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The health crisis linked to COVID-19 has made digitization a significant issue for companies regardless of their form or geographical location. Our research focuses on the financial technology (Fintech) revolution in the context of international development. Its theoretical framework lies in both the fields of Fintech and factoring. As innovative start-ups that combine finance with new technologies, Fintechs have been able to disrupt the banking world in a few years by challenging its traditional practices. We use the case method to analyze two Fintech in-depth, and our results highlight the upheaval of Fintechs in the factoring sector. The supply of the analyzed Fintech is a limited working capital requirement. Furthermore, Fintechs may threaten classical banks due to the innovation of their offers and business models. However, the Fintech revolution focused on corporate finance is still in its infancy.

Global economy, growing importance of innovations as well as wide use of technologies have changed the banking business worldwide. Financial technologies (FinTech) have become an integral part of banking, and nowadays banks have started to compete beyond financial services facing increasing competition from nonfinancial institutions providing, for example, payment services. Start-up service providers, search engines, and social networks have expanded their services “interfering” in the fields traditionally covered by banks. The rapid rise of FinTech has changed the business landscape in banking asking for more innovative solutions. These recent tendencies require the banks to increase investment in FinTech, rethink service distribution channels, especially the business-to-consumers models, increase further standardization of back-office functions, etc. Some members of the financial services industry see the boom in FinTech as a threat to traditional banking industry. Others believe that FinTech has become a challenge that can be turned into an opportunity as it provides more flexibility, better functionality in some areas, and aggregation of services. The aim of the paper is to analyze the recent trends in banking, identifying opportunities and risks of FinTech for banks. A timely integration of FinTech into business allows banks to get an advantage in growing competition. This paper provides an extensive analysis of recent trends in FinTech and banking, examining experience of leading European and US banks, as well as surveys conducted among members of the financial services industry in different countries. The authors have studied the development of the financial innovation and technology market, assessed the existing practices applied in the field of FinTech, identified the main risks related to development of FinTech and financial innovations the banks are exposed to on the micro- and macrolevel. The paper provides recommendations for regulators and banks to ensure reduction of risks associated with development of FinTech. Analysis of FinTech market has shown growing competition, including from nonfinancial institutions. The paper provides practical recommendations to commercial banks for strengthening the position in financial innovations and controlling the risks associated with introduction of financial innovations.

The global Islamic financial landscape is changing with rapid advances in technology. The increasingly tech-savvy demography is presenting both opportunities and challenges to the industry. With the advances in e-finance and mobile technologies, financial technology (Fintech) innovations emerged by combining the e-finance, Internet, social networking services, social media, artificial intelligence (AI) and big data analytics. Fintech promises to reshape the Islamic financial landscape by improving processes’ efficiencies, cost-effectiveness, increased distribution, Sharīʿah compliance and financial inclusion. As far as the Islamic fund management industry is concerned, AI seems to be the keyword. Islamic fund managers have recently started to incorporate AI and big data analytics into their strategy in the process of making accurate decisions based on facts and figures, which eliminates any biases and personal intuition. This disruption in status quo is raising new issues, new concerns and new exciting opportunities. While disruption may carry negative connotations, the industry players have been embracing the innovation and potential revolution the technology could offer. Thus, the objective of this chapter is to discuss legal aspects of Fintech and its impact on the Islamic fund management industry in Malaysia. This chapter introduces a historical overview of Fintech and its evolution in the Islamic fund management industry. This chapter further provides an overview of the legal and regulatory aspects of Fintech with regards to the industry. Finally, legal issues and challenges are identified and discussed. Being a legal research, this chapter adopts a qualitative method by analysing the relevant literatures on the subject. This chapter is expected to provide an insight into the application of Fintech and its impact on the Islamic fund management industry in Malaysia.

