Fintech, and Blockchains Trends in The Financial Sector E-Book
35,62 €
Mehr erfahren.
- Herausgeber: Bentham Science Publishers
- Kategorie: Fachliteratur
- Sprache: Englisch
This book presents a review of the transformative impact of fintech and blockchain technologies on the financial industry. The book aims to bridge the gap between technical jargon and practical understanding, making it accessible to a wide audience. It begins by introducing fundamental concepts and tracing the evolution of these technologies. Subsequent chapters explore specific applications such as digital payments, lending, and investment management. The final sections address regulatory challenges, security concerns, and the future outlook for fintech and blockchain.
Key features of the book include a I) clear and concise explanation of complex technical concepts, making them understandable for both industry professionals and general readers, ii) real-world case studies and examples to illustrate the practical applications of fintech and blockchain, iii) insights into the regulatory environment and potential risks associated with these technologies and iv) a forward-looking perspective on the future of finance,
Readers will understand the intricacies of blockchain, including its underlying technology, smart contracts, and potential use cases in the financial sector. It also helps readers to anticipate industry trends.
Readership
Professionals in the financial sector, general readers and tech enthusiasts.
Das E-Book können Sie in Legimi-Apps oder einer beliebigen App lesen, die das folgende Format unterstützen:
Seitenzahl: 269
Veröffentlichungsjahr: 2024
Ähnliche
BENTHAM SCIENCE PUBLISHERS LTD.
End User License Agreement (for non-institutional, personal use)
This is an agreement between you and Bentham Science Publishers Ltd. Please read this License Agreement carefully before using the book/echapter/ejournal (“Work”). Your use of the Work constitutes your agreement to the terms and conditions set forth in this License Agreement. If you do not agree to these terms and conditions then you should not use the Work.
Bentham Science Publishers agrees to grant you a non-exclusive, non-transferable limited license to use the Work subject to and in accordance with the following terms and conditions. This License Agreement is for non-library, personal use only. For a library / institutional / multi user license in respect of the Work, please contact: [email protected].
Usage Rules:
All rights reserved: The Work is the subject of copyright and Bentham Science Publishers either owns the Work (and the copyright in it) or is licensed to distribute the Work. You shall not copy, reproduce, modify, remove, delete, augment, add to, publish, transmit, sell, resell, create derivative works from, or in any way exploit the Work or make the Work available for others to do any of the same, in any form or by any means, in whole or in part, in each case without the prior written permission of Bentham Science Publishers, unless stated otherwise in this License Agreement.You may download a copy of the Work on one occasion to one personal computer (including tablet, laptop, desktop, or other such devices). You may make one back-up copy of the Work to avoid losing it.The unauthorised use or distribution of copyrighted or other proprietary content is illegal and could subject you to liability for substantial money damages. You will be liable for any damage resulting from your misuse of the Work or any violation of this License Agreement, including any infringement by you of copyrights or proprietary rights.Disclaimer:
Bentham Science Publishers does not guarantee that the information in the Work is error-free, or warrant that it will meet your requirements or that access to the Work will be uninterrupted or error-free. The Work is provided "as is" without warranty of any kind, either express or implied or statutory, including, without limitation, implied warranties of merchantability and fitness for a particular purpose. The entire risk as to the results and performance of the Work is assumed by you. No responsibility is assumed by Bentham Science Publishers, its staff, editors and/or authors for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products instruction, advertisements or ideas contained in the Work.
Limitation of Liability:
In no event will Bentham Science Publishers, its staff, editors and/or authors, be liable for any damages, including, without limitation, special, incidental and/or consequential damages and/or damages for lost data and/or profits arising out of (whether directly or indirectly) the use or inability to use the Work. The entire liability of Bentham Science Publishers shall be limited to the amount actually paid by you for the Work.
