Int.

J. Financial Stud. 2022, 10, 2 1 of 11

FINANCE TECHNOLOGY(fintech)

Fintech&banking
Author

Ankit kumar

Student(b.com(h)),

ARKA JAIN University,Jamshedpur,Jharkhand

Mrs Priya Raman

Hod/Professor(b.com)

ARKA JAIN University,Jamshedpur,Jharkhand

Int. J. Financial Stud. 2022, 10, 2 2 of 11

FINANCE TECHNOLOGY(fintech)

Abstract: The fintech Industry has been one of the most fastest growing industry as well as the
most prominent sector in financial sector not only has it has brought ease of financial operations
in comparison to traditional ways but also more sophisticated way moreover it helps at larger
way in giving employment as everything based on A.I and machine language .As the
technology has grown more people are getting educated not only about technology but also
financially

Keywords fintech, banking institutions intelligence technology

INTRODUCTION

entered the books a some years ago, FinTech has been an exciting and familiar topic for
research
Globally, FinTech is rapidly being used in human life in recent years.
A series of bibliometrics analyses new information on the topic even more. and research to
show how the areas of thinking have grown. Finally, the problems discussed in this study,
point out areas of research related to these new issues.
Financial technology, has grown rapidly globally, as their requirements is different as
Compared to one other nation on the development and market economy. industry list, credit
lenders, cryptocurrency for angel investors and crowd support.
FinTech is made up of three basic categories .The first is the result of continuous production
through the introduction of technology to industrial growth with the help of simple first
abacus. After the 1800s, with the introduction of the telegraph and its interaction with
international trade, financial transactions would be made worldwide using this technology.
With the growth of digital technology in all financial services technology is rapidly
changing from analog to digital. As of eg:, Barclay’s Bank was the first to bring ATMs in
1967 when it changed its electronic payment systems, making transfers between banking
institutions and the nation much easier. In 1975, a Basel Committee was established to
reduce the risk of inflation, as well as to regulate international banking relations.
Consumers expect financial institutions to perform tasks, customer service, and the amount
of card information is now required). Due to the rapid development of financial integration
that made global markets a new era, in 2008, with the Internet, when Wells Fargo
introduced e-information - banking information, and the first companies and technology
companies began to bring financial tools and services to businesses. and customer
Int. J. Financial Stud. 2022, 10, 2 3 of 11

OBJECTIVE
With the rapid growth of artificial intelligence and flexibility and the sophisticated way of
making financial transactions due to technology it has become increasingly necessary for
banks to adapt to the market and therefore need to adapt and adapt to modern systems as
no one wants to be left behind. in the race.
E-banking has become a category for all players in the industry as it is not just a fast-
growing industry but traces the history of all users of what kind of assets a person uses
and helps multi national company . tracking customer demand and maintaining their
inventory properly. Today everything a consumer wants is fast so it helps every company
and any player in the industry no matter what goods or services they provide can be done
very quickly this is because the customer makes a payment or online recording where
they come from and what they do. they also pay what they pay
Financial technology is a very useful 4-hour generation tool as it makes transactions
much easier compared to traditional automated trading methods it is a dynamic financial
activity and can offer a new and less expensive product in its financial sector from lead to
asset management to portfolio. advice in the banking and capitalist sector and in the
fintech sector is a very small comparison with the size of financially viable assets in the
financial market and lags far behind compared to China and China.

• Smart chip technology

Fintech have had major contributions in Atm securities as every time one makes a transaction
theres a otp in other word the one time passwords which makes transaction not only secure
but also but reduces chances of having caused mistakes
It gives customers cards gets stolen the thief will unable to do anything with it

• Biometric sensor

Finance technology has not only brought the ease of doing transaction but have have also
made remembering of passwords as by biometric means password could be remembered as is
fingerprint scanner ,face recognition system and through a.i saved in google

• E-wallets

G pay ,PhonePe ,Paytm and many more have helps in p2p transactions not only that but helps
to make payments of airline tickets booking railway’s ticket booking and movie tickets
bookings very easy at one go also payments of utilities services