In this study, the authors use a country-level database covering 63 economies over the period 2014–2019 and employ a wide range of proxies to discuss new technological trends in finance, particularly in the banking sector. The authors also distinguish alternative technology-based business models that directly compete with banks [financial technology (fintech) and giant technology (bigtech) credit providers]. The results suggest that banks’ increased focus on technological innovation, as measured by market value and number of patents, is a possible response to the emerging technology-based nonbank competition, particularly from fintech and bigtech firms. Additionally, the results indicate that the emergence of financial innovation contributes negatively to the average value of bank patent, indicating significant competitive pressure on banks in the technological race. Thus, banks are countering the challenge of fintech and bigtech competition in the financial market by increasing their technology projects and patenting activities. These trends are crucial and may change the stability and sustainability perspectives of banks.

The study focuses on micro, small and medium-sized enterprises (MSMEs) perceptions about using Fintech instruments to meet their financial requirements.

Methodology: The research utilises a quantitative method, which entails collecting primary data from 400 participants using an organised questionnaire. Chi-square tests, principal component analysis and multiple linear regression are some of the statistical tools utilised to analyse the findings.

Findings: The study’s findings indicate that only a small percentage of business owners know that Fintech instruments can be a source of financing for their companies. In addition, the items utilised in the research led to the generation of three different aspects: banking, MSME and Fintech.

Originality: The previous study indicates that several scholars have focused on various facets of the application and utilisation of Fintech. In the category of digital payments, the total transaction value is anticipated to reach $8.49 trillion in 2022. By 2027, it is expected that the entire transaction value will have increased by 12.31 per cent each year (CAGR 2022–2027), totaling US$15.17 trillion. Digital commerce is expected to have a total transaction value of US$5.49 trillion in 2022, making it the market’s largest segment. On the other hand, there isn’t much research that concentrates on developing countries, and the standards those studies need to meet are relatively stringent. In the context of MSMEs, this is an innovative approach taken towards the State of Punjab.

Need: Fintech services have an important role in bringing about significant change by providing innovative financial services, addressing credit gaps and reshaping how financial services are delivered. Fintech instruments are gaining very high popularity in terms of functions and novelty and can be predicted as the future of operations in the financial sector. Moreover, Fintech instruments can be seen to have a close connection to the MSME-guided programmes. Thus, it would be pretty interesting to note if there lies a need for the optimum implications of Fintech in MSMEs and upcoming start-ups.

Purpose: The goal of this study is to delve into the causes behind the Fintech sector’s rise in various areas and its prospects. Fintech is rapidly expanding because of government legislation, multiple schemes, consumer expectations, a cashless economy, digitisation, globalisation, innovation, and other drivers.

Need for the Study: Fintech firms are forming alliances with traditional financial organisations to stay afloat and compete. India is becoming a superpower regarding e-startups, especially unicorns. Many startups are undergoing initial public offerings (IPOs). Fintech is an emerging space in India, spreading its wings rapidly in every sector.

Methodology: This work is based on a literature review. It utilises secondary data from numerous research publications, magazines, newspapers, published reports, relevant websites, Forbes magazine articles, stories from The Economic Times, the RBI Portal, and information from StartupIndia, Assocham, and Pwc, among others, to develop a conceptual framework showing the growth drivers of Fintech.

Findings: The whole world has been affected severely due to COVID-19. Crisis always comes with some opportunity, and it is up to us how to turn the calamities into opportunities that further turn into innovation that has the power to lead the world. Fintech is that fruit that had been born normally but grew abnormally (tremendous growth) during the pandemic. Also, the roots are so deeper that they will flourish more and more. It has been found that the emergence of a cashless economy, ease of internet connectivity, etc., are the major factors that paved the way for growth for Fintech in India.

Practical Implications: This study contains the conceptual framework which can guide the stakeholders, policymakers, management teams, field experts, etc., in knowing about their area expertise and looking for improvement, if any.

Originality: There are many papers on the relationship between Fintech and financial inclusion, but this is the first study that builds the conceptual framework for the growth drivers of Fintech.