General:
Any dispute or claim arising out of or in connection with this License Agreement or the Work (including non-contractual disputes or claims) will be governed by and construed in accordance with the laws of Singapore. Each party agrees that the courts of the state of Singapore shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this License Agreement or the Work (including non-contractual disputes or claims).Your rights under this License Agreement will automatically terminate without notice and without the need for a court order if at any point you breach any terms of this License Agreement. In no event will any delay or failure by Bentham Science Publishers in enforcing your compliance with this License Agreement constitute a waiver of any of its rights.You acknowledge that you have read this License Agreement, and agree to be bound by its terms and conditions. To the extent that any other terms and conditions presented on any website of Bentham Science Publishers conflict with, or are inconsistent with, the terms and conditions set out in this License Agreement, you acknowledge that the terms and conditions set out in this License Agreement shall prevail.Bentham Science Publishers Pte. Ltd. 80 Robinson Road #02-00 Singapore 068898 Singapore Email: [email protected]
PREFACE
“Fintech, and Blockchains Trends in The Financial Sector” by Bentham Science is a brainchild of Dr. Rishikaysh Kaakandikar, Keshav Kaushik, Priya Tiwari, Surekha Ningule. This book also examines many features of block chains in economic systems and investing methods in cryptocurrency markets. It approaches the subject first from a conceptual and theoretical standpoint, then from an assessment and investment one. Furthermore, it investigates the benefits and drawbacks of cryptocurrency taxes and the political ramifications, such as cryptocurrency speculation regulation. The book is intended for economics and finance professors, financial professionals and students. Big thanks to all our co-authors, who as experts in their own domains, for sharing their experience and knowledge. This book is an attempt to compile their ideas in form of chapters and shared with the world. This book provides insights into Blockchain, FinTech, Blockchain applications, Cryptocurrency, Finance. The book will be helpful for Undergraduate and Postgraduate students, Researchers, Academicians, and Industry people. We would like to thank the contributors to this book for their smooth collaboration and Bentham Science Publishers.
List of Contributors
A Systematic Review on Recent Trends of Digital Financial Inclusion
Roohi Sille1,*,Ishita Nanda1,Akshita Kapoor1,Samyukta Sahoo1,Arnav Sharma1Abstract
Digitalization and related processes have become prevalent in the last few years. In this chapter, we have examined and discussed the main aspects of digital transformation, their impact on the financial sector, challenges faced and scope of digital finance etc. Financial technology has become increasingly prominent in financial markets in recent years, though this cannot be attributed to the competence of regulators and policymakers as to this call. Fintech can, however, demonstrate its importance as a tool and strategy for achieving inclusive development by attesting to what it has already achieved in the realm of financial inclusion and disruption of traditional market structures. It is now much easier to have basic financial services in India, due to the vast adoption of digital payment systems.
The FinTech ecosystem in India has been aided by a number of factors like the growing availability of smartphones, increased internet access, demonetization and Covid outbreak. The financial industry is full of new innovations that can be applied in a variety of ways to the fields of artificial intelligence and block chain. They all aim to satisfy ever-evolving customer needs generated by the digital revolution. There is also a discussion of the obvious positive advantages of the application of the latest technological solutions. Payment systems facilitate entrepreneurs to easily and affordably connect with their banks, employees, suppliers, and new markets for their services. Reduced travel time and costs can speed up the process of registering and paying for business licenses and permits using these systems. While the situation is improving, entrepreneurs and employees still face challenges due to a lack of banks, digital devices, and reliable technology infrastructure.
As a result of technological advancement, today’s underground economy can provide a favourable breeding ground for hiding a broad range of illegal activities which include cyber threats like phishing, ransomware fraud, and tax evasion. The financial sector is constantly innovating. The industry today places significant emphasis on transaction speed, along with security. The process begins with clients who demand immediate payment transactions and ends up with large corporate trade transactions where time and transparency of the action become core requirements. The digital advancement and
financial literacy will help customers find smarter and better ways to save, borrow, invest, and make payments. With consumers becoming savvier, there will be an intense new battle between incumbents and challengers to become their trusted interface.
INTRODUCTION
Financial technology has made it easier to access finance. It is continuously providing alternative solutions and a variety of business models that could potentially replace traditional banking practices. FinTech revolutionize certain financial services in such a way that they deliver current financial products and services in novel ways. In parallel with the proliferation of start-ups, these firms provide more specialized services that are often more affordable, faster, and more convenient than traditional banks.
In the past, individuals with high economic status or wealth could only access certain services. As an example, let's look at the investment field. Now that investment advice is easily accessible and cheaper, the public can receive it more easily. In other words, what was previously only open to a certain group of people is now available to all. In terms of lending, this is another example. Until recently, lenders could only assess risk using limited data sources. This results in many people not being approved for loans or paying excessive interest.
Finance companies are nowadays using multiple sources of information while analyzing consumers. As a result, public exposure has been boosted. Through Fintech, it is possible to obtain an installment loan online even if you have a below-average credit score. World Bank data shows that 31% of adult populations are unbanked. Individuals who do not have access to a bank account or credit institutions are considered to be in this category. Such individuals tend to save their money under their mattresses. Individuals cited the difficulties of accessing financial institutions, the expense of opening an account, and a lack of documentation as reasons for not opening accounts.
The advent of FinTech allowed, for the first time in modern history, a variety of individuals from different socioeconomic levels to access essential financial services.
