Following on from an enquiry and explanation into the essence of the question at hand, this project delves into exploring the nature of Fintech and its rise. This project opens, from the offset, a deep and riveting consideration of this question of Fintech not only being a scrutinization of its tangible impacts – but rather, a question with much more metaphysical bearing.
The cultural, societal and technological impacts of Fintech are deemed pivotal components of this project, and as this paper ventures into the heart of the literature review – decades of scholarly and non-scholarly items of research are synthesised, critiqued and questioned - drawn to reason the impact that Fintech has historically manifest over the course of the previous 150 years – opening the argument that previous and proven trends in Fintech can be indicatively utilised to project possibilities for future movements in this industry. Transitioning the focus of the project from the historical to the present; the current and most novel developments in Fintech are correspondingly explored. We explore the impacts of three pivotal counterparts of today’s Fintech movements; including Algorithmic Technologies, Artificial Intelligence (AI) and Technological Products, and fashions these explorations in, both, commercial and corporate banking contexts. Strengthening arguments discovered over the course of the review in literature lead us to discover the sheer extent to which each aspect of Fintech had its progressive peaks and regressive troughs. This approach to the review of literature is sustained, as an enquiry and synthesis of informative sources is continued into the context of analysing the impacts of Fintech on the layman, as well as a breakdown of theories indicating the future of Fintech.
It is with this very metaphysical rationale that the conclusion of this project’s findings takes place. This project defines that Fintech is most definitely a progression, if not, a quintessential progression. However, its most novel developments have been castigated by a hindrance of regression that lies innate to all revolutions in history: the eventuality of cultural and industrial opposition. With this in mind, it becomes a question of our own attitudes and response to these regressions: as the industry follows a constant process of adapting to our changing needs, it is important that we, too, adapt to the ever-dynamic outcomes of Fintech.
Table of Contents
Abstract
Introduction
Literature Review
The Nature of Fintech and its Rise
Historical Roles of Fintech and its Evolution
The Present Role of Fintech
Algorithmic Technology in the Financial Markets
Artificial Intelligence in Corporate/Commercial Banking
Technology in Corporate/Commercial Banking
The Effects of Fintech on the Layman
Theories Indicating the Future of Fintech
Catching Up and the Production Models
Discussion
To what extent is Fintech a ‘Regressive Progression’?
Historical Patterns Indicating Progressive and Regressive Traits
Present Patterns Indicating Progressive and Regressive Traits
Progressive and Regressive Tendencies Within Algorithmic Intervention
Progressive and Regressive Tendencies Within Artificial Intelligence in Finance
Technologically Innovative Endeavours and their Progressive and Regressive Natures
Is Central Governance The Answer To Mitigating Regression?
The Essence of this Discussion; What Does The Answer Involve?
Conclusion
The Final Verdict
Suggestive Considerations for The Future
Evaluation
Research Objectives and Themes
This work explores the dual nature of Fintech, investigating whether its rapid development represents a true progressive leap or a regressive shift that threatens existing financial stability. The central research question examines the extent to which Fintech's revolutionary innovations impact societal structures, consumer trust, and global economic equity.
- Historical evolution of financial technology and its infrastructure.
- Technological impacts of algorithms and AI on corporate and commercial banking.
- Evaluation of "progressive" vs "regressive" tendencies in financial innovation.
- Analysis of economic models for future trends and the potential need for central governance.
- Synthesis of disparate ideological perspectives on Fintech's global influence.
Excerpt from the Book
The Nature of Fintech and its Rise
The fundamental essence of Financial Technology (Fintech) is one that has its root and passion driven by one intrinsic notion: the desire for technological change. However, in a world where technology and its dynamic, metamorphosing and nuanced nature composes the very fabric of our socio-economic existence – the true impact of Fintech and its exacerbating influence is beyond our comprehension, leading to unforeseen changes occurring in fields that were traditionally covered by banks.
Like all historical revolutions known to man, very little has come of ‘reinventing the wheel’, rather, Fintech is eponymously crafted out of the rationale that may be characterised as ‘standing on the shoulders of giants’ – with each revolution after the next being a seeming product of a relentless strive to improve the efficiency of the financial world, as soon as technology permits it.
Summary of Chapters
Introduction: Outlines the scope of the project, framing Fintech as a disruptive "Hadean upheaval" and introducing the core debate between liberal technological progress and conservative concerns regarding industrial regression.
Literature Review: Synthesizes historical and contemporary research to trace Fintech from its infrastructural origins in the 19th century to modern algorithmic and AI-driven platforms.
Discussion: Dissects the regressive and progressive nature of Fintech, using economic frameworks to evaluate whether central governance or market democratization provides the most stable path forward.
Conclusion: Synthesizes previous arguments to provide a final verdict, defining Fintech as a deeply progressive industry that necessitates a shift in attitude toward control and responsibility to mitigate its inherent regressive risks.
Evaluation: Reflects on the research process, highlighting the challenges of synthesizing vast, ideologically disparate literature to build a cohesive argument about a rapidly evolving industry.
Keywords
Fintech, Financial Technology, Algorithmic Trading, Artificial Intelligence, Regressive Progression, Financial Innovation, Digitalization, Central Governance, Economic Theory, Structural Change, Moral Hazard, Socio-economic Impact, Banking Evolution, Production Possibility Frontiers, Financial Stability.
Frequently Asked Questions
What is the primary focus of this research?
The work examines the dual nature of the Fintech movement, specifically analyzing whether its technological advancements constitute a beneficial progression or a regressive threat to the financial sector and society.
What are the core themes explored in the text?
Central themes include the historical evolution of Fintech, the application of AI and algorithms in banking, the resulting economic shifts, and the tension between unregulated technological innovation and the need for central governance.
What is the central research question?
The research seeks to determine to what extent Fintech can be classified as a 'Regressive Progression' by identifying the "progressive peaks" and "regressive troughs" within the industry's evolution.
Which scientific methods are utilized to evaluate Fintech?
The analysis employs economic modeling and quantitative theory, specifically utilizing the 'Input-Output Framework', the 'Rasmussen index of structural change', and 'Production Possibility Frontiers' to map potential future trends.
What does the main body of the text cover?
It covers a detailed analysis of Fintech 1.0, 2.0, and 3.0, scrutinizing specific sectors like algorithmic trading and AI-driven fraud detection, while balancing these advancements against risks like data breaches and structural unemployment.
Which terms best characterize this work?
Key concepts include institutional convolution, trickle-down economics, algorithmic intervention, moral hazard, and the democratic empowerment of the layman through technology.
How does the author evaluate the concept of 'Regressive Progression'?
The author argues that while Fintech is undeniably progressive in terms of efficiency and access, it carries inherent "hinderances" or regressive sub-effects, such as the potential for economic disparity and the erosion of traditional banking security.
What role does 'Central Governance' play in the author's argument?
The author presents Central Governance as a potential middle-ground solution—a framework that could manage the rapid, disruptive nature of Fintech, thereby mitigating "regressive" risks while still allowing for technological advancement.
- Quote paper
- Anonym (Author), 2020, The Rise of Fintech. A Regressive Progression?, Munich, GRIN Verlag, https://www.grin.com/document/946773
