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

Financial technology is a technological innovation in financial products and services. Financial technology can become a new solution to increase the growth of financial inclusion. The term financial inclusion became a trend after the 2008 financial crisis. Financial inclusion is the availability of access to various financial institutions, products, and services to the needs and capabilities of the community to improve people's welfare. For this reason, this research examines the role of financial technology in increasing financial inclusion, by explaining how financial technology has an impact on financial inclusion in improving people's welfare. Financial inclusion is a national development strategy aimed at promoting economic growth through equal distribution of income, poverty alleviation, and financial system stability. Financial inclusion in its role requires an increase in financial technology considering that along with technological developments, the banking sector alone is not enough to achieve the goal of financial inclusion. Financial technology plays an important role in expanding access to financial services for the public, this is reflected in the financing provided by several financial technology companies. With this financing, it is hoped that the level of social welfare will also increase along with the influence of fintech in Indonesia's financial inclusion.

The Indonesian Financial Services Authority (Otoritas Jasa Keuangan) states that the financial literacy increase will be followed by developing the financial inclusion index. Nevertheless, the level of public financial literacy is still far behind the financial inclusion index. Perpres No. 82 of 2016 concerning the National Inclusive Finance Strategy sets a target of 75% of the adult population to access financial services in 2019. As information technology develops and internet penetration rates rapidly emerge, digital financial services emerge that make it easier for people to obtain financial services called financial technology. The increasing use of financial technology is one of the drivers for increasing national financial inclusion. This study aims to investigate studies of financial inclusion, financial literacy, both from knowledge, behavior, and financial attitudes, and financial technology. The research is a literature study research examining thirty journals and reports related to Financial Inclusion, Financial Literacy, and Financial Technology. Formed on the respondents' characteristics, gender, age, education, and occupation had an impact on increasing financial inclusion, financial literacy, and financial technology in Indonesia. Many people use financial products and services without having a good knowledge of the functions, how to choose the right according to needs, and do not know the risks of the products used. Recommendation from this is a strategy strategic of the respondents' characteristics is needed in increasing financial inclusion.

The Disruptive Implications of Fintech-Policy Themes for Financial Regulators

This research aims to analyze the relationship between financial literacy variables and financial inclusion, the relationship between financial literacy variables and financial technology, and the relationship between financial technology variables and financial inclusion. The analysis of this research is to learn more about how financial literacy and the use of financial technology influence financial inclusion. This type of research is associative quantitative. Next, the relationship between these variables is explained using statistical formulas. Consequently, the term for this research is “quantitative research”. The study population is the number of people who use financial services. For this sampling, the purposive random sampling method was used. The following criteria are determined in sampling: 1) Minimum age 17 years, this is intended to take the minimum age standard in sampling and is considered capable of understanding the contents of the questionnaire statements. 2) Have ever used financial services. In this study, 11 question items were used to measure 3 variables, so this study used the largest range, namely 231 respondents. The intervention variable will be used as a reference for the Partial Least Square (PLS) method to analyze this research data. This study uses a causal model (causal modelling, relationships, and influence) or path analysis. The hypothesis that will be discussed in this research is tested using the Structural Equation Model (SEM), which is operated with Smart PLS. The results of this research show that financial literacy has a positive and significant impact on financial inclusion in society. Financial literacy has a positive and significant impact on financial technology. financial technology has a positive and significant impact on financial inclusion, financial technology can offset the impact of financial literacy on financial inclusion. The results of this research are used as input for the community so that they pay more attention to their internal human resources related to financial products that can be used for investment. With knowledge of the right financial products, it is hoped that they can create good financial behaviour so that an awareness of the importance of carrying out good financial planning. For financial institutions, it is hoped that this can increase easy access to financial products and services, in particular credit for businesses as additional capital for the community.