Risk of increased information asymmetry

Int. J. Financial Stud. 2022, 10, 2 4 of 11

The main danger of information asymmetry lies in the code that supports digital finance.
While self-denial proves the need for certain financial and legal knowledge, the ability to
know whether a code, public or otherwise, does what it promises is a potential obstacle. This
is especially so when code (or proof of work or acquisition of consent, as contained in
distributed ledger technology [DLT]) replaces a third party. This appears to be more than a
perceived risk as indicated by the first grant (ICO), which would provide an opportunity to
govern and protect investors from electronic code (“smart contracts”) instead of the usual
legal procedures for non-digital IPOs. In fact, Cohney et al. (2018) surveyed the top 50 ICOs
in 2017 on promises4 made by promoters and found that code and disclosures are often not
the same.
One of the key features of fintech compared to traditional finance is that it operates
separately, which includes spatial segregation features, abbreviated as DLT. While the
additional challenge of digital information is undeniable, the impact of zoning is
controversial. On the other hand, geographical segregation may increase information
asymmetry, e.g., when comparing ICO with IPO. At least in its early days, ICOs often
foresaw a set of slightly restricted rules for an information provider and did not include a
subordinate author who might soften any asymmetries. In contrast, in an IPO, it is usually
mandatory to file a registration statement in the form of a publicly available prospectus, as
well as a private administrator's file.5 On the other hand, distribution may, over time, reduce
unequal information. following Hayek's traditional argument (1945) that segregated markets
process information better than a centralised economy and thus become more efficient
resources. It is too early to say that the emergence of digital forums will ultimately help to
spread sensitivity and deepen interaction.

Opportunities to Reduce Information Asymmetry

Digital finance can also reduce information asymmetries in a number of ways, at least under
the investment rubric. Some fintech programs are primarily aimed at not only reducing costs,
but also reducing information asymmetries in providing access to financial products to a
wider audience. The asymmetry of information can be reduced in both the supply and the
sides of the demand for financial services.
On the demand side, proximity to a well-developed trading area was often a determining
factor in the range of financial products and services, as well as its competitive price. Digital
technology has evolved, as consumers in remote and undeveloped regions are empowered to
enjoy equal access to financial products and services and information that allows for less
cost-effective comparisons, and to easily create credit history, for example, through their
mobile phones. . In regions without banking assets such as bank branches, these
developments have accelerated and impacted, in some ways even the emerging traditional
markets, with the People's Republic of China as a frequently cited example (Digital Finance
Center 2018; Luohan Academy Report 2019).
Int. J. Financial Stud. 2022, 10, 2 5 of 11

REVIEW ON LITERATURE

Fintech used to be a back office support function now it’s defining an industry
Fintech used to be a back office support function as people did not use to know the use of
Internet as compared to this time not only because the lack of dependency of knowledge
about how to use the online or the financial technologies online transactions or the financial
tools were limited only to the very few people Asian more the knowledge has grown how to
use the financial tool The industry has become the fastest growing segment across all the
financial institution before the fintech became the knowledge of all people you used to
depend only on the traditional way of transaction as they used to feel safe and secure but with
the growing knowledge fintech

• The impact of digitalisation

Digitalisation is along all chain drawn is being applied to the process of assessing and
serving customers more speculative used machine learning and language processed to create
to chat and speech in place of people having interaction with a live agent search straight
forward auto mation has result’d in massive competition among industries and sectors as the
pivot cross sell there services for eg the best e-lender as of now became a competitor with
the best e-payment app to give the best e-bank account

• Direct to consumer
In a banking institution what happens is a bank appoints an an employee which become a
middleman in solving or servicing you according to your need what that financial institution
can give to you but whereas in fintech your problems or your needs are served directly by the
fintech company itself as they stand no middlemen or agent or employee as it all works on
the artificial intelligence the machine language that has been put it into them in artificial
banking it takes time to make a transaction open an account transfer money but due to the
artificial technology used by the fintech company bank accounts could be open without any
paper And within minutes

• Why fine tech is popular?

