1. Introduction

Fintech and Digital transformation refers to the use of technology to provide financial services, which have been major trends in the financial industry in recent years. At its core, fintech aspires to help organizations, company owners, and individuals manage their financial operations, procedures, and lives more effectively. Specialized software and algorithms, which are available from both desktops and cellphones, are used to do this. It divides financial services into independent products, many of which are more user-friendly. By fusing technology with streamlined products, fintech companies may increase operational efficiency and lower transaction costs. The traditional banking, trading, financial counselling, and product industries were disrupted by these amazing developments. This caused a mentality shift towards thinking digitally first and prompted some traditional institutions to make significant investments in similar products. Moving on to New Fintech and New Technologies, cutting-edge innovations in the fields of data-driven marketing, predictive behavioral analytics, and machine learning/artificial intelligence (AI) are poised to completely change how we handle our finances. Users of learning-based applications can engage in learning games to enhance their financial decision-making processes in addition to forming healthier spending and saving habits. Fintech has also embraced automated customer service technology, which uses chatbots and AI interfaces to assist clients with basic tasks and lower staffing expenses [1]. Fintech is also being used to fight fraud by using transaction history to spot questionable activities. Business-to-business for banks, B2B bank clients, business-to-consumer for small firms, and consumers are the four primary groups of users of fintech. As a customer, getting older enhances your chances of understanding fintech and being able to define it clearly. Gen Z and millennials are the primary target groups for consumer-focused fintech due to their size and rising earning potential.

To encourage financial stability throughout the whole global financial system, an international organization called the Financial Stability Board (FSB) was established in 2009. In addition to identifying financial system vulnerabilities and creating policies to mitigate them, the FSB is in charge of coordinating and overseeing the implementation of regulatory reforms in the financial sector. Promoting efficient risk management techniques among financial institutions is one of the FSB's main responsibilities [2]. For example, the Basel III framework for banking regulation, which specifies minimum capital requirements and other risk management criteria for banks, is one example of a framework for defining and supporting global standards for risk management. Financial stability depends on effective risk management since it can assist to identify and reduce possible hazards before they become systemic problems [3]. The FSB assists in ensuring that financial institutions are better prepared to withstand economic shocks and other disturbances by encouraging solid risk management techniques. Additionally, FSB is vital to crisis management in addition to encouraging risk management measures. The FSB works with national authorities and international organizations to guarantee an efficient and coordinated response in the event of a financial crisis or other systemic event. This may entail working with central banks and other regulators to establish policy solutions that address the crisis' underlying causes, as well as giving advice and support to the impacted institutions.

2. Blockchain

Blockchain is a distributed digital ledger technology that's employed to keep track of transactions in a safe, open, and unchangeable way. It is made up of a network of computers (called nodes) that work together to maintain a shared database of transactions that are organized into blocks and connected in sequential order. Each block consists of a series of transactions and a unique digital signature (hash) generated from the block's contents. A chain of blocks is created that cannot be altered without the network's consent thanks to the inclusion of each block's hash into the one after it. However, hackers are trackable despite being in “anonymous” mode, due to their wallet address which is published in the blockchain. Blockchain technology achieves security in several ways. First, new blocks are added to at the end of a blockchain, chronologically and linearly. This means that after a blockchain is added, no changes can be made. The hash of the block is affected by any changes to the data. Each block contains the hash of the one before it, thus if one changed, the following blocks would as well. The network would reject a modified block because the hashes did not match. Blockchain technology has the potential to completely transform the banking sector by enabling quicker, more secure, and more transparent transactions, reducing costs, boosting identity verification, automating back-office procedures, and enhancing the client experience overall. Wider acceptance is hampered by regulatory concerns, interoperability issues, scalability issues, and security issues, although these issues can be resolved with careful planning and implementation.

The popular cryptocurrency known as Bitcoin was created in 2009 by an unidentified developer or group of developers going by the moniker Satoshi Nakamoto. It can be purchased via various cryptocurrency exchanges. It is built on blockchain technology and runs on a decentralized network, which means that no central authority or third party has taken part in it [4]. By network users known as miners, who are rewarded with freshly created bitcoins in exchange for their work, bitcoin transactions are validated and recorded on the blockchain. A decentralized ledger system called a blockchain is used to create, distribute, trade, and store Bitcoin, in contrast to traditional money. The financial sector has been affected by Bitcoin primarily. By offering an alternate method of payment and value transfer that doesn't rely on third parties like banks or financial organizations, Bitcoin, a decentralized digital currency, has the potential to upend established financial systems. Although it still has scalability issues and high transaction fees, Bitcoin also provides transactions that are quicker and cheaper than those made using conventional payment methods. The technology sector has also been impacted by Bitcoin. By enabling safe and open record-keeping, smart contracts, and other cutting-edge applications, the blockchain technology that underpins Bitcoin has the potential to transform a number of different industries. Another important factor in how it affects the currency is decentralization. Decentralization enables it to be free from centralized control or middlemen, which is one of its traits. This eliminates the need for middlemen like banks and offers users more control over their money.

