In the simplest terms, “Fintech” is a portmanteau referring to the emerging 21. century technology used in the financial services sector. The application may include, but is not limited to, money transfers, fundraising, loans, mobile banking and payment transfers.

The most active areas of innovation and development in FinTech include cryptocurrency, blockchain technology, open banking, cybersecurity, RegTech (Regulatory Technology), InsurTech (Insurance Industry Technology), Robo-Advisors, Open banking and smart contracts. These terms will be explained and elaborated on further as part of my literature review.The relevance of FinTech and therefore the significance of discovering its possible impacts on both economy and society is becoming increasingly important. A report by the global management and consulting services company Accenture discovered that “global investment in financial-technology (FinTech) ventures tripled from $4.05 billion in 2013 to $12.2 billion in 2014, with Europe being the fastest growing region in the world” (Laroche-Gray, Melody, 2015).

At the rapid rate of innovation in the FinTech sector, dissecting possible influences of developments in FinTech is vital for the success of future society and economy. This Essay has two primary objectives: First, I seek to explain recent developments in FinTech in my literature review, and second, I aim to investigate the possible future hardships and repercussions that may occur due to these developments in my discussion and analysis. I will be presenting different controversial and juxtaposing opinions and attitudes towards the evolution of FinTech in order to cross-examine the possible challenges brought by these developments. One of the words most I discovered is most commonly used to describe the impact of FinTech in modern society and economy is “disruption”. It seems that the financial sector was once dominated by local bank branches and salesmen. Financial transactions have almost entirely been converted to digital-only interfaces, with mobile banking, purchases of cryptocurrency, peer-to-peer lending and crowdfunding being a mundane, every-day occurrence.

New technologies in FinTech are being developed seemingly almost daily, and it is clear that these technological adjustments have completely overhauled how the finance sector has operated in the past few years. The traditional model of businesses turning to their local banks has long been reconstructed, and is slowly but surely being replaced by more modern technologies. It is becoming increasingly cheaper to not just start a company, but also to invest and expand various companies.

The 21. century financial sector seems to be governed by machine learning, artificial intelligence, behavioural analytics and client-driven marketing. FinTech applications are able to provide distinctive data about the habit of the users, enabling targeted changes to be made in order to improve efficiency and adaptability of technologies. In oder to analyse the fields of application in which FinTech is relevant, I have identified four categories of FinTech users: banks, their business clients, small independent businesses and consumers. I will be identifying possible impacts of a selected group of current and future developments on these four categories in my Literature Review, and then gather opinions from authorities on the matter, as well as professionals in the field.


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