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A Systematic Analysis on FinTech and Its Applications

Conference Paper · February 2021

DOI: 10.1109/ICIPTM52218.2021.9388371

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 A Systematic Analysis on FinTech and its
Applications
Livea Rose Paul Lipsa Sadath
School of Management and Commerce Faculty, Software Engineering
Amity University Amity University
Dubai, UAE Dubai, UAE
liveaP1@[Link] lsadath@[Link]

Abstract— Today, FinTech is integrating with IoT and Management. When explained, we can say that, we use
Artificial Intelligence to challenge banks at a very speedy pace. technological solutions in innovative ways to make financial
Fast support and better convenience are major characteristics processes more effective. Hence, FinTech is a cross-
of FinTech that makes it desirable to customers. This article disciplinary subject [1].
covers some of the most active and prominent areas classified
under the term FinTech they are: Cryptocurrency and digital A. FinTech 1.0 (1866-1967)
cash, Smart contracts, Open banking, Blockchain technology, Technologies like the steamship, telegraph, railroads
RegTech, Insurtech, Unbanked services, Robo-advisors, allowed better financial relationships between different
Crowdfunding. This paper offers coherent research themes built countries. FinTech is often considered new, although it has a
on a critical assessment of the literature. This paper provides a history that can be traced back to 1866, when the first Trans-
review of the history of FinTech and the various areas under
Atlantic cable was laid successfully. The cable would
FinTech. Know-hows like Machine Learning, AI, and predictive
analytics in financial services can directly affect overall business
decrease the communication time between North America and
policy, revenue generation, and resource optimization. Europe to 17 hours, which would otherwise take upto 10 days.
This development was the foundation which led to the rise of
Keywords- FinTech, History, Blockchain, Robo-Advisors, several insurance, banking and joint-stock companies, highly
Crowdfunding, IoT, AI. significant to the Industrial Revolution I. This would provide
an infrastructure for financial globalization. World War II
I. INTRODUCTION also brought about several technological developments. The
The younger age groups at present have matured in the development of global telex network provided the
epoch of enhanced growth of technology. From shopping to communication foundations to FinTech 2.0 [2].
banking, anticipations of consumers have touched a highpoint
which the old-style banking has not been able to deal with. B. FinTech 2.0 (1967–2008)
Prompt introduction and acceptance of technology in life of In UK, 1968, the Interbank computer Bureau set the
this generation has generated a altered level of anticipation foundation for modern automated payments systems and
from them. The necessity of gratifying these anticipations is electronic clearing services. Later, US Clearing House
awaiting. The upsurge of FinTech and related start-ups with it Interbank system was opened and soon after that Fedwire
is actually somewhere hidden and wrapped in the customer’s opened. By 1974, Herstatt Bank had collapsed, showing the
anticipations on service level and efficiency. FinTech is now increasing financial links, before which the Society of
incorporating itself quickly with IoT and bringing significant Worldwide Interbank Financial Telecommunications
alterations to current business practices. Hence it deems (SWIFT) was established. All these events led to the first
necessary that we understand the areas under FinTech and regulatory initiative for financial institutions. This was the
their implications. Basel Committee of [Link] formation of this committee led
to a number of soft-law agreements. The global crash of stock
Section II reviews the extant literature on the history and markets in 1987 indicated the technological interlinking of
evolution of FinTech, briefing its progress starting from 1866 global markets. Circuit breakers were developed and these
through to the current era. Section III briefly discusses some were used to control speed of price fluctuations. The
of the most active areas of FinTech, such as cryptocurrency, interconnection between EU financial markets came to being
blockchain, mobile payments and so on. Section IV focuses after the Single European Act of 1986 and the Maastricht
on a comparative analysis between traditional finance and Treaty of 1992. Initially, the risks of computer managements
FinTech, throwing light upon why FinTech is becoming the systems were overlooked, and this was revealed by the fall of
new normal and why it is profoundly impacting businesses Long-Term Capital Management after the financial crisis of
and organizations in the new world. This section also years 1997-98. Online consumer banking was developed in
compares and contrasts FinTech with traditional finance as 1995 by Wells Fargo and the emergence of internet paved
well as TechFin. Section V discusses the major security way for FinTech 3.0. E-Banking obviously brought forth new
concerns related to Fintech and why it is extremely important risks, especially for regulators, mainly because technology
for FinTech firms to address such issues appropriately. allowed for instant money withdrawals. It was expected that
Section VI addresses the major gaps in FinTech research and the providers of these e-banking services would be authorised
details the scope of future research. financial institutions such as banks. But FinTech 3.0
