The Role of Fintech Firms in Contemporary Financial Sector Development

Abstract

The development of new technologies provided by Information and communication technologies, robotics, artificial intelligence and their application have an essential influence on the business model of the financial sector companies. Changes are taking place through a variety of technology processes in different industries of the financial sector such as payment systems (including cryptocurrencies, smart chaining), customer acquisition and management, crowdfunding, P2P lending. The aim of the research is to study the role of Fintech firms in the changes in the financial sector landscape, as well dynamics of changes in investments in Fintech by regions and by segments. This study provides empirical evidence on the development of alternative financial services and their role in the development of the financial sector. Based on the research results there is strong evidence about statistically significant difference between investments allocated to Fintech firms by regions and vintage. There have been changes in the regional distribution of investment, with North America (85-90%) dominating in the first years of the decade, and Asia and the Pacific accounting for more than a third and Europe for more than 20% of total investment in recent years. Contemporary statistics data analysis also indicates different trends in investments in various Fintech segments by years.

Тенденції Розвитку Банківської Системи України В Умовах Воєнних Дій Та Глобалізаційних Упливів

“…For many researchers (Kharlanov et al, 2022;Mavlutova et al, 2021;Nandiwardhana et al, 2022) it is now clear that information technology can facilitate the work of banking institutions, increase the efficiency of interaction between bank employees and customers, and provide easier access to information about banking products. In addition, there are researchers (Mavlutova et al, 2023;Wang et al, 2021) who are considering the problems of the need to retrain employees and train them continuously to be able to interact with modern information technology in the banking industry.…”

Digital Transformation as a Driver of the Financial Sector Sustainable Development: An Impact on Financial Inclusion and Operational Efficiency

“…Therefore, there is extensive literature available on this topic, which were studied by Rupeiga-Apoga, Lace, Mavlutova, Andriuskevicius, Volkova, Arefjevs, Spilbergs, Natrins, etc. [13][14][15][16][17][18][19]. Other authors including Tambovceva, Uvarova, Romānova, Rupeika-Apoga, Atstaja, Brizga, and Titko have researched various aspects of sustainable development of Baltic countries [20][21][22][23].…”