Evolution of FinTech

Several accounts have been suggested for the evolution of fintech, in the broad sense of using technology in the provision of financial services. These accounts differ with respect to dates, milestones and driving forces. As in the case of definitions, the historical evolution of fintech has been made such a controversial issue. Distinction is made between evolutionary and revolutionary innovations, and therefore between evolutionary and revolutionary fintech. Controversy has arisen as to whether fintech represents evolution or revolution.

The Sustainable Development Goals (SDGs) could be considered the paramount objective for all nations in the world. In keeping with this, a sound global financial system is now required to fulfill its mandate to encourage the mobilization of private capital for the achievement of sustainable development and consistent economic growth. Blockchain, the Internet of Things, big data, and artificial intelligence are just a few of the recent technological advancements that have been made possible by digital transformation and advancement, specifically in the finance sector. Traditional banks, regulators, and policymakers are all paying close attention to the buzz surrounding Fintech. Since the 2008 global financial crisis, the integration and innovation of emerging technologies and finance have accelerated financial technology development (FinTech). In this paper, we reviewed the literature on the evolution of Fintech in terms of regulations and policies, as well as the role of Fintech in achieving financial inclusion and sustainable development goals. We reviewed the fintech ecosystem and segregated it into three segments, from 2010-2015, 2016-2020, and 2021 to present. We have discussed the existing literature from the mentioned timeline and concluded that despite being surrounded by numerous challenges, the acceptance of Fintech has boomed over the period of time and created some new avenues for the future that support future sustainable international trade while also facilitating the SDGs.

“FinTech”, a contraction of “Financial technology”, refers to technology enabled financial solutions. It is often seen today as the new marriage of financial services and information technology. However, the interlinkage of finance and technology has a long history and has evolved over three distinct eras, during which finance and technology have evolved together: first in the analogue context then with a process of digitalization of finance from the late twentieth century onwards. Since 2008, a new era of FinTech has emerged in both the developed and developing world. This era is defined not by the financial products or services delivered but by who delivers them and the application of rapidly developing technology at the retail and wholesale levels. This latest evolution of FinTech, led by start-ups, poses challenges for regulators and market participants alike, particularly in balancing the potential benefits of innovation with the possible risks of new approaches. We analyse the evolution of FinTech over the past 150 years, and on the basis of this analysis, argue against its too-early or rigid regulation at this juncture.

FinTech refers to the introduction of technology into the financial sector as a result of the development of digital technology. FinTech uses technology-savvy financial innovations to create business models that are advanced, operations, or new products/services. This has led to the development of new types of services, improved financial markets, and better financial institutions. India is moving towards a powerful environment that provides a platform for FinTech startups to become billion-dollar unicorns. FinTech in India has several goals, from opening new divisions to exploring overseas markets. India's economy, typically money-driven, has seen tremendous growth in FinTech by capitalising on the opportunities presented as a result of growth in e-commerce and greater smartphone penetration rates. Hence, based on a thorough literature review by using exploratory research method, this chapter seeks to study the growth and evolution of FinTech in India, with special reference to the COVID-19 pandemic.

Introduction: Fintech, an acronym for Financial Technology, refers to companies offering financial services through innovative technology, such as web platforms and mobile applications, benefiting individuals and businesses. The evolution of Fintech is characterized by rapid technological development and the proliferation of startups. In Latin America, the sector is growing significantly, with key markets like Mexico and Brazil, offering new opportunities to improve financial inclusion, a fundamental aspect for economic and social development.Objective: To characterize Fintech as an innovative component in the financial sector.Methods: A literature review was conducted by consulting databases such as PubMed and ResearchGate, selecting 17 articles mainly from the last five years. Relevant information was extracted to develop this research.Discussion: Since 2014, Fintech has transformed the global financial sector, gaining regulatory and market prominence. It improves efficiency and accessibility but still depends on trust in intermediaries for electronic payments, posing risks that could be mitigated with technologies like blockchain. Fintech competes and collaborates with traditional banks using technologies such as artificial intelligence. However, its growth presents regulatory and consumer protection challenges. Generational and digital gaps also limit adoption.Conclusions: Fintech is an innovative pillar that enhances accessibility, efficiency, and financial inclusion, especially in Latin America. Regulatory, security, and generational challenges require attention to ensure safe and equitable adoption. Regulation and financial education are key to maximizing benefits and promoting economic and social development