II. FINTECH- HISTORY AND EVOLUTION demanded a rethinking.
FinTech, although commonly referred to as a new
C. FinTech 3.0 (2008–PRESENT)
industry, has a long history that can be divided into three
phases. The development of mainframe computers, SWIFTS, Between 2007-08, the brand image and trust of customers
ATMs etc. is considered as a part of FinTech 1.0. The next era over banks had suffered a shake. Surveys of 2015 showed that
of FinTech, comprised of Internet and Internet of Things, and most Americans believed in technology firms more than
it was called FinTech 2.0. Now, we are in a transitional phase traditional banks to manage their cash. Presently, in China,
from FinTech 2.0 to FinTech 3.0, in which more and more more than 2000 P2P (Peer to Peer) lending platforms have
technologies are expected to be developed. Finance combines been founded outside any regulatory framework. The fact that
Finance, Technology Management and Innovation these are outside the regulatory framework does not seem to

XXX-X-XXXX-XXXX-X/XX/$XX.00 ©20XX IEEE

bother lenders and borrowers as they are more concerned with industry itself is evolving at a quick pace and those recent
low cost and greater convenience, as well as higher returns. start-ups in this field are demonstrating higher failure rates as
The competitiveness and profitability of banks were severely a consequence of the already greater level of competition [8].
damaged, and regulations and requirements related to ring- FinTech services are seen as a key enabler of financial
fencing and stress testing performances etc. just increased the inclusion, meaning provision of financial services to the
already rising bank expenses. FinTech 3.0 involved great unbanked. Cloud computing, blockchain, big data analytics,
levels of smartphone penetration and sophistication in the case AI are enabling more and more people access these services,
of APIs or Application Programming Interfaces. The rapid wherever and whenever. With this large scale integration of
rate at which the technology developed and the change in the technology in finance, it is important to have regular and
identity of financial service providers were the key efficient check on the data security [9] in financial
characteristics of the third and most significant phase of institutions and other factors that support institution’s
FinTech. Financial institutions are under a threat that their security [10]. Customer centric business model is very
services could be provided in a specified, improved and easier desirable for FinTech start-ups aiming at financial inclusion.
way to consumers and businesses by startups and technology Quantitative and qualitative researches are very significant in
firms. enabling financial inclusion by FinTech start-ups and the
solutions created by such FinTech companies are definitely
FinTech 2.0 concentrated its regulations on systemically in the right direction [11].
significant institutions. But today, it is deemed to be necessary
that they should begin their focus on certain specific industry III. APPLICATION AREAS UNDER FINTECH
participants. In 2015, the China began to re-evaluate their Below explained is few of the most active and prominent
regulatory approach. The evolution of FinTech has also areas classified under FinTech:
caused for parallel developments in RegTech. It is suggested
that a multi-level and flexible approach is apt, and that the A. Cryptocurrency and digital cash.
regulations should be implemented with different intensities Cryptocurrency, or digital currency, uses block chain
with regards to the size and risk of organizations. Regulators technology to record transactions. It is secured by
would have to work hand-in-hand with industry to gain cryptography, and this ensures that there is no chance for
insight into the evolving market and thus develop regulations double spending. This follows a decentralized system that is
that encourage innovation and at the same time, stabilizes risk not controlled by any central authority. So they remain free
and eradicates chances of regulatory arbitrage. from government interference. Crypto means the various
Technology in financial sector is both transforming the encryption techniques that are used to secure the blockchain
way in which services are delivered; it is also creating network. There are several cryptocurrencies available in the
competitors outside traditional industries. Computational virtual market today, the most prominent one being Bitcoin,
advantages of recent times have allowed the collection of the very first cryptocurrency developed by Satoshi Nakamoto
fundamental firm data, like real time transactions and in 2009. As of recent surveys, there are 18 million
customer data, are if interest to finance professionals who may cryptocurrencies available today and their total market value
be able to apply it in stock pricing analysis [3]. FinTech is is calculated around 165 million dollars. Other commonly
said to have a lasting impact on the whole industry, because of known cryptocurrencies include Namecoin, Peercoin, Litecoin
its highly innovative and potentially disruptive repercussions. and also Ethereum.
