FinTech development opportunities and challenges

Abstract

Financial technologies are not widely researched sector, thus every year more and more attention is attracted from the public, other financial institutions and investors. The aim of this article is to determine the development possibilities and challenges of FinTech based on scientific literature. The opinions of various authors regarding the concept of FinTech are analysed. Moreover, the assumptions are made based on financial technology sector emergence and its business models. The first part of the article presents the structure of FinTech, its services and products, their development. Next FinTech’s development indicators are analysed in the second section: FinTech adaptation index and global investments in FinTech companies. Literature analysis, graphical representation, interpretation of collected data is used in the article. After analysis it was found that establishment of FinTech was conditioned by a favourable financial environment for the creation of innovations. FinTech system is supported by 5 countries – start-ups, government, traditional financial institutions, financial clients and technology developers. FinTech Adaptation Index shows that China is considered as a leading country in FinTech sector. Also, huge investments in FinTech companies shows that sector has favourable opportunities for growth and expansion.