Adoption of Technology in Finance
It has been ages since financial systems have expanded, from the introduction of Credit Card, ATMs, online wallets, and bitcoins to the inclusion of savings, credit, investments, and insurance. Since then, the inclusion of technology in finance has enabled citizen service providers to offer quality services at low prices to urban and rural areas. Introducing FinTech into the financial services industry can lead to more efficient and inclusive business models and an expansion of the pool of service providers. It is also widely recognized that FinTech can turn the financial system into one that is more inclusive and stimulate economic growth.
Through financial inclusion, a large segment of the rural population can develop a culture of savings, broadening the resources of the economic system and contributing significantly to development. Further, financial inclusion permits low-income groups to participate in the formal banking sector, effectively protecting their wealth and resources. Financial inclusion also prevents vulnerable populations from being exploited by usurious money lenders by making formal credit easily accessible.
Fintech start-ups and banks are two opposing forces that continue to compete for market share as technology becomes more integral to the finance industry. The term FinTech refers to an emerging digital technology that allows for more efficient and automated delivery of financial services. The FinTech industry focuses on developing and delivering financial products and services in an innovative way through leveraging technology. Their potential for reshaping the financial services and financial inclusion landscape in the world is immense, and they are a critical part of achieving universal growth and widespread prosperity.
Due to the digitization of data, assessing the creditworthiness of individuals and MSMEs is becoming easier, faster, and less expensive. Banks can now provide pre-approved loans on the basis of this data. The number of FinTech companies operating in the digital lending area has risen due to the huge potential for business.
In 2019, India and China had the highest FinTech adoption rates (87%) (See Table 1), while the average global adoption rate was 64%. As of 2017, India was still doing better than the average global FinTech adoption rate of 33% when the above index was created for the first time.
Money transfer and payments are the most commonly used FinTech services at 96% (see Table 2). Comparatively to the global average, adoption in all other categories is also higher. Higher adoption rates of FinTech in 2019 are mostly due to higher rates or fees, easier setup of an account, access to a broader range of product and service options, and better customer experience, features, and quality of service.
The Need to Include Technology in Finance
Companies in the financial services sector are always looking for new technological advances that can improve efficiency and speed of service, while also providing a better customer experience. Through the adoption of customer experience management, companies are leveraging this exponential growth in information technology to transform the financial services industry. With the financial services industry competing with consumer brands such as Amazon, Facebook, and Google, customer service is being improved through online channels.
Initially, financial service providers, businesses, and individuals will be especially impacted as they navigate the fallout of the influenza pandemic and eventually the world post-COVID-19 as digital connectivity takes over physical interactions between consumers and providers as well as the processes for producing financial services. In fact, a digital payment trend has already been accelerating due to the pandemic (Auer et al., 2020). The rise of e-commerce has also benefited big tech firms and their financial activities (Bank for International Settlements [BIS], 2020; Alfonso et al., 2021). After the outbreak, more frequent financial app downloads occurred in countries with more stringent COVID-19 policies and lower community mobility (Didier et al., 2021).
India's FinTech revolution has had the greatest impact on MSME lending, particularly by enabling alternative lending platforms to offer loans to small businesses without a credit history (Mittal, 2020). The Goods and Services Tax Network (GSTN), with over 9.2 million registered small and medium enterprises (SMEs) reporting monthly (GST Network, n.d.), provides valuable data beyond financials. By utilizing matching techniques, GSTN data offers FinTech companies a more comprehensive and detailed view of a business, enabling stronger underwriting processes through verification and validation of transactional information (Mittal, 2020). This, in turn, allows FinTech companies to offer more efficient and effective lending solutions.
The Extent to Which this Inclusion is Advantageous
The benefits of digital finance are numerous. Due to the fact that 83.72% of the global population owns a mobile phone, digitizing finance could contribute to greater financial inclusion, assistance to non-financial sectors, and increased access to basic services. Furthermore, digital finance can be useful to underprivileged individuals in developing countries (Consultative Group to Assist the Poor - CGAP) by providing affordable, convenient, and secure banking services. Digital financial services have recently improved in accessibility and affordability, making them more available to millions of poor customers around the world. Poor customers can now conduct online banking transactions via secure digital platforms (CGAPs).
Third, the digital economy has the potential to boost the GDP of digitally-advanced economies by providing individuals and businesses with easy access to a wide range of financial services and products (such as credit cards), thereby boosting aggregate expenditures and increasing GDP. In addition to increasing stability and intermediation for both the customers and the economy in which they reside, digital finance can also improve customer experience and customer satisfaction with financial services.