With a platform that can reach the entire layer of society, it is expected to increase product sales and collaborate with business partners through electronics so that it is known as Electronic Business (E-Bussines). The innovation of the merging of financial services and information technology gave birth to new systems to run financial transaction mechanisms that help consumers called financial technology or fintech. Thus the government must provide a form of legal protection both in terms of business administrators and for the community who act as customers. One of them is the supervision and regulation of financial technology (fintech) issued by the Jasakenangan Authority (OJK). The main objective of this study is to provide knowledge on how the role of the Financial Services Authority (OJK) in overseeing services in financial technology companies (fintech) in Indonesia. This study uses a qualitative method. This article is more focused on discussing the results of previous studies related to financial technology (fintech) in Indonesia. The results of this study show that each organizer involved in the field of Financial Technology (Fintech) type of peer to peer lending must be registered and get licensing as an organizer by the OJK before starting to operate their business. In order to supervise fintech in Indonesia, OJK issued OJK Regulation No. 13/POJK.02/2018 concerning Digital Financial Innovation in the Financial Services Sector as a provision that covers the supervision and regulation of the fintech industry. This rule is intended to provide legal protection for the user of fintech service users who in the implementation of OJK's supervision use the regulatory sandbox mechanism.

Under the background of technology information sharing problems increasing more and more, and financial technology promoting the traditional financial industry, the society needs to speed up the construction of financial technology information sharing credit evaluation system, strengthen the supervision of internet platform and financial technology enterprises, and effectively avoid more risks. Starting from the concept of internet platform and information technology, this paper discusses the current situation of financial science and technology information sharing based on internet platform, puts forward corresponding solutions to the existing problems, and the construction method of financial science and technology information sharing platform and the optimization and adjustment of credit evaluation method.

The article reveals the content of the concepts «financial technologies» and «financial services» and emphasizes their importance in the strategic development of the banking sector. The features of financial technologies and services as instruments to stimulate innovation in the financial sector are reflected. For this purpose, a clear distinction is made between the concepts of «financial technologies» and «financial services». The research methodology is based on taking into account the dependence of the process of improving banking services on progress in financial technologies. The analysis of the development strategy of the Russian banking sector was carried out by reviewing the initial stages of its development (according to the methodology of V. L. Kvint). The results of the analysis of trends and patterns as well as the OTSW analysis of the development of the banking sector in Russia in the context of the introduction of financial technologies are presented. Based on the materials of the research, the authors come to the conclusion that the future of the Russian financial market (including the banking sector) depends on the answers to the questions posed by financial technologies, since the digitalization process is increasing the availability and ease of use of financial service, creates new challenges and complicates the old one. Most financial service providers have already understood their need for digital technology and have begun to develop and implement appropriate strategies. The rest of the financial market participants need to create asymmetric response strategies for more effective development of their products and services. In conclusion, the work formulates strategic recommendations for creating and improving a favorable environment for financial technologies in the financial market.KeywordsFinancial technologiesFinancial servicesStrategy conceptStrategic trendsOTSW analysisBusiness model transformationBanking ecosystems

This Iraqi banks are an important part of the financial system in Iraq, and to achieve sustainability and growth in a competitive environment, conventional and Islamic banks resort to the use of financial engineering techniques, which include a wide range of financial tools and products to achieve specific goals such as controlling risks and achieving the desired financial returns, these technologies enable Iraqi banks to design innovative financial products and services that comply with the principles and regulations of banks, which enhances customer confidence and increases their financial sustainability. Financial engineering techniques are also powerful tools for risk management, providing tools to assess, manage and control financial risks, such as derivative instruments and portfolio management techniques, these technologies contribute to improving the efficiency and practical effectiveness of banks, including more accurate and effective capital and liquidity management. In addition, financial engineering technologies offer opportunities to improve innovation and diversity in financial products offered by banks, These technologies enable banks to design new and innovative financing products that meet the financial needs of the business, and financial engineering techniques can be used to improve risk management and control, and enhance operational efficiency in improving financial performance, which includes improving internal processes and adopting performance improvement techniques and tools such as financial technology and digital transformation, and expanding the customer base and improving their satisfaction requires providing high-quality services and meeting customer needs effectively. Promoting financial technology Fintech can be used to improve the financial performance of banks, such as mobile applications and other programs that keep pace with the changes of the times

