Authors: Vittal Jadhav
Abstract: The move to reshape the financial services offering has greatly benefited from the appearance of Financial Technology (FinTech), namely for consumers and retail investors. The latest wave of FinTech innovations, which include digital payment solutions, robo-advisory platforms, peer-to-peer (P2P) lending, and blockchain-based services, has drastically changed how individuals interact with money and investments. This paper considers the manifold opportunities that FinTech affords (financial inclusion, efficiency, personalization, and cost-cutting) in contrast to the corresponding risks (cybersecurity, data privacy, regulatory, and market volatility). An overview of the literature on FinTech prior to 2020 is contextualized, and the methodology, which compares case-based data together with qualitative analysis, is used to assess the services. It is supported by figures, flow charts, and comparative tables. Beyond the democratization of FinTech, the results show the power that FinTech offers by way of economic empowerment and the systemic vulnerabilities it creates when it fails. The paper suggests a balanced regulatory playing field alongside best practices for leaders, FinTech providers, and other stakeholders to responsibly tap FinTech’s potential.