Some definitions claim it to be an industry, while others B. Blockchain technology.
define it as a technology. Then again, few other literatures,
define it as a type of action, such as a business or service. All Blockchain is a digital ledger. It consists of transactions
the sources identify FinTech as something that is novel, and they are completely public. It is regularly updated by
emerging, disrupting and innovative. In short, FinTech is a users all over the world and it is regarded by many as anti-
novel financial industry that makes use of technology to make corrupt. Block chain can be said as the rails on which
financial activities more efficient [4]. The rapid increase in cryptocurrencies like Bitcoin and Litecoin travel on. It’s a list
interest in FinTech (which is evident through Google searches of continuous records in blocks. Each block holds time-
over the years) point to a need of better understanding of it. stamps of transactions, they are linked to the previous block
FinTech innovations are very valuable to innovators and and the records cannot be changed retroactively. Blockchain is
finance industry altogether. But some FinTech innovations often associated only with cryptocurrency transactions, but
can have adverse effect on certain financial industries. When infact, it can be used to record data of all types. “Blockchain
such innovations come from relatively new, non-financial is a part of the iceberg beneath the Bitcoin” that is what John
firms, it can have a more negative impact [5]. The primary Callahan said. If deployed effectively blockchain can
objective of financial sector is to enable transactions. For profoundly impact the way in which transactions are recorded
example, cash and payment solutions, diffusion of smart and documents are kept [12].
device models etc. These innovations often blur the distinction C. Smart contracts
between finance sector and other industries. There is a strong
Smart contracts are another application of the blockchain,
integration between Fintech solutions with the primary as well
they are computer protocols that simplify the execution of
as the secondary sectors. New business models propel the
contracts between sellers and buyers without the involvement
FinTech movement on the network level [6]. FinTech
of third parties like e-commerce sites, courts or credit card
redefines the manner through which customers save, store,
companies [13]. This allows us to avoid the high costs of
borrow, spend, invest and protect money. There are several
contract drafting, judicial intervention, opportunistic
FinTech business models such as wealth management
behaviour, and the inherent ambiguities of written language.
models, lending models, payment models, insurance service
Electronic data interchange is another system that was
models, capital market models etc. which are implemented
developed for the same purpose. But it failed and infact it
by the increasing number of FinTech start-ups. FinTech start-
empowered decision makes with the inefficient way of
ups often try to compete with the existing traditional financial
making agreements. Smart contracts were developed in a
institutions or they try to collaborate with them. When the
more technologically sophisticated manner, to chive what
various banking regulations are favourable they tend to be
EDIs failed to achieve. Their scripting languages allow wider
more competitive and less collaborative [7]. The FinTech
range of functionalities and larger scalability. They have the
ability to faultlessly integrate with operational and financial distinct phenomenon [20]. Businesses can definitely benefit
systems at the core of present-day enterprises. EDIs require from RegTech, but it needs a precise design of technology
human interference and had the support of only very primitive along with the collaborative effort of private sectors and
and under-developed digital environments [14]. Automation, regulators. Financial regulations generally include financial
decentralization and anonymity are the basic features of smart stability, fairness, prudential regulations and competitive
contracts, which have their advantages and disadvantages. It is market development. This kind of monitoring by means of
extremely expensive to form smart contracts in uncertain or reasonable regulations provides new information to financial
volatile environments. At the same time, they are flexible and institutions and thus complements their function. The
allow the involved parties to include commercial customs into informative environment of these institutions also in turn
the contract in a responsive manner. affects the regulations. RegTech promotes good corporate
practices and helps organizations to reduce operational risks,
D. Open banking it can be an extremely valuable domain in terms of corporate
Open banking, is also an application of blockchain which governance, identity management etc. by tackling challenges
refers to the usage of APIs (Application programming to compliance [21].
