The definition of this term can be given as follows: financial technologies are modern technological projects in the financial market that provide financial services to the population in a convenient and simplified form. In 2022, most companies have corporate banking software, this allows you to connect the banking service to your business. It is very convenient and the client, cooperating with you through the bank, the intermediary knows more confidence.
There are currently two opposing opinions:
1) experts adhere to the first opinion, saying that new financial technologies are shifting commercial banks to the background, occupying a significant market share with their projects;
2) the second opinion says that fintech projects do not compete with banks, but work with them in alliance, creating innovative products for them to support the stability of banks in new technological
conditions.
In banking, there are several areas of activity that are under threat of replacement by new financial players. Consider some fintech startups in these areas.
So, one of them where banks could lose 40% to 60% of revenue by 2025 is consumer finance. In monetary terms, the loss of profits may amount to 274 billion dollars. This direction is considered the most vulnerable, so
how traditional depository and credit services such as issuance of general purpose loans, storage of securities certificates, accounting and transfer of rights on securities are being replaced by new financial technologies.
Microloans are small loans. Unlike bank loans, for the provision of this kind of service, the client does not need guarantors and collateral, and does not require a large package of documents.
Information technology and modeling in the financial sector
The world of computerization, which helps in everyday life, getting rid of a lot of paper work and reducing time, does not stand still. More and more new innovative projects are being introduced into people’s everyday lives, because the widespread use of information technology creates the need to create something new, convenient and useful when using it. One of the areas where this need is clearly visible is the financial sector.
The financial sphere is an area of public relations where a chain of financial links is involved in the process of exchanging, collecting or distributing information.
Conclusion
The process of improving informatization is more important in the field of banking. Such great attention to banks is due to the entry into the financial market of fintech startups. These technologies provide separate banking services, and also exist as independent projects.
In most cases, the problem of bank development is external causes in relation to new technologies. It can be either a lack of funds or risk management. Therefore, Fintech can lag behind business –
banking, but rarely when they are able to overtake it and give competitive advantages over a long period of time