Non-fungible tokens, or NFTs, are assets that are tokenized using blockchain technology. To distinguish them from one another, they are given distinctive identification and metadata. It can be traded for money, cryptocurrencies, and other NFTs. There are several uses for NFTs, including digital art, gaming, real estate, etc. NFTs can be used to validate and sell one-of-a-kind digital artwork, giving creators a new source of income and purchasers proof of ownership. Additionally, it can be employed in music to produce one-of-a-kind in-game products and expensive collectibles, boosting their worth and scarcity in the game economy. Last but not least, NFTs can be used to represent ownership of real estate assets that are physically present, offering a more transparent and efficient way to transfer ownership and keep track of property rights [5].

3. Robo-advisor

The term "robo-advisor" refers to a digital platform that provides automated, algorithm-driven financial planning and investment services with little to no human supervision. In the financial sector, it can be said that this technology has disrupted the conventional model of financial advising, which entailed a human advisor giving clients tailored investment recommendations. Instead, robo-advisors utilize automation and algorithms to provide clients with portfolio management and investing advice. A typical robo-advisor will ask questions about your financial situation and future goals via an online survey. The information is then utilised to execute automatic investing on your behalf and to offer recommendations.

New clients are onboarded by robo-advisors as the first step in the decision-making process [6]. During this process, details on the client's financial situation, investment goals, and risk tolerance might be acquired. The robo-advisor utilizes an algorithm to create a portfolio that is suited to the client's needs and preferences based on the data gathered during onboarding. Age, income, investing goals, and risk tolerance of the client are just a few examples of the variables that the algorithm considers. The majority of robo-advisors use modern portfolio theory (or a derivation thereof) to create passive, indexed portfolios for their clients. Robo-advisors monitor portfolios after they are constructed to ensure that the optimal asset class weightings are maintained despite market movements. Robotic advisors achieve this by rebalancing bands. Based on the client's choices and the algorithm's suggestions, the robo-advisor selects investments for the portfolio. Stocks, bonds, exchange-traded funds (ETFs), and other assets may be included in the portfolio. The robo-advisor continuously checks the portfolio and adjusts it to preserve the target asset allocation as needed. To rebalance a portfolio and get it back on track with the target allocation, you buy and sell securities. Each asset class or each securities has a goal weight and a matching tolerance range. To reduce the client's tax bill, the robo-advisor may potentially employ tax optimization tactics. Harvesting tax losses, controlling dividend income, and other strategies may be used to achieve this. Lastly, it updates the client on the performance of the portfolio on a regular basis. Information on returns, costs, and other metrics might be included in these reports.

In a variety of industries, including banking, healthcare, and education, decision-making can be done using professional judgment or automated advice. Making conclusions with the knowledge, experience, and intuition of a human expert is known as professional judgment. The decision-maker applies their knowledge to the issue at hand, taking into account surrounding circumstances and rendering a judgment based on their specialized education and experience [7]. Professional judgment is an adaptable method that can take into consideration variables that data or algorithms could miss and can adjust to specific scenarios. On the other hand, algorithmic suggestions involve making choices based on data and algorithms. Algorithms employ statistical models and previous data to find trends and forecast future results. When there is a lot of data to analyze or when decisions must be made fast and accurately, algorithms are frequently utilized to provide suggestions.

Robo-advisors are inexpensive substitutes for conventional advisors. By eliminating human labour, online platforms may offer the same services for a much lower cost. Robo-advisors are additionally easier to use. You can speak with them whenever you want, provided you have an internet connection. Robotic advisors are also useful. Before robo-advisors, you needed to speak with a financial advisor on the phone or in person, describe your needs, and then wait while they executed your trades. These days, by simply hitting a few buttons, you may complete all of that while unwinding at home. Robo-advisors have been accused for lacking intelligence and empathy, but, due to the present technology capabilities and limited human presence, where expert judgment may adjust to particular situations and can take into consideration elements that may not be recorded by data or algorithms. Professional judgment can also consider the particulars of a given circumstance, such as any pertinent cultural, societal, or personal aspects. Last but not least, using professional judgment enables a human connection between the decision-maker and the subject of the evaluation.

4. Online Payment

Online payments are defined as electronic funds transfers made via the Internet, usually between a customer and a business. Other options for making these payments include credit and debit cards, banking websites or applications, and online banking. Which online payment method you offer and accept will depend on the requirements of your individual business and the preferences of your target audience. Online payment services have reached a mature stage since they have been around for a while and have integrated themselves into the digital economy. Since its debut, online payment services have changed substantially, and new features and technologies are always being created to improve security, speed, and convenience. Online payments are now a sophisticated and essential component of the digital economy. They provide many advantages, including ease of use, quickness, security, affordability, and accessibility worldwide. Since its inception, it has substantially changed, and new features and technologies are always being created to increase security, speed, and convenience. The emergence of mobile payment technologies, the adoption of blockchain technology, the use of cryptocurrencies, the integration of online payment services with other digital platforms, the use of advanced security measures, and the expansion of online payment services into new markets are some of the major developments that have helped online payment services mature. Online payment services are anticipated to continue to expand and become even more complex in the years to come as technology develops and advances.