핀테크는 금융서비스와 기술 사이에 발생한 간극을 이어주고 오늘날 금융기술 분야의 혁신을 의미하는 것으로 이해되고 있다. 최근 핀테크의 발전이 스타트업과 기존 금융기관의 기반사업, 규제 그리고 법적 환경에 미치는 영향에 대하여 많은 논의가 있었지만, 조세제도에 미치는 영향과 관련해서는 별다른 논의가 이루어지지 않는 실정이다.BR 세계적으로 크라우드펀딩과 P2P 대출은 이미 10여 년 전부터 존재하였지만, 이들 제도가 요즘과 같이 추진력을 얻게 된 것은 불과 몇 년이 되지 않았다. 블록체인 또는 분산원장기술(DLT)의 경우 아직은 실험단계 수준에 머물러 있는 관계로 그 도입이 조세제도에 미치는 영향에 대하여 논하는 것은 아직 이른 감이 없지 않다.BR 그럼에도 핀테크의 유례없는 발전 속도와 블록체인의 잠재력 및 광범위한 활용 양상을 고려해 볼 때, 핀테크 금융서비스의 대표주자인 크라우드펀딩과 P2P 대출, 그리고 신기술과 관련하여 특히 주목받고 있는 블록체인 기술이 조세 분야에서 가지는 의미와 구체적 과세 쟁점을 고려해 보는 것은 상당한 의미가 있을 것으로 생각된다.BR 크라우드펀딩은 기업의 입장에서 자금조달과 마케팅을 같이 진행할 수 있고, 투자자 입장에서는 후원에 대한 합리적인 보상과 투자에 대한 세금공제를 받을 수 있다는 점에서 많은 관심을 받고 있는 제도이다. 4차 산업혁명 시대에서 스타트업 생태계의 선순환을 도모하고 혁신성장에 따른 스타트업의 고용창출 효과를 활성화하기 위해서 크라우드펀딩과 관련한 명확한 조세제도를 정비하고 크라우드펀딩 기업 및 투자자에 대한 조세우대조치를 확대할 필요성이 있다.BR 현재 핀테크 산업의 선두주자인 P2P 대출 업종과 관련하여, 우리나라 정부는 적격 P2P 금융의 소득세 원천징수세율 인하 이외에 이를 지원하는 세제를 특별히 도입하고 있지 않다. 그러나 최근 ‘P2P 대출 관련 법안’이 국회 정무위원회 법안심사1소위에서 가결되는 등 P2P 대출의 제도권 편입을 위한 움직임이 빨라지면서, 핀테크 산업의 성장에 필수적인 P2P 대출 산업의 활성화를 위하여 적격 P2P 금융에 대한 규제의 획기적인 완화 및 조세우대조치도 후속적으로 이루어질 것으로 기대된다.BR 한편 국제화․디지털화에 따른 정보의 산재(散在)로 어려움을 겪는 과세당국의 입장에서 블록체인이 제공하는 기술은 남다른 매력으로 다가온다. 블록체인의 주요한 특징은 ‘투명성(transparency)’과 ‘비밀유지(confidentiality)’인데, 이는 해당 기술이 조세 분야에서 널리 적용되기 위한 전제조건으로서 중요한 고려 요인이라고 할 수 있다. 각국의 과세당국은 관할에 상관없이 블록체인에 기반한 플랫폼 공유를 통해서 조세행정에 관한 정보교환 및 징수 협조를 강화할 수 있다. 아울러 블록체인 기술의 적용은 과세당국이 납세자 제공 자료에 대한 의존도를 줄이고 외부의 독립된 데이터 자료, 즉 객관적인 정보를 실시간으로 확보하는 것을 가능하게 한다. 블록체인의 장점을 효과적으로 활용한다면, 조세회피와 관련하여 실무상 발생하는 문제를 개선하고 조세행정의 효율성을 획기적으로 높일 수 있을 것으로 기대된다.

