Last, it's
Official. Journal of Financial Transformation, 44, 122-131.
Harker, P. T. (2017). The Global Interdependence Center’s Payment Systems in the Internet
Age Conference (No. 130).
Jun, J., & Yeo, E. (2016). Entry of FinTech firms and competition in the retail payments
market. Asia
‐Pacific Journal of Financial Studies, 45(2), 159-184.
Murphy, J. P. (2017). More Sense Than Money: National Charter Option for Fintech Firms Is
the Right Choice. NCJL & Tech. On., 18, 359-409.
Skinner, C. (2016). How Fintech firms are using bitcoin blockchain and mobile technologies
to create the Internet of value. Singapore: Marshall Cavendish International (Asia)
Pte Ltd.
Skinner, C. (2016). Valueweb: How Fintech Firms are Using Mobile and Blockchain
Technologies to Create the Internet of Value. Marshall Cavendish.
Wu, Y. T. (2017). FinTech Innovation and Anti-Money Laundering Compliance. NATIONAL
TAIWAN UNIVERSITY LAW REVIEW, 12(2), 201-258.