The evolution and revolution of fintech

The Evolution of Fintech: A New Post-Crisis Paradigm?

Retailing is traditionally defined in terms of the retailers’ place in the distribution of tangible products. However, the retail function may be more widely defined where the retailer concerned is involved not only in the provision of product distribution services but also in the management and provision of financial services. Retailers are rediscovering the impact financial services may have on organisational success. That is, they are increasingly recognising the direct contribution that financial services may make to profit margins and the indirect benefits which may accrue through increased customer loyalty. This article considers the framework within which innovation in the provision of payment systems and other financial services is occurring in the retail sector.

Тhe definition of the concept of a contract as one of the theoretical foundations of the legal regulation of the provision of financial services in Ukraine has doctrinal significance for the provision of financial services.
 The author notes that the Civil Code of Ukraine does not contain separate provisions under the agreement on the provision of financial services. Turning to special legislation, it is noted that the laws do not contain a definition of the concept of a contract for the provision of financial services, however, by analyzing individual articles, it is possible to investigate the approach to understanding the contract being studied through the category of “contract-legal fact”.
 It is argued in the article that, according to the definition of the concept of a contract as a legal fact, a contract is a certain lawful act on the part of parties who intend to establish, modify or terminate certain rights and obligations. However, the contract is not only the basis for the emergence, modification or termination of certain rights and obligations, that is, it “affects” the dynamics of legal relations, but also through the contract the parties can determine the specific content of rights and obligations in each individual case.
 The contract differs from other legal facts that it not only provides grounds for the application of a rule of law in a particular case and for the emergence, modification or termination of specific legal relations, but also directly regulates the conduct of the parties, determines the rights and obligations of the parties to legal relations. This follows from the essence of the contract as an agreement of the parties, an act of their will. By expressing their will, the parties assume certain responsibilities and acquire certain rights.
 Although the content of certain articles of special laws on the provision of financial services can define a financial services contract as a legal fact with which the emergence of legal relations for the provision of financial services is associated, the doctrinal significance is the definition of a contract through the classical theory of the interpretation of a contract as an agreement.

PurposeThe study examined the influence of humanitarian organizations’ culture and financial service providers’ technology readiness on the usage of digital cash-based assistance by humanitarian organizations, the influence of Humanitarian Organization Culture on Financial providers’ technology readiness and the mediating role of financial service providers’ technology readiness on the relationship between the culture in humanitarian organizations and their usage of digital cash-based assistance.Design/methodology/approachA quantitative cross-sectional survey design was used. The target population consisted of humanitarian organizations that were members of the Uganda Cash Consortium (UCC). The research hypotheses were tested using SMART PLS version 4.FindingsThe culture in humanitarian organizations and financial service providers’ technology readiness positively influences the usage of digital cash-based assistance by humanitarian organizations during humanitarian crises, and humanitarian organizations’ culture positively influences financial service providers’ technology readiness. Financial service providers’ technology readiness fully mediates the relationship between the culture of humanitarian organizations and the usage of digital cash-based assistance by humanitarian organizations during humanitarian crises.Research limitations/implicationsThe study mainly focuses on culture in humanitarian organizations and financial service providers’ technology readiness when examining the usage of digital cash-based assistance during humanitarian crises. Further, financial service providers’ technology readiness is examined using a humanitarian organization, financial service provider and beneficiary/persons of concern’s point of view rather than the government’s point of view.Originality/valueResearch examining determinants for digital cash-based assistance usage in humanitarian crises is scarce. Further, empirical research examining the influence of the humanitarian organizations’ culture and financial service providers’ technology readiness in promoting the usage of digital cash-based assistance in humanitarian crises, the impact of humanitarian organizations’ culture on financial service providers’ technology readiness and the mediating role of financial service providers’ technology readiness on the relationship between the culture of humanitarian organizations and usage of digital cash-based assistance in humanitarian crises are non-existent. The majority of research and grey literature focuses on how digital cash-based transfers can be used to enhance financial inclusion in refugee contexts.

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.

Purpose – The purpose of this paper is to describe and conceptualize customer relationships in the financial service sector, focussing on three aspects of customer-bank relationships: the financial service provider perspective, the customer-provider dyad, and the customer context. Design/methodology/approach – Through a short review of the eight papers included in this special issue, this paper illustrates different aspects of customer relationships. It explores customer value formation in the context of banking services, the dynamics and strength of customer relationships, and strategies for financial service provision and consumer trust. Findings – Customer relationships in the financial service sector are increasingly dynamic and unpredictable. This may be due to both activities within the control of financial service providers, such as strategies for service provision, but is more often attributable to factors beyond the control of providers. What empowered customers are doing in their own settings influences their attitudes toward and evaluations of financial services. Research limitations/implications – The paper is conceptual. It challenges the firm-centric approach to customer relationships and compares different perspectives of customer relationships. The significance of the customer-centric perspective is emphasized. Practical implications – Awareness of uncontrollable and idiosyncratic aspects of customer relationships will offer financial service providers new opportunities for being present in the customers’ lives and business. Originality/value – This paper illustrates the importance of extending the focus from what financial service providers are doing to what customers are doing within their own domains. Financial service providers need to understand more about their customers than their perceptions of service quality, satisfaction, and loyalty in different distribution channels, such as internet and mobile banking. The focus should be instead on how customers integrate their financial activities and experiences in their own life or business.

