FinTech and Its Disruption to Financial Institutions

Abstract

This chapter studies how FinTech is transforming traditional financial institutions (FIs). This chapter achieves the four related goals. First, it discusses the current stage of FinTech development in different areas such as crowdfunding, payment, blockchain, and cryptocurrency. Second, it examines how each FinTech development affects traditional FIs, in both positive and negative ways. Third, it explores how FIs are currently managing FinTech innovations. It also suggests ways through which these institutions could best utilize FinTech to better serve their customers and eventually optimize the overall financial system. Finally, following the book's focus on man's role at the center of technology advancement, this chapter discusses whether FIs' customers' needs are still placed at the center of FIs' incentives to adapt new technology, and if not, how can we focus back to the people that the financial system ultimately serves.