interfaces) which enables 3rd parties to develop applications
or services centering the financial institution. ‘Mint’ is one G. Robo-advisors
example of this; it is an all-in-one money management tool According to Fein, “the term “robo-advisor” refers to any
[15]. It allows more financial transparency for the different of a growing number of Internet-based investment advisory
holders of accounts and ranges from open to private data. The services aimed at retail investors that have emerged in the
innovative payment services provided by FinTech was a financial marketplace in recent months.” Most small investors
major factor that contributed to the development of open are quite comfortable with technology but they would like an
banking system. Financial inclusion is the primary objective adviser to guide and reassure them about their investments
of open banking, this allows consumers of all types to have a and other finance related requirements. These robo-advisors
bank account that allows access to innovative financial make guidance free from human advisor, by making use of
products and services at affordable prices [16]. This idea has asset allocation models, logarithms etc. Asset allocation
also been termed as ‘BaaP’ or ‘Banking as a Platform’ and it models are commonly regarded as being tailored to an
refers to banks adopting the platform strategy model. Banks individual’s investment needs. It is prepared by responses of
will have to prepare themselves to provide technologically the user to online questionnaires. It is generally preferred for
advances services and tools that equip participants on various the reason that it helps to avoid a personal advisory
sides of the platform and also will have to consider the degree relationship with the client. The investor is asked to fill out a
of openness which they plan to operate on. There are four questionnaire online, and by analyzing the responses the
basic functions that platforms need to provide, which are, system is able to understand basic risk parameters and the
demand-side platform users, supply-side platform users, preferences of investors. But this may or may not include
platform sponsors and providers [17]. Open banking brings information regarding the individual/’s financial condition.
several improved benefits such as sustainability of the Some regulatory authorities like SEC ad FINRA have warned
business model, new streams of revenue, improved customer that robo-advisors may depend on assumptions that are not
service etc. [18]. quite applicable to an investor’s financial condition and this
can lead to investment recommendations which may not be
E. Insurtech suitable for an investor [22].
InsurTech is a condensed and technical name for
Insurance technology. It offers individuals customized H. Unbanked services
solutions to risks of life by making efficient use of sensors, Underbanked or unbanked services are provide to that
data analytics etc. It is considered as a threat to agent-like market segment for the financially undeserved, or those who
insurance brokers, which may gradually vanish from the are financially unsecure or unhealthy. They get access to
insurance market, as the case of China where an insurance services like borrowing, investing, saving and insurance at a
disruption is said to have happened. Insurance industry faces reasonable price brought forth to them by sound financial
multiple problems today, such as complexity and the strict institutions. New mobile payment systems and increased
regulations imposed on it. InsurTech allows insurance access to bank accounts which came about as a part of
providers to rise above these limitations. It provides constant FinTech, allow the inclusion of these financially undeserved
interaction between insurers and consumers. This allows customers [23]. Financial inclusion means enabling those who
consumers to reduce their risk. IoT allows customers to use are not able to access current banking services, to access
activity trackers which prompt them to exercise and then services that help them maintain financial health. FinTech
provide them with reduced premiums once they reach their allows moneylenders to reach out to the unbanked and
target health goals. In addition there are also driving trackers. provide credit to such individuals who are empowered to
This enables customers to get insurance cover, immediately exchange money and carry out transactions via mobile phones
and on-demand with the help of information recorded by these without a financial balance. FinTech allowed a wider
trackers [19]. expansion into unique and versatile financial products and
services at a more affordable rate. Studies in FinTech serving
F. RegTech the unbanked in Kenya, indicate provision of financial
RegTech refers to technology that would allow the services to those earning a below average income, has been
implementation of regulatory requirements more effectively affected significantly by strategies being deployed by FinTech
and efficiently. Moreover, it is highly regarded as the next firms [24].
