IndexIntroductionContextThe Impact of FintechFintech in BankingBig Data and Risk AssessmentSecurity and Customer ExperienceDigitalization of TransactionsNext Generation Products and ServicesSubstantial Change in Human ResourcesFintech in BangladeshResultsReferencesIntroductionThe term " fintech” appears to be a fusion of the two words “financial” and “technology” which are used to describe any technology used to provide financial services to end consumers and businesses. Therefore, the application of fintech ranges from mobile banking and insurance to cryptocurrencies and investment apps. In general, fintech involves using any entity to perform or connect to desired financial services via the Internet, thus allowing the user to participate in transactions such as money transfer, lending, loan management, and investments. A real-world example of fintech could be apps like PayPal or Venmo through which many of our daily transactions take place, from paying salaries to simply casual shopping at a grocery store. Fintech has integrated into our lives without us even realizing how dependent we have become on it. It is quite difficult to imagine that fintech allows a user to be able to open a bank account on the Internet, without having to be physically present in the bank and even allows users to use their phone as a "digital wallet" to carry out our monetary transactions. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Right now, globally, emerging fintech technologies would include artificial intelligence (AI) and Big Data. Artificial intelligence for the fintech industry would be used to predict changes in the stock market and provide insights into the economy, thus enabling companies to better understand and serve their customers. So Big Data, for the financial sector, is also used to predict customer investments and market changes and create new strategies and portfolios. It also allows companies to analyze and mitigate risks on their future investments through big data analytics. Like all technology, there are some drawbacks to fintech, such as how it possesses potential threats to traditional financial marketing methods. There is a concern about how it might replace old methods, but we simply cannot ignore the possibilities of what the integration of fintech would reveal to its users. Context To better understand fintech it is essential to know its history. According to a study by Arneris, Barberis & Ross, the key periods in the fintech timeline are divided into three main timelines. The first era is between 1886 and 1967, as this is the period when rapid transmission of financial information began to occur. This is also when we first got transatlantic cable and Fedwire along with credit card technology in the US. The second era spans from 1967 to 2008, when we were introduced to ATMs, the digital stock exchange, online banking, and the initial creation of e-commerce business models. The third era includes the current period, from 2008 to today, in which the public mentality has shifted from traditional financing methods to a more digital one. We had the launch of Bitcoin, which happens to be a cryptocurrency, and we had a major impact on the financial markets globally. We have also seen an increase in the reliance on digital payments through appssuch as Google Wallet and Apple Pay, whose growth was made possible by the massive influx in smartphone use. Today, according to the 2017 Fintech Adaptation Index, the countries with the highest rate of fintech usage are China (69%) and India (52%). China, India and other emerging markets have never had time to develop Western-level physical banking infrastructure, which has left them more open to new solutions. In the case of China, fintech penetration is well above the global average adoption (33%) and the emerging market average (46%). In the context of Bangladesh, services in the banking sector incorporating heavy use of fintech are yet to begin, but other forms of its implementation exist. Mobile phone apps like Bkash, Rocket, and Upay allow users to make currency exchanges more seamlessly without the physical need for cash. Apps allow users to be more efficient and also provide them with security since they don't have to carry cash with them. Overall, the uses of fintech in Bangladesh are still at a relatively early stage, but we can imagine quite vividly that it will become a much more widely used platform. intuitive data products and services. Fintech has also lowered the barriers to entry for new businesses, along with established financial institutions, to join the evolving sector and has thus given rise to a complex web of cooperative competition. There are four categories of Fintech users: 1) B2B for banks and 2) their corporate customers, 3) B2C for small businesses, and 4) consumers. Mobile banking trends, increased knowledge, data, access analytics and more reliable decentralization will create opportunities for all four groups to engage in previously unimaginable ways. Younger consumers are more aware of fintech and tend to be the most active users of fintech. The fact is that customer-focused fintech primarily targets millennials as this segment has enormous size and rapidly increasing earning potential. Many fintech observers believe that millennials are the primary target of fintech due to the size of the market rather than their interests and capabilities. So fintech can cater very little to older generations as their problems are not adequately addressed. Before the advent and adoption of fintech, a start-up or entrepreneur had to physically visit banks to seek funds and set up infrastructure, such as a landline. connected card reader and relationship with the credit card provider if they intended to accept credit card payments. Now fintech has made these processes simpler and hassle-free for them. Fintech in Banking Fintech is gradually changing the shape of the global financial system. With the collaboration of fintech startups and traditional institutions, things like P2P lending at your fingertips, crowdfunding, cryptocurrency payments, and automated financial advisors have evolved over time. In the beginning, fintech startups and traditional finance banks were rivals and competed with each other to attract customers. But things have changed now. Both now work side by side due to the disruption to financial services caused by fintech. Together, they are now able to provide their customers and businesses with better customer service, greater financial security, more opportunities, and so on. Big Data and Risk Assessment Big Data is the huge volumes of structured and unstructured data sets stored electronically that can be analyzed and used to reveal trends and patterns related to human behavior. Big Data is usedin fintech to offer more