Fin tech has become very popular at the recent days because it gives each and every person
the ease of going wherever they want to without even having to carry any kind of monetary
monetary asset as because everyone carries a cell phone at this modern day industries and
with with because of the fintech companies anything they want to buy or pay want to get can
be done by just a click on the phone
Int. J. Financial Stud. 2022, 10, 2 6 of 11

FINDINGS

As the financial sector grows new features come with a new set of tools and people get more
education on how to use technology the future of a financial institution will largely depend on
how good a person is in his or her financial technology as a person. becoming more
accustomed to doing online transactions Rather than being a traditional way in which more
public information about how to use financial technology will not depend on a common
banking system like everything they had before. The average person can be made by one
person and as it is not just financial technology but in all parts of the FMCG growing more
online than in a traditional store it will be a huge benefit to the consumer because fintech
company offers different programs to consumers to buy the product and get some discount
but financial technology growth too. it is growing to explore the skills gap according to more
than one trillion independent research on the cost of financial services may be replaced by
machine learning and AI by 2030 although there is still great potential for successful banking
and financial performance as 75% of financial services. organisation’s are creating activities
related to the new technology 42 post to strive to fulfil these roles of studying foreign
banking and online finance. Future fintech could improve access to credit for small and
medium-sized businesses such as SMS and provide services to remote areas with another
common borrowing model of the Chinese company fintech anti-anti Group A which had a
significant impact on consumers and entrepreneurs accessing credit.

Research gap

Fintech's position in the community is growing more important than ever, thank you very
much
Covid19. Almost all of us have used fintech in some way, even online
payment systems like PayPal and Square or stock trading apps like Robin hood or Acorns.
Money is the most important factor in any company, so it makes sense to think about it
fintech as it has no limit in our daily lives. It just shines, it starts
through the provision of additional digital transaction services, the development of
baking process, as well as savings on digital wallets for businesses.
Fintech companies ensure that all transactions made on their platforms are secure,
which includes all customer data and personal information. In fact, many fintechs do
introduced key features that help protect users in an unprecedented way. Since then
cost notices on location-based security. Fintech companies are doing a very good job
it keeps you and your knowledge safe.
Compared to the past, it also helps people make informed decisions (old time).
Openness also helped to improve loyalty. Customer expectations, VC bulk,
financial support, low entry barriers, and rapid technological change are all factors
Int. J. Financial Stud. 2022, 10, 2 7 of 11

which contributes to FinTech’s rapid growth. These dynamics are primarily responsible for
them
development of a situation where customers are accustomed to fintech. It's over
half the world's population still use conventional banking method

Research methodology

Sample 1
of secondary quality data. Based on the similarity of the content, the research papers were
selected for review. A systematic review pattern is followed to analyse data from different
articles and journals. The analysed data is filtered so that the research can make a significant
contribution to this domain.

Sample 2
A research paper is a research study to find out more and information about it
women as negotiators. The study uses a systematic review method for the collection of
secondary data. Several papers and research articles are thoroughly researched to conduct
research.

Sample 3
A randomised controlled trial of women in control demonstrates this as a pilot study. A
systematic review approach is used to obtain research information. It is based on the analysis
of secondary data collected from various articles and journals. Secondary information quality
research was conducted to obtain relevant research results
Int. J. Financial Stud. 2022, 10, 2 8 of 11

CONCLUSION
Fintech has been centre of most startups these days either or the other way any platform as of
now must have fintech’s involvements as they could not only traditional way for payment of
there services or goods they deliver. Not only this with what an ease that it have brought for
example paying college or school you don’t need to stand in line .
Can complete transaction even on holidays of financial institutions. Also helps to give
reminder for subscription or payments that are made on recurring basis every month
Moreover the bigger picture that helps the central government to keep track of money in
market calculate rise in consumers purchasing capacity rise or fall in gap etc. Managers and
managers are faced with the daunting task of equipping them to remain ready to innovate and,
at the same time, to demonstrate total tolerance for criminal behaviour. Like previous non-
digital forms, fintech rules require the promotion of a clear set of principles and guidelines to
be applied. The main common objectives of non-digital financial management such as
protecting investors and consumers, market integrity, and safeguarding financial stability,
maintain their compliance with fintech. In the early days and small volumes of fintech,
indifference or waiting and seeing ways dominated. In cases where the control seemed
appropriate, however, the same functions were treated in the same way to limit the arbitrage
compensation of the control. At the same time, regulators will be better informed to check
duck typing limits and aim to identify early on new tasks that may require different
technically sound financial controls. Applying the benefits of developing new financial
products, while at the same risk, will enable all relevant stakeholders such as regulators,
fintech industry, and academia to engage in open dialogue to ensure a common understanding
of fintech activities and business models, as well as to promote and implement regulatory
measures, respectively.