logical evolution of financial sector that can bring about a
paradigm shift in regulation. Using technology to monitor and I. Crowdfunding.
ensure compliance allows large amounts of cost-reductions to This means raising many small quantities of funds from a
companies. Continuous monitoring provided by RegTech crowd or from a large no. of people, generally through
allows for the faster identification of non-compliant Internet or social media. The period of raising funds is fixed
organizations. Although RegTech is commonly known as a prior, and if the gathered money does not reach the required
subset of FinTech, as both were developed by GFC, it is level, it is cancelled. It was initially started in England in 2005
argued that it should be considered a connected but more as a private loaning service named as Zopa. It was then
referred to as social funding, P2P funding etc. In US, easy task to differentiate the leverage-feature with the bug.
Indiegogo, a sponsor platform was established after which But FinTech initiatives generally show how technology can
‘crowdfunding’ was used. Investing crowdfunding and provide low-leverage solutions. And they are also funded with
donation crowdfunding are the two major types of more equity that existing companies [30]. The development of
crowdfunding. This categorization was done by World Bank. FinTech was due to globalization and it gave an opportunity
Donation crowdfunding includes donation-based and reward- for several small enterprises [31] to extend financial services
based crowdfunding. The Investing crowdfunding includes without the help of banks. By combining Finance and IT they
equity-based, lending-based, and royalty-based crowdfunding could offer the public speedy execution of typical banking
[25]. Crowdfunding is an application of FinTech that can processes [32]. Technological advancements and innovations
potentially remove financial intermediaries. Investment based can create a revolution in finance by enabling it to be more
crowdfunding has developed as an alternate method of inclusive, egalitarian and decentralized. But adopting such
funding that does not require registrations or intermediaries, innovation also means having a proper regulatory balance.
thus reducing the fundraiser’s transaction costs [26]. Governemnts should enable FinTech companies to pioneer
novel services and products that would meet market demands
J. Mobile payments by employing a comparatively more lenient regulatory
Mobile FinTech service providers include Apple pay, approach in the initial stages [33]. FinTech is now integrating
Starbucks app, Samsung pay, Alipay, Palpay, Wechatpay etc. rapidly with IoT to bring significant alterations to current
and they are presently used by millions of users. These business practices. Financial engineers gather data from social
service providers can be categorized as OS makers, HW networking sites, mobile phones etc. to give rise to new
makers, payment platform providers and also financial industries. By the time analysts just take a look at income
institutions. These providers must satisfy the requirements of statements, AI technologies are able to produce high quality
convenience, compatibility, mobility, security, simplicity etc. interpretations and results. The present sentiment of general
The security challenges that are pertaining to provision of public on a stock can be figured out in just seconds by
mobile payment services include integrity, mutual sentiment analysis firms. The merge of FinTech with IoT and
authentication, availability, privacy etc. [27]. The adoption of AI is currently challenging the very existence of banks. The
mobile payments have been increasing over the years, and risks of making blunders in the progression of technological
change is much lesser that the risk of not moving with the
there are much literatures available on the nature and
change. Data is no longer trivial, rather it is now referred to as
characteristics of consumers relying on mobile payment the “new currency”, that means, data is center to any
systems, so that FinTech companies can obtain better insights organization. Data doesn’t flow through businesses, rather
to provide improved services [28]. China has developed as new businesses flow from data. Firms must get familiar with
the leading nation when it comes to FinTech innovation and data as it is going to become commonplace faster and earlier
the best example is Alipay, which showed an exponential than we expect [34]. ‘FinTech’ and ‘IoT’ have obtained wide
growth as majority of transactions of Taobao were settled by spread recognition today as the prime agents of novel
means of Alipay. It was one of the first FinTech firms to technology and it has led to the formation of new and
gain official authorization for online payments. Today improved products and services, making possible more
several other FinTech firms also exist in China, such as convenient and inexpensive versions of present financial
Wechat Pay, thus building a cashless society. Alipay is also a systems. Even those who are not connected to the field are
tough competitor for other global mobile payment systems closely observing the trends in this industry. Services like
such as Apple Pay and PayPal. The convenient and highly GMS (Global Mobility Service), are gaining much popularity
streamlined manner in which transactions can be carried out today. Simply increasing the efficiency of already existing
via these systems are making them very desirable to products and services will not help, rather the way services are
consumers. [29]. provided should change, that should bring about a better
society with problems resolved. That is what FinTech in
IV. FINANCE VS. FINTECH collaboration with IoT and AI does. It presents a platform for
Finance is a domain that is extremely significant for providing society with sustainable methods of supporting
growth. But most financial services are consistently expensive these causes [35]. Financial Technology has definitely come a
and there are not many innovations in the financial sector that long way overcoming many hurdles, but it still faces some
are practically delivered to customers with vital benefits. This challenges. However it continues to grow, even though macro
doesn’t mean that finance lacks innovation, but the existing events and firm specific events like security concerns, data
innovations have not improved the overall effectiveness of the breaches and such necessitate a steady and constant pace of
domain. The high cost, slower pace, strict regulations and innovation [36].
