Update Papers: FINANCIAL TECHNOLOGY
- Digital tools and services are completely going to change the way we manage our finances. Established banks are threatened by trends such as mobile payment, peer-to-peer lending, personal finance management and virtual currencies.
- Financial Technology (FinTech) has been growing rapidly over the past few years – global annual investments reached USD 3 billion in 2013 and are expected to increase to USD 6-8 billion by 2018.
- Understanding digital trends and changes in customers’ preferences are both key challenges and opportunities for established finance companies. Therefore, they are exploring digital technologies, creating in-house solutions, partnering with or acquiring innovative companies.
Currently, the term FinTech is used to generally describe the arrival of new digital techno- logies in the finance sector. Originally, the term was coined as a B2B business providing software and services for financial institutions. Now, it includes B2C pioneers catering to consumers’ financial needs and, hence, truly disrupting the market.