personalized financial services and products for both existing and potential customers. Advanced technologies such as the implementation of artificial intelligence and machine learning algorithms can detect fraudulent transactions by identifying unusual user activities based on their behavioral patterns. Security and customer experience Another impact of fintech on banks is changes in the protection of customer personal data and customer experience. Since fintech is primarily based on digital and mobile applications, the risks of data breaches have increased in recent years. Fintech companies are therefore investing more in their cybersecurity infrastructure and cloud services to ensure better customer experience through advanced techniques to detect automated attacks on personal data and digital wallets. Digitization of transactionsThe volume of mobile payments has increased significantly in recent years; thanks to fintech. Despite easy access to transactions 24/7, there are still customers who prefer traditional banking services. These digital transactions are now more innovative and will also attract these conservative customers. Fintech has enabled an omnichannel banking system that allows users to transact across web platforms, applications and social networks. Fintech has also reduced transaction fees, improved transparency and reduced the risk of error. Next-generation products and services Banks are adopting innovative technologies to bring more cutting-edge products and services to their customers, such as the following: Digital-only banks that have no physical assets and only provide digital services. Joint current accounts that deal with different currencies, card types and user categories, allowing customers to keep track of their expenses and manage their savings. Voice and facial recognition techniques are applied to provide access to user accounts and keep them protected from unauthorized access. Augmented reality/virtual reality (AR/VR) gives financial institutions an edge over their rivals by providing their customers with a three-dimensional experience. Substantial change in human resources Financial technology has not only influenced the evolution of banks' business models and infrastructures, but also caused significant changes in their human resources. Now banks and other financial institutions are hiring employees with both financial and technology skills and experience. This has opened new doors for young people to choose the most suitable career path that nurtures their interest and skills. Positions such as cybersecurity analysts, data specialists, product managers, compliance experts etc. are gaining popularity as career choices for young people. Fintech has also made it easier for younger generations to choose career paths that will be relevant to them in the coming years. This has also created a driving force for companies to invest more in their human resources to develop technical skills by providing training to existing staff, organizing educational events, etc. Fintech in Bangladesh Fintech is revamping financial services for both businesses and consumers not only across the world. globe but also in Bangladesh. Bangladesh has embraced fintech and moved into emerging markets. In Bangladesh there was a large unbanked population that was not part of the modern financial sector. Fintech has been able to change this scenario. The Government of Bangladesh has been working relentlessly on the “Digital Vision ofBangladesh” which has four key elements: human resource development, people involvement, civil services and use of technology in business. As the use of technology in businesses is a crucial part of the vision, fintech has played a significant role in achieving this goal. One of the platforms of fintech is mobile financial services (MFS) which has made the most notable improvement over the years by financially including 47% of the population. Now these people have convenient and convenient access to financial products and services such as transactions, payments, savings, credit and insurance. Financial services such as microfinance institutions (MFIs) are creating new possibilities to bring the rest of the population under the umbrella of financial institutions. services. MFIs are the primary vehicle through which 90% of Asia's 180 million poor families can be financially involved. Since these people cannot afford high transaction and loan repayment costs, MFIs can represent a cheaper route to financial inclusion for them. In Bangladesh, MFIs have been instrumental in achieving greater financial inclusion, but its growth has become stagnant in the last two years after the advent of agent banking. Although social inclusion is not the main focus of microfinance institutions, they are still serving customers with savings offers and technological support. MFIs in Bangladesh have a huge customer database that they can use to leverage the potential of fintech. The MFS industry has not been able to unleash its real growth capacity due to limitations in loan provision. This indicates a growth opportunity for MFIs to merge with MFSs to enter the untapped market. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Results Financial technology is often described as a negative force that threatens the traditional banking system. It is still a widely held thought that fintech is transforming the way people and businesses connect to their banks and the way banks manage their back office operations. However, as stated by François de Maricourt, CEO of HSBC Bangladesh, fintech actually compliments banking institutions rather than threatening them. Financial technology innovation represents an evolution rather than a revolution of traditional banking. It is understandable that since the global financial crisis of 2007-2008, regulation has constantly evolved and become more complex. But the goal of financial technology is only to make financial services more efficient, so that customers can get better services from their banks. The data itself from various research shows how the use of technology can improve the diversity of financial services. According to data from the Bangladesh Telecommunication Regulatory Commission (BTRC), as of the end of February 2017, Bangladesh had 67.25 million Internet users and 129.58 million mobile phone subscribers, making the mobile phone a powerful means of carrying out many other commercial activities as well as communication. Mobile financial services operated by banks have seen rapid growth and have become an important tool of commerce to extend banking services to the unbanked/banking population. There are 52.68 million mobile bank accounts registered as of May 2017, as per the Bangladesh Bank website. However, despite this rapidly growing number, cash is still there>.