uneasiness of procedures of financial industry can be Islamic FinTech is an area that is aimed at improving the
highlighted as major reasons why FinTech emerged. Similar Shar’iah compliant nature of finance. It pertains to the
to many other industries, FinTech companies initiate demand of technologically advanced products and services
disruptive innovations for certain services. There exist first among the Muslim consumer base, which is expected to
mover advantages like customer base, capability to predict the increase significantly in near future. The growth of this area
industry evolution and knowledge in existing regulations. will require appropriate regulations and formulating Shar’iah
FinTech start-ups have the opportunity to build right systems standards. Several central banks are taking initiatives to
from start, but in contrast, banks and other financial ensure the efficiency of Islamic FinTech firms [37].
institutions which have gone through multiple successive
mergers have ended up with layers of legacy technologies. As opposed to FinTech which is finance firms making use
FinTech startups often project a culture of operational design of technology, TechFin is another domain which refers to a
that most companies and startup do not possess. In the technological firm that that delivers financial services and
financial industry most start-ups depend on leverage. products. The potential of such large techno firms to dominate
Leverage is partly feature and partly bug. The feature comes financial services delivery is not just an idea; it is a reality in
to play when it is needed to provide incentives, and as a bug, many Asian markets such as China. For example, Facebook
is due to poor design or when it is related to an old feature allowing to make payments through Messenger app, is a
than can be substituted with improved technology. It is not an service that widely available in US and UK and is also
expanding to other parts of the world [38]. TechFin is a less firms, which also need to make sure that data is used in the
disruptive, but more incremental approach as compared to right way, thus addressing privacy and security concerns
Fintech [39]. . while integrating technology in finance [44]. The major
solutions for data storage involve cryptography techniques
Traditional Finance FinTech TechFin and processes to make sure security and protection of data.
Encryption, ofcourse, is the major solution to ensure data
Delivering of financial Begins with financial Starts with technology
protection. Security algorithms that provide confidentiality to
services and products services and products and adds data and data are categorized as public, private keys and signature
traditionally without and incorporates financial services into algorithms. Fully Homomorphic Encryption is a technique
the use of technology. technological and data the value chain. that allows encrypting data such that operations can be
into it.
performed to data in the cloud [45]. Studies have been
conducted on using graphical passwords as opposed to
Starts with purely Customer relationship Begins with
financial relationship. is for financial purposes relationship with textual passwords in an attempt to develop better
and aims to use customers in a non- authentication systems for users. Intrusion detection Systems
technology to improve financial environment. are a highly researched area to capture any unforeseen
it. incidents in organizations such as DDOS attacks [46]. A map
and route based graphical password scheme called Route-
Not data driven or Data driven and Specialized in
Map has been employed for this purpose and it was found
technologically technologically technology, but
equipped. equipped to specialize expand to finance that it was able to achieve better long term memory as well as
in finance (finance is (data accumulation and memory of multiple passwords as compared to other
the focus) analytics are the key). graphical schemes [47].