The dominant narrative within the literature on the history and evolution of financial technology (fintech) is inordinately Western-centric as it is centred around the experience in Europe and the United States. This article proposes a nuanced approach to analysing the history of fintech beyond the perspectives of developed countries. It explores the application of technology to finance within the context of the prevailing socio-economic and political landscape in several African countries during the pre-colonial, colonial and post-colonial eras, respectively. The article argues that failure to properly situate the peculiarities of the African fintech story in the literature, including the factors that have defined the African experience, has undermined the design of effective fintech regulations on the continent. Consequently, the prevailing regulatory environment for fintech in several African countries promotes exploitative fintech products that are inimical to the interests of Africans. To harness the potentials that fintech presents for African countries, financial regulators need to learn from history.

Purpose – Artificial intelligence (AI) is the part of computer science that manages bots that are programed to exhibit human-like characteristics such as cognition, learning, and self-reflection. Artificial intelligence (AI) has emerged as the most significant driver of change in today’s business world. Artificial intelligence (AI) works toward a user-friendly ecosystem in every field, including the financial sector, the medical sector, and other fields. “Financial Technology,” or “FinTech,” refers to the role that has become essential in the financial system. The research paper aims to explore artificial intelligence (AI) as an implementation in fintech in India. The research effectively uses multiple case studies to understand how AI became a game-changer for the fintech industry. Methodology – The paper will use secondary sources to identify areas where AI has already been implemented in fintech firms. It will also cover the challenges that come with AI. This area will help us to understand how AI uses users’ data like payment patterns, lending patterns, and income 84patterns to build an ecosystem that helps to engage and identify the creditworthiness of the users. These secondary sources act as an alternate evidence for data analysis to create a theoretical representation of the evolution of fintech in the age of AI. Findings – The findings have been presented as one-of-a-kind results that were accomplished while considering the context of those sources. The paper also envisaged both the benefits and the difficulties that artificial intelligence (AI) is currently experiencing in India. Findings show that day by day, AI uses have experienced exponential growth in fintech. Practical implication – The research broadens one’s perspective on the many ways in which the practice can be improved. This paper will show how the use of AI will redefine the fintech market’s future. It would tell them to prioritize the efficiency and safety of financial processes and implement new technology-driven business models to provide better service to their clients. Social implications – Artificial intelligence is reshaping the conventional techniques in every sector like the medical, education, and financial sectors. In the financial sector, fintech companies are the major players using AI to understand the user’s usability and income and spending patterns, find new worthy customers, and reduce human errors. Value – This work fills a research gap by shedding light on the previously uncharted territory in Indian contexts, where comparatively little has been done to examine the available literature or organize the abundant data that exists there. Thus, our research was necessary to address that void. Artificial intelligence (AI), a disruptive invention that delivers predictive intelligence to the Indian financial system and equips it with process efficiency, cost optimization, and client engagement, is without a doubt driving exponential growth in the Indian fintech sector. Paper type – This is a desk-based conceptual research paper. Research limitations – It is possible to conduct further research and analysis in other areas of finance, and this is something that should be 85done. Therefore, prospective researchers might consider conducting a comprehensive study that considers all previously done research.

In recent years, the dramatically fast development of financial technology (fintech) has played an important role in the production, delivery and consumption of financial products and services. In this survey, we sum up the primary research discoveries in fintech area, which include the possible evolution of fintech’s effect on customer protection, prosperity and the discovery of the asset prices and returns, and the design of digital frameworks in the era of the fintech.

