This article provides an extensive overview of the fintech sector's rapid evolution and its significant impact on traditional financial services due to digital transformation and the fourth industrial revolution. It highlights the growing global adoption of fintech, particularly by underserved markets, and the increasing global investment due to its disruptive nature. The study conducted a systematic review of peer-reviewed articles from 2014 to 2022 to enrich understanding of these innovations and to assess the correlation between fintech advancements and regulatory frameworks. The findings aim to contribute to theoretical constructs and provide a basis for future research, offering a detailed mapping of fintech innovations and highlighting the crucial role of regulatory environments in maintaining a fair ecosystem within the fintech industry.
This article provides an extensive overview of the fintech industry, highlighting its emergence and impact on the financial services sector due to advances in technology post the 2008 global financial crisis. The study utilizes a systematic literature review approach to identify gaps, challenges, and future research trends within fintech, covering a wide range of services including payments, crowdfunding, e-trading, e-insurance, and cryptocurrencies like Bitcoin. The authors note that despite the rapid development of fintech, research in the area is still in its early stages. They focus on enhancing understanding of fintech through theoretical contributions, offering insights from an information systems perspective, and highlighting the necessity for regulatory adaptations to address emerging issues such as moral hazards, loan defaults, and information asymmetry.
This highlights the burgeoning field of central bank digital currency (CBDC) research. Ozili outlines the motivations for and benefits of issuing CBDCs, such as enhancing the efficiency of monetary policies, improving digital payment systems, and boosting financial inclusion. The review recognizes CBDC as a central bank liability with cash-like attributes and highlights that many central banks are exploring the issuance of CBDCs due to these benefits. However, caution is advised due to the overly optimistic views about CBDCs, given the challenges in CBDC design which might not meet multiple competing goals. The review calls for more focused research on optimal CBDC designs, empirical evidence on CBDC's impact on financial stability and credit costs, and country-specific CBDC case studies. It also suggests exploring the balance between user limitations and freedom in holding CBDCs, emphasizing the need for careful CBDC design to meet changing central bank objectives effectively.
This article outlines the multifaceted nature and rapid evolution of financial technology, extending from consumer-facing platforms like mobile payments and day trading to complex back-end processes like managing bank and insurance ledgers. Key insights include the projection that the global fintech market will reach $305 billion by 2025, fueled by consumer adoption and business integration, particularly among small and medium-sized enterprises. The article also discusses the challenges and opportunities posed by fintech, including the need for robust cybersecurity measures and adaptive regulatory frameworks to manage evolving financial technologies effectively.
This article describes the fintech ecosystem as a complex network comprising banks, fintech companies, apps, and consumers, which together create a web of interconnected financial services. This ecosystem has evolved significantly with banks integrating with fintech to offer innovative services such as easier tracking of spending and investments in cryptocurrencies. The article highlights key players in the ecosystem including consumers, fintech apps, financial institutions, and data networks, emphasizing their roles and interdependencies. Three major trends shaping the future of fintech are also discussed: the transition from open banking to open finance, enhancing connectivity within the financial system, and the integration of artificial intelligence in fintech services. Additionally, it touches on impending regulations that aim to secure consumer data and foster a competitive market environment, pointing towards a future where fintech is deeply woven into the fabric of financial services.
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