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Fintech: Digital Transformation in Finance
- 1 University of Southampton
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Abstract
This paper provides an overview of the rapidly expanding fintech sector and its impact on traditional financial services. Fintech has emerged as a customer-centric business model in response to the shortcomings of conventional financial services during the financial crisis and COVID-19. The fintech industry has created prospects in a variety of areas, including blockchain (specifically cryptocurrencies), robo-advisors, online payment services, and peer-to-peer lending platforms. However, the quick expansion of fintech also comes with risks, and investment decisions must be made carefully, considering project duration and volatility. Risk management is crucial to preserving financial stability, and legal oversight is necessary. Machine learning and deep learning techniques can be employed to recognize and mitigate these risks. Banking institutions must take precautions to protect customer data and manage unforeseen operations. The fintech sector has the potential to transform the financial industry while maintaining long-term financial health through a balance of innovation, regulatory monitoring, and financial stability.
Keywords
blockchain, robo-advisor, online payment, P2P lending
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Cite this article
Wang,L. (2023). Fintech: Digital Transformation in Finance. Advances in Economics, Management and Political Sciences,40,22-27.
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Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development
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