SUGGESTIONS AND RECOMMENDATIONS

Whats up next for fintech companies must to be solve the technical glitch problem that makes
transactions stuck
The interface could be made quite more simple so that the one with less knowledge can also
use it
Also fintech must focuses on security as financial details of one is confidential to them
Sometimes firm gives such information to others which breaches the privacy
Another major thing that these fintechs must look on ti is

• customer-directed service

A major factor contributing to the growth of successful financial technology companies each
year is undoubtedly the customer-oriented services they provide. Getting started should
satisfy customers with fast and effective digital age solutions. Fintech Startups should be
Int. J. Financial Stud. 2022, 10, 2 9 of 11

open to new technologies within the scope of sustainability, and these startups should
continue to delight their customers using new technologies.

• Easy Access and Quick Integration

New technologies such as artificial intelligence, blockchain, and sophisticated algorithms are
areas where financial technology companies are beginning to adapt. New technologies
provide companies with a variety of opportunities, such as preventing potential revenue loss,
reaching the right customer, and making informed decisions.

Fintech startups should be easily accessible to customers in order to grow. They need to be
able to provide attractive services to their customers with simple and fast services that meet
customer expectations. However, Fintech companies that provide B2B services should
provide fast and reliable integration between systems.

Fintech starts in banks, not competitors. The introduction of financial technology will have
the potential to grow if they support the services they provide with easy access to the banking
sector and faster integration.

FUTURE DIRECTIONS

Financial technology, or FinTech for short, is one of the most exciting - and fast-growing
areas - in the global business today. Although the definition may be simple, products and
companies that use the latest digital technologies and online technologies in the banking and
financial services industries, how they are used, and their impact on consumers are extremely
complex. In fact, in a relatively short period of time, the emergence of a new generation of
FinTech has had a profound effect on the way we do business, exchange as customers, and
think about our financial future. Among other things, it significantly narrows the lines
between business services, allowing banks, advisors, and technology providers to offer
almost the same services.

Drivers of innovation

Different things apply when we look at FinTech development.

Advances in technology have changed the way we do almost everything in our daily lives.
Technologies like IoT, AI, blockchain and cloud computing are the core of FinTech
companies.

Consumer behaviour , particularly in generation , Y and Z, has changed and pre-existing

financial systems in some markets are not in line with social changes, allowing technology to
allow players to enter the market.

Entry barriers have decreased as technology has advanced, forcing financial institutions to
change or lag behind. It has opened new doors to start a challenge, like in the banking
industry, targeting consumers with different needs and behaviours.
Int. J. Financial Stud. 2022, 10, 2 10 of 11

Advanced access to mathematical knowledge, practicality, and cloud computing allows

companies to identify trends - and become familiar with them - very quickly.

Investment in the sector has been modest and continues to grow rapidly, which ensures that
we will see further development soon.

New relationships with money

FinTech has changed the way people think about money and real-time, “Moneyless” digital
businesses are ubiquitous, forcing reluctant consumers to use digital trading with
governments to discuss whether they discriminate against them or simply improve.

Requiring consumers to pay for goods and services electronically instead of using cash is just
the first step. The Amazon Tech giant is at the forefront of integrating an online shopping
account with the usual knowledge of brick and mortar in nine fast-moving stores to test their
new concept. Customers simply grab what they need, leave the store, and items are
automatically charged to their Amazon account. Ideas like these are likely to shape the future
of buying.

Payment transfer though smartphones or smart watches are another example of the
development of FinTech that many consumers have embraced today. Although PayPal has
been in the game for a long time, newcomers like , TransferWise and Zelle are changing the
way we share common currency such as split debt and sell things to friends. Add to that the
proliferation of fundraising sites like GoFundMe that allow almost anyone to create an easy
way for those who care about the person, the situation, or cause them to donate a few clicks.
New technologies, such as machine learning / intelligence, predictable behavioural statistics,
and data-driven advertising, will eliminate speculation and financial decisions. "Learning"
apps will not only learn users' habits, often hidden from them, but will also involve users in
learning games to make their own decisions about spending, ignorance and better savings.
Fintech is also a new adapter for automated customer service technology, using chatbots and
an AI interface to help customers with basic functionality and reduce staff costs. Fintech also
has the ability to combat fraud by using information about payment history to mark additional
payments.

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