The moderating role of IT governance on the relationship between FinTech and sustainability performance

FinTech is one of the automated and innovative approaches which play a major role in digitalization of financial services through advancement in financial world. FinTech has wider access and can be used in various spheres of life. FinTech will also affect the financial decisions of the people which require financial as well as digital literary. FinTech enables the individual to take appropriate decisions regarding financial services during a reasonable period of time and can be used by individuals as well as businesses for tracking and managing the financial needs. The aim of the paper is to study the various related concepts of FinTech as well as how it works in financial era. The focus is also given to analyze various tools and techniques which can be used in this innovative financial technique. The estimation of future framework regarding FinTech is also incorporated in the study along with its evolution in financial era. The study will provide deep insight into FinTech as it is a u-turn for the banking mechanism and will play a major role transforming the financial world digitally.

Payments and investments are part of consumers’ everyday life and vital to society and its economic and social systems. As the evolution of FinTech has laid the foundation for the next generation of technical innovation in the financial service sectors, this chapter discusses examples of FinTech innovation and analyzes their opportunities as well as their ecological, societal, and technological risks from consumer and retail investor perspectives. While FinTech innovation has the potential to make financial services easier, cheaper, and better available, all payment and investment services discussed in this chapter have in common the technological risks arising from the possibility to (mis)use consumers’ and retail investors’ data for price discrimination or identity theft. Cryptocurrencies additionally pose ecological risks due to their enormous energy demand, while the new investment services may help retail investors to decrease the ecological risk of their portfolios. The societal risks of FinTech overlap or coincide with the technological risks, for example, when consumer data is used to discriminate groups of consumers. In addition, the high degree of anonymity in cryptocurrency networks and the lack of centralized supervision can provide an ideal playing field for criminal activities such as money laundering and tax evasion that threaten consumer and retail investor welfare.

The Evolution of Fintech: A Regulatory Approach Perspective

E-wallets are one of the breakthroughs brought forth by the evolution of FinTech, which has been accentuated by the global outbreak of COVID-19. Therefore, it is critical to comprehend the factor of e-wallet acceptance. As this technology advances, substantial knowledge and research gaps become apparent. Previous studies on e-wallet acceptance have overlooked the importance of motivation and self-efficacy. There is a dearth of focus on certain age groups, such as Gen Z, which is currently the trendsetter of new technologies. This study aims to close the gaps regarding the lack of focus toward Gen Z, motivation, and self-efficacy in understanding e-wallet acceptance by combining the Technology Acceptance Model (TAM) with Self-Determination Theory (SDT), Self-Efficacy (SE), and Digital Media Self-Efficacy (DMSE) to fully understand the factors influencing e-wallet acceptance among Gen Z, using 233 samples to test 16 hypotheses derived from the identified research and knowledge gaps. External Regulation (ER), SE, and DMSE are the determinants of acceptance, according to Structural Equation Model analysis conducted. Mediation analysis reveals that Attitude toward Use (AT) is the full mediator of Perceived Usefulness (PU) and Perceived Ease of Use (PEU). The quintessential outcome of this research is the Model of E-Wallet Acceptance among Gen Z, which is significant for FinTech industries looking to strategically roll out e-wallet initiatives as well as a point of exploration for numerous future academic research and development.

In Latin America and the Caribbean (LAC), financial technology has been growing rapidly and is on the agenda of many policy makers. Fintech provides opportunities to deepen financial development, competition, innovation, and inclusion in the region but also creates new and only partially understood risks to consumers and the financial system. This paper documents the evolution of fintech in LAC. In particular, the paper focuses on financial development, fintech landscape for domestic and cross border payments and alternative financing, cybersecurity, financial integrity and stability risks, regulatory responses, and considerations for central bank digital currencies.