Fintech: Exploring the Digital Transformation of Banking & Financial Services

Abstract

Fintech has exploded since the Internet revolution. Today, fintech has given rise to numerous segments, and many financial technologies have gained wider application. Among which the most active fintech areas are: online payments via digital currency without the need for cash; P2P lending, which enables direct person-to-person lending without the use of intermediaries; robo-advice, which use algorithms to provide investment advice; and distributed ledger technology (DLT) blockchain. They are all widely used in some countries around the world, but have not yet undergone a complete replacement. These emerging financial technologies have undoubtedly revolutionary implications for traditional finance, providing new ideas for the development of the financial sector. The problems they generate deserve attention as well. This paper introduces the development history of these four financial technologies, compares them with the traditional way of operation in the financial field in which they applied, and analyzes the advantages and limitations of these financial technologies. Finally, reflections on the future of fintech development are presented.