As a Rival to Traditional Financial Institutions, an Innovative Financial Application: Fintech

Abstract

It is undeniable that the rapid growth of technology is changing financial systems on a global scale and financial services must revise their services to cope with the changes in technological services in the world. It is a fact that one of the concepts that has become popular in the financial world today, especially in recent years, is Fintech. The term “Fintech” is formed by the combination of the English words “finance” and “technology” as a reference to software, hardware, mobile applications and technologies created to automate as well as make classical financial applications functional. Here, the main target is to provide proactive, efficient, fast and reliable financial solutions by using technology. By doing so, individual users can receive personalized services for themselves and have the opportunity to complete their transactions in a very short time. With Fintech, banking and financial services have become much more fluid and accessible.

By using technology, users can now use automation to speed up processes that could previously be performed by a person. As well as these advantages, the most important disadvantages of Fintech include having insufficient capital, lack of adequately equipped personnel, and not having sufficient resources and corporate reputation to provide the trust expected by regulatory legal institutions on the state side. When they first emerged, although Fintech companies were a sub-sector that supported the software and hardware needs of banking and finance companies with the technologies they provided, they have evolved over time and become a formidable rival that the banking and finance sector operating with classical methods must deal with. The present study aimed to provide conceptual data on the concept of Fintech.