Not potential Disruptive in nature. More incremental than VI. ANALYSING GAPS IN LITERATURE
disruptive and is likely disruptive in nature.
to be replaced. There exist literature gaps on the changing structure of the
industry and the organization of financial services. Most
Regulations are strict Regulations are Regulatory systems are existing studies focus on the short run changes in the industry
and broad, making it comparatively lesser similar to Fintech, but and analytical studies that focus on the long and medium
inaccessible to many. and developing. developing only. term changes in the structure of various financial services
that arise as a result of FinTech are not found. Also, although
Relative lack of Highly innovative, Data dependency adds there are a lot of studies that make use of data from loan ad
innovation. enabling easier access innovative features and
at cheaper cost allows greater access.
well as equity based crowdfunding, there are no elaborate
studies on alternative finance and how it is impacting
Fig. 1. Analytical comparison: Finance vs. FinTech vs. TechFin.
businesses today. Research gap is also significant in studying
In addition, the case of 007fenqi, as considered in previous the changing payment platforms and customer behavior
literatures indicates that many emerging platforms operate in towards such systems, as well as in topics such as fraud,
the grey area. This is where much regulations or legislations identify thefts and financial crimes with regards to the
are not in place and such unregulated or unmonitored former. In addition, there are also not much detailed and
environments allow for more innovations and opportunities in elaborate research works on the applications of Artificial
the financial service sector [40]. At the time of this research Intelligence and large scale processing in finance with the
work, in the UAE, we note that all regulators keep a watchful
exception of few papers. The gap between financial
eye on FinTech activities in the respective jurisdictions and it
technologies and the significantly increasing regulatory
is expected that in near future additional regulations will be
put in place after assessing the legal implications of emerging systems are also not studied much and it lacks the study of
technologies. Meanwhile, India does not have a unified code many related relevant areas [48]. RegTech and InsurTech are
of laws for Fintech firms; RBI has issued two regulations comparatively new technological developments that stemmed
under PSS Act of 2017, and along with SEBI, it has set up the out of FinTech, and hence their potential is yet to be explored
Working Group on FinTech and Digital banking for assessing fully. Although there are literatures available that explain
such technological opportunities and regulating them. their features and evolutions as well as impact, analytical
works that elaborate their potential are scarce. This is yet
V. SECURITY CONCERNS another area which has good scope in future research [49].
Security is a requirement for FinTech services as sensitive Researches dedicated solely to the purpose of reviewing the
information of users are associated with FinTech services, existing literature on FinTech is comparatively less, and
especially those such as mobile payment services, open future studies can be undertaken employing the analytical
techniques such as semantic analysis to identify and locate
banking etc. [41]. Different kinds of attacks on computer
networks and IT systems have become a major challenge for new concepts definitions and terminologies in the FinTech
organizations and so they are making huge initiatives to domain [50].
prevent them. Problems like account extortion, session VII. CONCLUSION
hijacking, DDOS attacks etc. have put the private data of
users in danger. Although many new and existing financial To summarize, FinTech is often considered as a new
industry, but it has a long history that dates back to 1860s and
institutions are making an effort to lead the FinTech market,
this history is divided into three phases, namely, FinTech 1.0,
security is the top priority and organizations are required to 2.0 and 3.0. An overview of technologies such as
establish security principles to ensure service stability [42]. Cryptocurrency, Blockchain, InsurTech, Open banking etc.
Data security, added value and trust are few of the key throws light on some of the most active areas under FinTech
aspects which are essential to FinTech adoption [43]. Hence today. Mobile payments are considered to be one of the
the core aspect of FinTech is data and its security. FinTech strongest areas of FinTech. The paper has also summarized
plays a significant role in value generation for current finance why FinTech is swiftly emerging by comparing it with the
financial services industry. The comparatively greater expense LOW INCOME EARNERS IN NAIROBI COUNTY (Doctoral
associated with traditional financial services and their lesser dissertation, SCHOOL OF BUSINESS, UNIVERSITY OF
NAIROBI).
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FINANCIAL SERVICES DELIVERY TO THE UNBANKED

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