This chapter considers the process of entrepreneurial activity to deploy financial technologies (fintech) through mandate-specific new companies in Latin America. We deal with important historical issues such as defining the term, establishing temporal and industrial activity boundaries, positioning this particular process within other organizational forms typical of the region, the role of women, and other relevant issues such as the modernization of retail payments and personal lending. A central question is whether fintech start-ups have had a “scissor” effect in the entrepreneurial process of Latin America: at the base of the pyramid (i.e., reducing frictions to support overall entrepreneurial activity, increasing financial inclusion, etc.) and near the top (by creating new business leaders). As a result, this chapter provides an initial assessment of gender disparities and barriers enabling women entrepreneurs in the fintech ecosystem.

Purpose: The banking sector is facing a challenge in the quality of services rendered to the ultimate customers for the adoption of Fintech applications in an efficient way. Due to dynamic market conditions, it is difficult for the banks to win the heart of the customers. It can be done only by providing them with updated technological applications and excellent services. Here, service quality plays a major role in this regard. It acts as an optimum strategy for the service providers to attain the interest of their customers and change their perceptions towards the banks in a positive way by providing them satisfactory services. This chapter aims to critically analyse and assess the quality of banking services rendered for Fintech applications to the customers.

Design/Methodology/Approach: The study evaluated the preference for public/private banks for Fintech applications across various demographic factors. In this research, users of public or private banks have been considered as respondents who are using Fintech applications. The service quality of both banks has been measured using a service quality scale, i.e., SERVQUAL. With the help of the Questionnaire, data were collected from 100 respondents from Punjab State on a convenience sampling basis. The Chi-square method was used to check the preference for different types of banks across demographic profiles.

Findings: ‘Responsiveness’ and ‘Tangibles’ are the most significant service quality dimensions. The present study revealed that the preference towards public/private sector banks has no dependency on occupation but found dependence on age and education level.

Research Limitations/Implications: The present study merely concentrates on the banking sector’s service quality towards Fintech applications. It could be used for the security market, insurance and other sectors in the future period. The present study provides implications for future interdisciplinary research addressing the need for Fintech applications as Fintech has become the need of every industry.

Originality/Value: This study is conducted to explore the opportunities for Fintech in the banking sector vis-á-vis service quality. The authors anticipate that the current study will contribute to existing literature and thus become the reference for academicians, researchers and industry professionals.

The change in Malaysian financial environment can be attributed to digitalization as banks are racing to digital maturity by 2020. Historically in Malaysia, the use of credit card was a Fintech development in the 1950s to help Malaysians minimize the burden in carrying cash all the time. The aim of financial technology in the 1990s was to encourage bank customers to use the online banking system instead of only automated teller machine. Fintech services are swiftly interrupting banks' services globally. Similarly, Malaysia's banking sector is experiencing the interruption since as more Fintech organizations are innovating new Fintech service to improve convenience for clienteles. Numerous regulatory agencies in Malaysia and the Malaysian government have set up several initiatives to encourage and provide a vigorous growth in the Malaysian Fintech and digital asset regulatory environment. Expectation Confirmation Model, Technology Acceptance Model, and Cognitive Model are viewed as the most popular frameworks that discuss the continuous intention to use information system. The combination of these three models has led to the creation of Technology Continuance Theory (TCT). TCT postulates that five prominent constructs or antecedents are depicted as key indicators in explaining the users' intentions for continuous use: (1) confirmation, (2) perceived usefulness, (3) perceived ease of use, (4) satisfaction, and (5) attitude. Furthermore, TCT adds to the argument on the consumers' continuance adoptions by assimilating satisfaction and attitude into a single construct.

The digital economy provides companies with financial stability and highly developed technological tools to run businesses based on their operations’ transparency. Business stability is formed due to the introduction of a competence-based management system in financial organizations in the Russian corporate sector.

In terms of the digital economy as financial and technological companies, we consider large banks and other financial organizations to develop risk-oriented technologies for managing financial stability based on digitization.

The main aim of this chapter is to describe the features, the factors, and the conditions for the competence-based management development system. It highlights the role of the system for the banks and the financial technologies used by companies for sustainable development.