The fourth benefit of digital finance is that it can promote long-term improvements in banking performance. Scott, Van Reenen, and Zachariadis (2017) examined the impact of SWIFT adoption on banks' performance based on an infrastructure of inter-bank communication standards and a network-based technological infrastructure. In their analysis, 6,848 banks across 29 countries in Europe and North America were studied. Their results indicate that SWIFT adoption is likely to have a substantial effect on profitability, with small banks expecting higher profitability than large banks, and they highlight the importance of network effects on performance.
Providing the government with a means of increasing overall spending, resulting in a corresponding increase in tax revenues. In addition, full-scale adoption of digital finance could substantially diminish the availability of unreliable (or fabricated) currency, thus benefiting financial and monetary system regulators. In order to better analyze credit risks posed by their customers, FinTech firms may be able to use machine learning and “non-traditional” data sources. A combination of this advantage and the banks' geographical reach and distribution could be a win-win.
Moreover, digital finance for customers brings an advantage which is that they are more in control of their finances, can make quick, informed financial decisions, and receive and make payments quickly. In developing FinTech, it has become possible to provide services that extend beyond some of the problems caused by the payment systems used by traditional banking institutions.
In terms of geographical barriers, a perfect example can be found in the fact that people still need to go to the bank to make payments. With the advancement of FinTech, people began taking advantage of mobile payment solutions, peer-to- peer transfers, and digital wallets. In using these services, you have the advantage of being able to use some digitized versions of credit or debit cards through mobile phone applications. Moreover, the centralized payment options simplify the purchasing process and result in shorter purchase processing times.
With these services, users would be able to quickly transfer money between mobile or digital wallets. Clients typically deposit money into their bank account that is linked to a digital or mobile wallet. A client who has adequate funding is then able to transfer money to another user. These services can be provided more efficiently, faster, and cheaper by FinTech companies.
Expansion of Fintech
Money has been a prime factor in any industry as well as in our daily life. Fintech has become an essential component in today's time, starting from providing services to money transfer, and ease of storing money in digital wallets. Many companies are coming up with new innovative solutions like artificial intelligence, encryption, blockchain, and Big Data. This innovation has opened ways to rise in the Fintech area.
The launch of smartphones along with increasing usage of the internet is one of the significant reasons behind fast development in the fintech industry. As smartphones become more prevalent another development emerged - the growing usage of online payment apps linked with bank accounts.
As the Internet and mobile technology have evolved, the ability to transfer information and interact remotely has drastically increased, both between businesses and directly with consumers. Increasing availability and efficiency of direct delivery channels have been made possible by smartphone technology, which is used worldwide, and lower-cost, tailored financial services.
Today’s consumer prefers convenience when it comes to doing transactions, such as buying on the online platform. Smartphones have made it possible for Micro, Small, and Medium Enterprises (MSMEs) to conduct many business transactions via smartphones, such as completing payment transactions, investment transactions, or online purchases.
Customers, manufacturers, and investors use smartphones as front-end devices for transactions in digital markets, but they can also use them as a tool to remotely manage their businesses. As a lot of business transactions are now conducted via smartphones, companies should embrace cellular technology by developing cellular business platforms. The digital market act as a platform and connects businesses with their customers.
The influence of the Covid-19 lockdown has created significant changes in the behavior of consumers. Post lockdown, users become accustomed to the convenience of digital services like online banking, online shopping, and food delivery apps and continue using them. Demonetization is one of the reasons for the growth of the fintech industry in India. Paytm and other digital payment industries didn’t grow much before demonetization, but after demonetization, they experienced a 3-4 growth rate. For instance, the pandemic had accelerated the shift to digital payment. E-commerce has flourished, benefiting both large and small companies with finances.
Small entrepreneurs faced difficulty in investing due to financial issues. There is an inefficiency in the way cash transactions and payments are been handled by banks earlier. To address these issues, FinTech empowers micro and small business owners to use intelligent agents to conduct commercial operations. Traditional business models are inefficient and costly in comparison with FinTech services. Micro and small businesses can compete in the global economy with the help of FinTech services such as payments, transfers, and loans via mobile devices. The FinTech industry makes it an innovative platform because of its potential to quickly combine various company lines into one platform. FinTech plays an important role in the sustainability of the small business. FinTech provides an innovative service. The attractive services provide a fast and inexpensive alternative for business owners seeking financing. Thus, micro and small businesses will have higher chances of survival.
One of the alternatives to the inefficiencies of traditional financial payment methods is digital payment. FinTech-enabled digital payments make business transaction processes faster, safer, and more convenient. The excellence of the digital transaction procedure has attracted more customers which in return provides business benefits.
Latest Contributing Events
A few of the situations had been discussed below which is been responsible for the expansion of Fintech technology.