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 Covid-19 pandemic has transformed the needs of consumers of goods and services. As a result, there was an increase in the volume of BigTech activity. At the same time, BigTech took into account the expectations of consumers in obtaining complementary services. This led to the growth of BigTech's offerings of financial services to its clients. The purpose of the article is to clarify the place of financial services in the BigTech ecosystem and to identify the priority areas of activation of the provision of financial services by BigTech firms. The article describes the BigTech ecosystem from an institutional point of view. The study presents the composition of participants of the BigTech ecosystem, which are connected by a digital platform and the use of information technologies that contribute to the sale of goods and the provision of services, including financial ones. The technical, economic, legal, and marketing prerequisites for providing BigTech financial services have been identified. This made it possible to substantiate the influence of consumer needs on the formation of the policy of providing BigTech financial services. It has been confirmed that BigTech implements a policy of providing financial services that meet customer expectations. The weaknesses and strengths of BigTech financial services are identified. The threats and opportunities of providing BigTech financial services are substantiated. The conducted research made it possible to formulate geographical, product, and client directions for the development of the provision of BigTech financial services.

This study looks at the evolution of FinTech from a disruptive force to acomplementary element within the financial landscape. Drawing on disruptiveinnovation theory and financial intermediation theory, this study takes a holisticapproach to uncover the mechanisms driving this change. Data was collectedusing a structured questionnaire distributed to 162 IT employees of financialinstitutions in Tanzania. The data was analyzed using structural equationmodeling with Smart PLS. The results show the positive influence of thescalability of FinTech systems and online authentication on financial inclusionand emphasize their central role in expanding access to financial services. Theeffectiveness of online authentication in promoting financial inclusion isparticularly noteworthy. However, the results show that product substitutabilityhas a negligible influence on financial inclusion, pointing to the need for astrategic reorientation of resource allocation. These findings provide industrypractitioners with valuable strategies to navigate the complex intersection ofFinTech and traditional banking. This study contributes to the theoreticaldiscourse by presenting a unique model that integrates disruptive innovationtheory and financial intermediation theory. It argues for concerted efforts to useFinTech as a catalyst for promoting financial inclusion and draws attention toits potential as a powerful enabler for inclusive financial systems. Keywords: Financial inclusion; financial technology; FinTech; Disruptive Innovation;Financial Intermediation.

Traditional financial services have undergone tremendous change as a result of the explosive expansion of the financial technology (FinTech) industry. Examining the way in which technology is changing banking, payment, lending, and making an investment offerings, this research paper examines the improvement of FinTech and its disruptive effects on traditional monetary establishments. FinTech groups are hard the dominance of conventional economic structures through addressing client desires for speed, accessibility, and comfort by using using techniques like blockchain, artificial intelligence, and apps. 220 respondents provided data that was analyzed to compare consumer preferences, trust levels, accessibility, and overall user satisfaction with FinTech services to conventional financial institutions. The results show patterns that highlight the potential and constraints in both industries, providing important insights into consumer behavior. The research clarifies the potential benefits of FinTech for improving user experience and financial inclusion, as well as the continuous difficulties with regard to security, legislation, and market competitiveness. This research emphasizes the necessity for traditional financial institutions to innovate and adapt to stay relevant in a financial environment that is changing quickly due to FinTech's ongoing expansion.

This study looks at the evolution of FinTech from a disruptive force to acomplementary element within the financial landscape. Drawing on disruptiveinnovation theory and financial intermediation theory, this study takes a holisticapproach to uncover the mechanisms driving this change. Data was collectedusing a structured questionnaire distributed to 162 IT employees of financialinstitutions in Tanzania. The data was analyzed using structural equationmodeling with Smart PLS. The results show the positive influence of thescalability of FinTech systems and online authentication on financial inclusionand emphasize their central role in expanding access to financial services. Theeffectiveness of online authentication in promoting financial inclusion isparticularly noteworthy. However, the results show that product substitutabilityhas a negligible influence on financial inclusion, pointing to the need for astrategic reorientation of resource allocation. These findings provide industrypractitioners with valuable strategies to navigate the complex intersection ofFinTech and traditional banking. This study contributes to the theoreticaldiscourse by presenting a unique model that integrates disruptive innovationtheory and financial intermediation theory. It argues for concerted efforts to useFinTech as a catalyst for promoting financial inclusion and draws attention toits potential as a powerful enabler for inclusive financial systems. Keywords: Financial inclusion; financial technology; FinTech; Disruptive Innovation;Financial Intermediation.