Online payment systems come with a host of advantages, including speed, convenience, and accessibility on a worldwide scale, but their usefulness is also heavily dependent on their efficiency and security. Online payment services deal with personal and sensitive information, such as personal and financial data, so security is a major concern. Online payment systems use a range of security methods, such as encryption, secure sockets layer technology, and two-factor authentication, to safeguard customer data. To stop fraudulent transactions, they also use fraud detection and prevention techniques like real-time monitoring and machine learning algorithms. Efficiency is another key consideration for online payment services because customers desire smooth, efficient transactions. Online payment services use a variety of technologies, such as real-time payment processing, immediate fund transfers, and automatic payment reconciliation, to enable the efficient processing of transactions. Since the industry has already matured, there is another option to connect with the cryptocurrency payment platform, and invest, which is called the investment model. An investment model is a framework with various parts that investors use to decide what investments to make. By balancing risk and return, fundamental elements like asset allocation, risk management, and portfolio optimization can assist investors in reaching their financial objectives [8]. Asset allocation involves splitting up a portfolio of investments among several asset classes, depending on the risk tolerance, financial goals, and time horizon of an investor. Portfolio optimization comprises choosing assets with the potential to deliver the best risk-adjusted returns, whereas risk management entails recognizing and reducing hazards related to investing. Significant components of it also include performance monitoring and rebalancing, which include assessing the portfolio's performance over time and making modifications as needed to preserve the target asset allocation and risk profile. In general, an investment model offers a systematic approach to investing that may aid individuals in reaching their financial objectives and making educated decisions based on their particular circumstances.

5. P2P Lending

Online marketplaces known as peer-to-peer (P2P) lending platforms link borrowers with investors or lenders. These online marketplaces employ technology to connect lenders and borrowers according to their requirements and preferences. P2P lending systems let borrowers acquire loans from several lenders rather than just one, in contrast to traditional lending organizations. With this strategy, borrowers may receive finance at reduced interest rates and lenders can increase the return on their investments. P2P lending platforms are made to link borrowers and investors or lenders, giving borrowers a quick and easy option to acquire credit and giving lenders the chance to make more on their investments. P2P lending platforms must have a user-friendly, open, and secure platform in order to be successful. The evaluation of credit risk is also essential since it enables lenders to assess borrower creditworthiness and make wise investment choices. Credit scores, financial statements, business plans, social media and online reputation, collateral, and other quantitative and qualitative indicators are frequently used by P2P lending platforms to evaluate credit risk. By leveraging technology and innovative credit risk assessment methods, P2P lending platforms can provide borrowers with access to financing at lower interest rates and offer lenders a range of investment options to meet their preferences and investment goals. Due to a number of issues, the P2P lending industry might be viewed as being very inefficient. The absence of industry standards is a significant contributing element. P2P lending platforms do not follow set underwriting standards or interest rates, in contrast to traditional lending organizations. Due to this, it is challenging for investors and borrowers to compare loans across several platforms. The lack of liquidity is another aspect of the P2P lending industry that is inefficient [9]. P2P lending sites often offer long-term loans with one to five-year payback terms. This implies that until the loan is fully returned, the lenders may not have access to their money, making it challenging for them to modify their investment portfolio in reaction to changes in the market.

Regulation of P2P lending platforms is important for protecting investors and borrowers, promoting fair competition, standardizing industry practices, and mitigating systemic risks. The importance of regulation can be seen in the different approaches taken by countries such as China and the UK [10, 11]. In China, the P2P lending sector grew rapidly without adequate regulation, leading to a high number of fraud cases and defaults. In 2018, the Chinese government implemented strict regulations to address these issues, requiring P2P lending platforms to obtain licenses, limit loan amounts, and disclose more information to investors. While these regulations have led to the consolidation of the P2P lending sector in China, they have also helped to protect investors and promote the long-term sustainability of the industry. The investment model of P2P lending is becoming increasingly popular among investors as it offers the potential for higher returns than traditional investments. However, investors need to pay attention to the regulation and policies of P2P lending platforms, as the industry is still relatively new and untested. Without proper regulation and policies, investors may be exposed to risks such as fraud, default, and market instability.

6. Conclusion

Fintech and digital transformation's futures are expected to be influenced by a number of things, including technological advancements, shifting customer tastes, and regulatory changes. The financial services sector is projected to see an increase in the use of AI and machine learning as these technologies enhance risk management, fraud detection, and customer service. The simplicity of digital payments and the increasing use of mobile devices will undoubtedly promote the growth of digital payment systems. Blockchain technology has the ability to revolutionize the market by enabling secure, open, and direct transactions without the need for middlemen. Balancing innovation and financial stability is a complex challenge that requires ongoing collaboration and communication between financial institutions and regulatory bodies. Financial institutions and regulatory agencies may work together to avert systemic risks, preserve public confidence in the financial system, and ensure innovation is pursued responsibly and sustainably.