FinTech is a New Financial Technology, which provides financial services through innovative information and communication technologies. It is widely accepted that 4th industrial revolution, has affected tremendously the living and working conditions of the societies. The convergence between advanced technologies, entrepreneurship becomes more complex and remarkably computerized. Within such significant changes it is rather expected that banking, has been one of the most challenged sectors. New players like FinTech and Big Tech companies try to capitalize the circumstances, by promoting new consumer patterns to gain market shares. The purpose of this study is to investigate the rapid expansion of FinTech and to evaluate its impact on the Greek banking system. This topic becomes very important nowadays as the number of FinTech companies, which compete with traditional banks on financial products and services, are increasing constantly as digital technology develops. In our study we apply a questionnaire method mainly with closed questions to collect data from the main players. To do this, we use two questionnaires each one for a different sample. The first sample consists of the consumers for financial products and services in the Greek banking sector and the second sample consists of the employees in the Greek banking sector. According to the results, customers of all ages seem to trust the traditional banks more than FinTech companies whereas the level of mobile transactions separately for each consumer, depends on age and education. From the answers of the consumers, it is clear that security is on the top of their worries for using financial services by FinTech companies. On the other hand, the second questionnaire with bank employees shows clearly that educational level is a critical factor for their readiness and response to new technologies.

The purpose of the study is to evaluate the determinants of financial inclusion in Egypt. Specifically, the present study seeks to determine whether access to financial services, usage of financial service, and knowledge levels of the financial services have determined financial inclusion in Egypt. The descriptive research design has been adopted while targeting 470 managers in commercial banks operating in Egypt. All questionnaires have been returned fully answered and fit for analysis. Going by the descriptive and inferential statistics on the use of financial services, it is evident that a large number of consumers in Egypt have integrated different financial products and services in their consumption process. In respect to this, the availability of different financial services and products influences the consumption of financial services. The research study further underlines the centrality of religion in influencing consumption of financial services in Egypt. Concerning this point, it is imperative for financial institutions to consider integrating religious principles in designing financial products and services in increasing consumption of financial services amongst consumers. There is also a significant effect of knowledge levels of financial services and consumption. The findings of this study reveal that despite the high rate of uptake of different financial services and products, it is imperative for financial institutions in Egypt to consider diversifying their financial products and services. The study recommends that financial firms should develop diversified financial products in order to align with the customers’ needs. Amongst the financial products and services that should be developed relate to banking and insurance products.

Financial technology refers to the integration of technology into financial services, creating new opportunities for businesses and consumers. Financial technology companies offer a variety of products and services, including online banking, digital wallets, mobile payments, peer-to-peer lending, and crowd funding. These services are typically faster, cheaper, and more convenient than traditional financial services, and they also cater to underserved communities. Financial technology has grown due to technological advancements, changes in consumer behavior, and growing demand for transparent and efficient financial services. While financial technology has disrupted the traditional financial services industry, it still faces challenges such as regulatory compliance and cyber security risks. This paper provides an overview of the evolution of financial technology, key players, challenges and opportunities, and future outlook in financial services. It highlights the impact of financial technology on financial services, including competition, customer experience, and access to financial services, cost reduction, and innovation. It also addresses the regulatory and cyber security challenges faced by financial technology companies, as well as the potential for further growth and development. Overall, the paper emphasizes that financial technology has revolutionized the financial services industry, creating new opportunities for businesses and consumers.

The rapid advancement of financial technology, commonly referred to as Fintech, has significantly altered the financial services landscape, thereby facilitating significant progress in the field of financial inclusion worldwide. The term “fintech” denotes a disruptive force that employs digital financial platforms and information technology to provide financial services to underserved regions. This study examines the significant impact of financial technology advancements on the expansion of financial services to marginalized communities. In order to investigate the manner in which these technologies eliminate the conventional obstacles that impede access to financial services, a comprehensive evaluation of current advancements, such as blockchain technology, digital payments, mobile banking, and peer-to-peer lending, is conducted. The study emphasizes the potential of blockchain technology to improve the transparency and security of financial transactions, the convenience and accessibility of digital payments in promoting economic participation, and the role that mobile banking plays in providing banking services to populations in remote areas that lack bank accounts. The data for this study was collected by sending online questionnaires to 486 fintech users in April and May of 2024. The smartPLS 3.0 program was employed for route modelling and data analysis. The results indicate that the innovativeness of consumers is a significant factor in determining the adoption of financial technology in India, both directly and indirectly. Additionally, it was demonstrated that the adoption of Fintech was significantly influenced by the attitude of consumers. Contrary to common perception, financial literacy is not the paramount element influencing the adoption of Fintech. This indicates that the use of Fintech necessitates a diminished degree of financial acumen and the capacity to engage with persons who are unbanked or have a restricted understanding of financial principles.

