Fintech and Cbdc - Modern Trends in Banking

Abstract

Financial Technologies, or abbreviated FinTech, is the name used for companies that develop or use the latest information technology in order to improve financial services. Their development requires considerable experience and knowledge from the existing financial market and banking. These companies focus on the end user in order to develop the best technological solutions for providing financial services by observing and studying their needs and habits, with the help of rapid technological development in the IT sector, on the one hand, and on the other hand, the slowness and imposition of strict conditions for the banking sector and its corresponding regulations. The emergence of such companies lately and their rapid penetration into the market has begun to threaten the position of traditional banks and even induce customers to leave the traditional financial institutions such as banks. Banks are becoming aware of the growing competition from Fintech companies and are trying to find satisfactory solutions to keep their customers. At the same time, in the era of general currency digitization and the development of crypto-currency, banks also face the challenge on the other side, which comes from the Central Banks. Central banks have begun to consider issuing their digital currency CBDC-the central bank digital currency, or the digital form of existing money as a legal means of payment, such as current banknotes and coins. This changes the direction of supply of money for the new digital economy from the state, that is, from the level of the Central Banks, which would change from different forms of crypto-currency, such as bitcoin etc. at CBDC. These banks are facing new challenges because the Central Banks can become competitors to commercial banks in the segment of deposit and payment transactions. This sets new tasks and regulatory challenges to the banking system in terms of carefully regulating the relationship of the Central Banks as regulatory institutions and systems of commercial banks in the future.

The Necessity of Digitalization of the Banking System - A Chance or a Threat to the Development of the Banking Market?

“…Reducing costs per transaction is one of the goals of every business. This goal exists in order for the bank to make higher profits, but also in order for customers to have lower costs (Jovic et al, 2019). Several studies show that the highest costs per transaction are in the case of rolling banking operations in the traditional way, i.e.…”

Toward stock price forecasting on newly acquired belex dataset

“…(IMF, 2022) According to Kagan (2023) of fintech "refers to any application, software, or technology that allows people or businesses to digitally access, manage, or gain insights into their finances or make financial transactions." Jović et al (2019) and Jourdan et al (2023) fintech is the name used for companies or new financial industry that develop or use the latest information technology in order to improve financial services and activities or to introduce new one. Furthermore, the term mainly connects with companies that implement information technology (IT companies) services to banks and other financial institutions (IMF, 2022).…”

“…Moreover, Alt et al (2018) stressed that fintech is revolution that had evolved from offline, hierarchical, process-oriented organizations to digital, agile, customer-centric system and stated. Complementary development of fintech will require cooperation between academia and industry (Jović et al, 2019). Fintech has been applied to many areas of finance.…”