Economic Basis of Digital Banking Services Produced by FinTech Company in Smart City

Abstract

The accelerated urbanization rate results in the birth of the Smart City concept, presupposing the more efficient use of digital technologies for the benefit of inhabitants and businesses. The idea of digital banking is one of the key issues in a smart city concept. The research should demonstrate that the efficient and effective way to produce such kind of services is to use the fintech companies’ facilities. Many researchers study fintech from a technological point of view, the contribution of fintech to general banking, the level of satisfaction of customers with fintech products. However, there is a gap in studying the economic basis of these companies. The research aims to determine the economic basis for the projects implemented by the fintech company and to determine the source of the efficiency of these companies in financial operations compared to the conventional bank. It has additional importance since the analysis of research devoted to technological solutions demonstrates a certain lacuna in the economic substantiation of such smart solutions. The results of this study are based on the implementation of traditional Cost-Benefit and Total Cost of Ownership analyses and include the developed cost and income functions, calculated Benefit/Cost ratio, and demonstrated the source of efficiency of fintech company compared to a traditional bank. Therefore, the activities of a fintech company in the area of digital banking received the economic ground, and this fact decreases the gap between intuitive comprehension of the necessity of the introduction of smart solutions in practice and the economic substantiation of this process.

National Culture and Financial Inclusion: Evidence from Belt and Road Economies

“…Following [57] three financial inclusion dimensions have been chosen: access, availability, and usage. A complete financial system should have as many users as feasible, implying that it must reach out to a large number of people [58].…”

Impact of Smart Economy on Smart Areas and Mediation Effect of National Economy

“…The study reveals the interrelation of the components within one country-Latvia. Latvia represents CEE countries and has rather good indicators of "smartness" [16]. Nevertheless, the fact that the research comprises only one country is a limitation.…”

“…As a result, for example, it is more beneficial to use resources without ownership. A small company that has almost no fixed capital can show better results in financial operations than the powerful banks due to sharing but not owning the facilities [16]. We live in the era of smart economy and must recognize, understand, and use these new realia.…”

“…• Smart Economy: turnover of SMEs due to e-commerce, employm intensive areas, ICT staff as percentage of total employment, ICT i vidual online consumption in the domestic market and in the EU of ICT products, and fixed assets as a percentage of GDP [16][17][18][19][20];…”

“…• Smart Economy: turnover of SMEs due to e-commerce, employment in knowledgeintensive areas, ICT staff as percentage of total employment, ICT input in GDP, individual online consumption in the domestic market and in the EU countries, import of ICT products, and fixed assets as a percentage of GDP [16][17][18][19][20]; • Smart People: Human Development Index, adult learning, number of students, expenditures on education, schooling years, number of higher educational establishments, % of 18-year-old students, and percentage of people often using the internet [24][25][26][27][28][29];…”