FinTech field began to develop rapidly since 2008, after the Global Financial Crisis. This was due to the fact that financial institutions could not quickly respond to consumer needs because of a number of regulatory and legislative restrictions that were implemented to overcome the consequences of the crisis. At the same time the main factors of FinTech development were technological evolution, emerging customer expectations, availability of funding and capital, and support from governments and regulatory authorities. FinTech makes traditional financial services more affordable, flexible and secure, and therefore FinTech is one of the main drivers of digital transformation of the whole financial sector and the development of financial accessibility in the world. The development of the FinTech industry has a huge influence on the financial sector. FinTech strives to make financial services more accessible for both consumers and businesses. FinTech companies are fast growing and attract a large amount of investment each year in their development. At the same time, traditional financial institutions feel threatened on their part, because with the increasing number of FinTech companies, competition in the financial services market is growing too. In order to stay on the market, traditional banks are forced to adapt to modern realities and develop cooperation with FinTech companies. FinTech companies can help banks provide financial products and services more effectively and strengthen their competitive advantages. For example, they can improve financial inclusion, enhance customer experience, increase transparency, improve security, and provide support and guidance. Thus, financial institutions in cooperation with FinTech companies are able to provide new financial products and services to groups of customers who previously did not have access to traditional financial services. In addition, thanks to new technologies, financial institutions can offer personalized services and communicate online with customers, which significantly increases their engagement and experience. Furthermore, FinTech companies can help financial institutions detect fraud and deal with cyber-attacks and other online risks. Keywords: FinTech, financial technologies, financial services, financial innovations, FinTech adoption.

Methods. The theoretical and methodological basis of the study was the scientific works and research of domestic and foreign economists, statistical materials on the level of penetration and development of digital technologies in the financial sector, financial indicators of subjects and objects of the financial market. Results. The article examines the essence of financial market development mechanisms, principles of digitalization of the financial market, determines the prerequisites for the emergence of the latest financial digital technologies for the purpose of virtualization and digitalization of financial flow management. The key financial technologies, main financial products and services using Fintech, which affect the development and functioning of the financial market, are presented. The latest financial technologies and tools in the context of the digital economy are actively reshaping the financial market, displacing traditional players and traditional business models. The introduction and implementation of modern financial solutions makes it possible to change the mechanisms of functioning and development of the financial industry. As a result, financial technology and the market is gradually turning into an independent and intensively operating sector. Novelty. The scientific novelty consists in the definition of practical levers aimed at the development and virtualization of instruments and mechanisms of the financial market in the conditions of a modern digital society. Practical value. The practical value lies in the fact that, based on the study of the financial market of Ukraine, the main mechanisms in which the latest financial technologies are used and the main prerequisites for their development in the context of digitalization of financial flow management tools on the market were determined. The results of the conducted research can be used by modern researchers and practitioners in the process of development and modernization of levers for raising the level of the financial market of Ukraine.

The advances in science and technology have benefited many industries. In recent years, we have witnessed the rapid development of financial technology. All of them worked hard in this area, such as Amazon, UPS, and Wal-Mart International. In China, leading e-commerce platforms such as Alibaba and Tencent actively provided services to SMEs in their ecosystems; Taiwan also make efforts to develop it. The emergence of networking account scientific and technological AMIS provides various payment companies, lending platform, financial robots. Although Taiwan’s innovation industry faces many restrictions on its development, it will still go through it. Therefore, Taiwan has continued to update laws and regulations related to financial technology. The latest rule “Financial Science and Technology Development and Innovation Experiments Regulations” regards the development of Taiwan’s financial technology. FinTech has gradually replaced the traditional financial service model. Through mobile payments, cloud platforms, and artificial intelligence, the technology industry has gradually penetrated into the financial industry. We are willing to make more progress in Taiwan’s financial technology to deepen the understanding of FinTech as a study.