Background Fintech, or financial technology, is changing the financial services industry through the offering of new products and the way that financial transactions are carried out. As pointed out by...

CORPORATE FINANCE
Table of Contents
Introduction    3
a) Changes brought about by Fintech    3
b) Change in the way of doing Business    4
c) Risk in Financial Technology Revolution and its Adoption by Firms or Consumers    4
d) Risks posed by Fintech to Stability of Financial System    5
Conclusion    6
References    7
Introduction
Financial technology also referred to as fintech is an economic industry composed of firms that make extensive use of technology to increase the efficiency of financial services. The traditional operation system of financial institution act as a hindrance in the adoption of financial technologies. Financial technology companies as generally start-ups, which are founded with the purpose of innovation of system in the banking and financial services industry. In the world of digitisation, collaborative support and few other factors, there is a healthy environment for such companies to grow. The initiatives of Fintech are driving financial services innovation at a fast pace. The banking industry has changed significantly in the last decade.
a) Changes brought about by Fintech
Financial technology has brought a significant change in the banking industry and the lives of people. According to the views of Kotarba (2016), with the emergence of real time payment system through use of application and websites, the industry has taken a new shape. Few years ago, the customers transferred money using the online banking system or physical system. The introduction of technology has enabled the customers to transfer money using unified Payment Interface (UPI) and others (Business Insider Intelligence, 2018).
The customer focus on the quality of the service. In earlier times, it was about getting the work done but currently all what matters is service quality. In my organisation, the banking organisation that provides the best service in terms of accessibility, speed and ease is preferred. With the introduction of fintech, the operations can be done by anyone, but the service quality is the one that makes the difference, Use of technology speeds up the operation thereby leading to better management of cash flows on a real time basis.
As per the viewpoints of Anand and Mantrala (2018), artificial intelligence helps the organisation in finding the best payment schedules thereby leading to optimisation of costs. Various tools are used to manage the payment schedule, set alerts. Even there are technologies that ensure that the payment is automatically made as per the schedule. This protects the organisation from penalties related to various delays. The use of artificial intelligence also helps the firm in tracking the cost, which helps in sticking to the budgets. In my organisation, the technology is used to prepare payment schedules and the payments is automatically made at the stipulated time (EY Global, 2018).
The data is captured deeper and better with the use of fintech. This enables the financial service providers to analyse the customers in an effective manner. The transaction are recorded at the point of contact, which ensures the spending pattern of the customer. This helps the financial service providers in designing products to ensure that it meets most of the requirements of the customer. My firm records the transaction of the customers. Various analytical tools like
b) Change in the way of doing Business
With the introduction of technology, the way of doing business has changed significantly. Most of the processes are being automated to ensure that the process is highly efficient. According to the perspective of Bhasin (2018), use of technology has led to a reduction...