Financial Technology in Banking Industry: Challenges and Opportunities
e International Conference on Economics and Administrative Sciences ICEAS2018
18 Pages Posted: 14 Mar 2019
Date Written: April 12, 2018
An overwhelming interest is growing in financial technology (henceforth: FinTech) in recent years. This contemporary financial phenomenon characterized basically by heavy use of technology in communication, some called it network economics. FinTech service encapsulates – but not restricted to – wide range of financial services capitalising from the explosive developments in technology, it includes the payments, clearing and settlement category, followed by credit, deposit and capital raising services. Despite the fact that the FinTech players attract the global attention from the financial industry leaders and legislators, the issue as a subject of study still in infant stage, little scientific research has been conducted yet. The paper aims at first place to shed light on this wave of development in financial industry that combined with high technology, it aims also to clarify the role of FinTech in the financial industry in general and banking sector in particular. The paper obtained its goals in two main phases, firstly; background and definition of the FinTech, in addition to outlining the current FinTech market segments and landscape and some alternative financing FinTech platforms will be discussed. In the second phase, we will identify the influence of FinTech on banking industry and the required response to face it. The paper suggested also some future research proposals about the effect of FinTech on the financial industry and banking sector in the Arab countries.
Keywords: Financial Technology, Banking Industry, Platform Competition, Network Economics.
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