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

Paper dwells upon critical consideration of contemporary scientific discourse on measuring financial inclusion. The features of existing approaches to data collection on the supply and demand of financial products and services are summarized, with generalization of their methods of obtaining, elements, sources, pros and cons. It is stated that according to this principle a key indicator of financial inclusion – Global Findex is formed, and its components are under consideration with a focus on disadvantages. The level of development of economy and Fintech, financial literacy and financial culture of the population are highlighted as the important aspects in financial inclusion assessment. Measurement of financial inclusion is found to be based on the assessment of groups of indicators such as the availability, level of use and compliance of financial services, the assessment of barriers and the relationship of households with business. The main advantages (comparability, structure, evaluation of exclusion factors) and the existing limitations of measuring financial inclusion (subjectivity, neglect of country characteristics, lack of a comprehensive indicator) are generalized. Authors substantiate key evaluation principles and present indicators of financial inclusion in Ukraine. Paper suggests to consider the assessment in two contexts: on the one hand, by financial market segment, and on the other, by four dimensions: accessibility, prevalence, effects and impact. Given the limited information available to measure financial inclusion at the global and local levels, there is a need for continuous research on the supply of financial services, detailing information from a demand position, on the importance of taking into account access barriers to financial services along with various aspects of socio-economic development.

The purpose of this chapter is to examine how the concept of ‘professionalism’ in modern day financial services in the UK is understood and practised. It examines how computerisation, competition, remuneration strategies, Big Bang and misplaced regulation have all contributed to a reduction in professional standards. It goes on to examine how structural changes in the provision of financial services and the dash for profit growth have led to a reduction in ‘professional services’ and how they have been replaced by a sales culture. It further reflects on how these changes have altered the trust relationship between customers and providers. Finally it reflects on how professional bodies might assist in the restoration of professional standards and trust in the provision of financial services.

Purpose- Financial inclusion means individuals and businesses have access to useful and affordable financial products and services to deliver their needs in a responsible and sustainable way. A financial sector is measured and compared on four main features; debt is the size of financial institutions, access is the access and use of financial services by the users, efficiency is the efficiency in the provision of financial services, and stability is the stability in the provision of financial services. The purpose of this paper is to measure the level of financial inclusion of Turkey and Greece from 2000 to 2020 and compare its relationship with the economic growth and income inequality of both countries. Methodology- The World Bank data covering the 2000-2020 period is extracted from Turkey and Greece from the world bank report. The whole financial system for both countries is defined as a combination of banks, nonbanks financial institutions, and stock exchange markets. The related indicators for each of the subsectors of the financial system are determined for banks, nonbanks financial institutions, and stock exchange markets. Thus, 32 indicators for banks, 6 indicators for nonbanks, and 16 indicators for stock exchange markets are determined for the financial inclusion index. All indicators are in percentages. All individual indicators are summed for the computation of subsectoral indexes and then the growth rate in each subsectoral indexes are computed. The growth rates of each subsectoral index are summed and weighted by the subsectoral asset sizes or trading volüme. Finally, the causal relationship between the financial inclusion index, Gini coefficient, Poverty Headcount ratio, and GDP per capita was examined. Findings- The average growth rate for the financial inclusion index for the 21 years is 2,83% for Turkey and 0,97% for Greece. According to the analysis, we found that the financial inclusion index Granger-cause GDP per capita, Gini index Granger-cause financial inclusion index and there is a bidirectional relationship between the financial inclusion index and Poverty Headcount ratio for Turkey. On the other hand, there is a bidirectional relationship between GDP per capita and the financial inclusion index and a bidirectional relationship between the financial inclusion index and the Poverty Headcount ratio for Greece. Conclusion- Financial inclusion simply means a larger size of financial institutions and a variety of financial products and services available for the use of adult individuals, businesses, and governmental agencies. Economic growth is supported and accelerated by an increase in financial inclusion. The empirical analysis supports the literature that the growth in the financial inclusion index enhances a higher growth in GDP and a much higher growth in GDP per capita for both Turkey and Greece. The project titled “Istanbul as an International Financial Center” may easily improve the level of financial inclusion in Turkey. Keywords: Financial inclusion, economic growth, income inequality, financial indicators, Turkish and Greek financial markets JEL Codes: G40, G41