FinTech

Businesses have been forerunners in providing innovative techniques and technology to the market. These emerging processes, techniques, and technologies have disrupted the existing ones and met the requirements of the existing customers. Today's banking and financial sector is facing an unprecedented change wherein various new players are entering the market and disrupting the traditional modes of operation. These players are a part of the latest disruption in the banking and financial sector, which is popularly known as Fin Tech (which is an amalgamation of finance and technology). They are providing alternative solutions and business models that are overhauling the manner in which this sector and its customers function. This disruption not only opens doors for completely different business opportunities but also poses challenges to the existing set up of business. The chapter aims to study the emerging trends associated emerging opportunities and challenges of FinTech in the banking and financial sector globally.

Profiling Mobile Service Customers in the Spanish Market

This research aims to examine whether different user groups exist in the mobile services industry and to profile and characterize them in order to provide management recommendations for mobile service companies. To examine the users' behavior in the mobile services sector, customer segmentation by means of factor analysis and k-means cluster analysis is developed with data from 443 mobile service users. Further, a Manova test is conducted to confirm differences among the obtained user segments. Mobile service customers cannot be seen as a homogenous group, since different customer profiles coexist in the mobile service industry. More specifically, four user clusters emerge from the research findings, namely “pragmatic uninvolved,” “satisfied savers,” “prone-to-switch” users, and “service mavens,” the “service mavens” being the most attractive segment for mobile service companies. A behavioral-based segmentation is developed to extend the understanding of customer behavior in the mobile services field.

The Use of Technology Acceptance Model in Mobile Banking

This chapter aims to determine the variables that explain using mobile banking. This study identifies and investigates the factors that influence the adoption of mobile banking, and specifically focuses on the evaluation of mobile banking application with users or non-users. The research model includes the basic concepts of the technology acceptance model. The technology acceptance model (TAM) tries to explain the adoption process and underlying influencing factors in technology acceptance. The survey was conducted to gather data which was coded in SPSS 17. Confirmatory factor analysis was used to analyze data, and structural equation modeling using Amos 17 software was used to validate the research model. The result shows that perceived ease of use, perceived usefulness, and perceived normative pressure significantly influences customer attitude, which affects the adoption of mobile banking.

Financial Literacy for Financial Inclusion Using Mobile Technology in India

According to the RBI governor, technology-enabled financial information will spread financial literacy in an efficient and secure manner. India needs inclusive growth to pull millions out of poverty and mobile phone penetration can be a good opportunity. Consumers are exposed to a plethora of financial products but the knowledge is either not there or limited to make judicious choices. The successful implementation of financial literacy services would benefit rural people but it is a challenge to all stakeholders today. One-hundred twenty-five people all over India were selected for a survey and results point that rural poor accept mobile technology for banking related information but do not want to adopt the technology. There are various challenges for financial literacy in India discussed in the chapter. Also, opportunities are many for digital literacy and can be achieved if the challenges are overcome. All the stakeholders should put in concerted efforts at all levels to achieve financial inclusion through mobile technology disruption.

Continuance Usage of Mobile Banking Services Among Small and Medium Enterprises (SMEs) in Tanzania

The study examines the intention to continue using mobile banking services among SMEs in Tanzania. The study extended the ECS-IS model by adding three variables: ease-of-use, perceived trust, and attitude to address the existing challenges in continuance usage of mobile banking services. Data was collected using a self-administered questionnaire from company's owners and managers. A total of 287 responses were used in data analysis. SEM technique was employed to evaluate the measurement and structural models. The study found that satisfaction and attitude have a direct influence on continuance usage of mobile banking among SMEs in Tanzania. Furthermore, confirmation, perceived trust, and perceived usefulness have an indirect effect on continuance usage of mobile banking services among SMEs. The study provides useful insights which could be used by mobile banking service providers to improve banking services delivered through mobile technology. Furthermore, the findings will assist scholars in understanding the antecedents which affect continuance usage of mobile banking services among SMEs.

The New Financial System

This chapter shows the revolution that is happening in the financial system, having as main actor the technological companies—the fintechs—that don't have financial knowhow. The traditional banks didn't structure their business trying to attend the client's needs. The clients always suited themselves to banks' services. The fintechs are changing this reality by putting the client in another baseline, filling the gaps left by the banks, offering new services, and acting in places where banks have never gone before. The fintechs are offering these services with a lower price and more quality for the clients.

FinTech in the Saudi Context

With the constant development in FinTech globally, Saudi Arabia is a late arrival in the FinTech world. However, the FinTech growth pace in Saudi is fast and not slowing down. This fast pace is confusing stakeholders, including bankers. This chapter unpacks how FinTech is developing in Saudi Arabia, considers the challenges and opportunities that FinTech may be facing in Saudi, and discusses how these changes may affect current bankers and how future bankers can be ready to enter the new market. The study draws on interviews with professionals in the banking and FinTech industries and makes two contributions: It suggests that FinTech is affecting retail and long-tail clients of banks (i.e., the effect on core banking operations, such as corporate banking and treasury). Findings also highlight that professionals should upgrade their knowledge around matters necessary to retain their jobs in the sector. The study has implications for future bankers (i.e., university students), suggesting that university curricula should be updated to include relevant knowledge and professional placements.

E-Banking Security

The online banking industry has overgrown in recent years and will continue to grow as economic organizations remain to encourage customers to handle online banking transactions such as money transfers, access to account information, or payment of monthly bills. During this period, internet criminals and fraudsters attempting to steal personal customer information hijacked online banking. This article proposes reviewing the ways by which fraudulent activities are performed and what banks are doing to prevent such activities, as well as the new security measures that banks are using to increase customer confidence. Therefore, the authors present the threats, challenges to address such threats, some trends, and future landscapes regarding online banking security.

Fintech Ecosystem and Banking

In this study, Fintech platforms are compared to the traditional banking system. This comparison is based on the banking activities offered by Fintech platforms and the results of these activities. In the study, firstly, a general evaluation is made in the comparison of the Fintech platforms to the banking system and then the situation in Turkey is analyzed. It is clear that Fintech platforms have developed financial markets. Moreover, banks have the potential to adapt to the digital innovation advantage of Fintech platforms. In this study, the banking system and Fintech platforms are considered as competing institutions as well as supporting and transforming each other. Services within the scope of banking activities change as a result of digital innovations. As a result, it is clear that the financing system enters into a revolutionary process. This study contributes to the literature in terms of the analysis of the relationship between banking and Fintech, which is based on Turkish Fintech Ecosystem.

Regulating FinTech Businesses

The Malaysian finance industry is governed by Bank Negara Malaysia (BNM) and Securities Commission Malaysia (SC). BNM governs the banking and insurance industries and the SC regulates and develops its capital market. Both authorities have issued regulations to cater for the proliferation of fintech businesses. For example, BNM issued regulations on digital currency exchanges, electronic-know your customer requirements for fintech companies facilitating remittances, and a regulatory sandbox framework for fintech businesses. Similarly, the SC issued a digital investment management framework, another to facilitate equity crowdfunding, peer-to-peer lending, and digital asset exchanges, and the instrumental digital currency and digital token order. All were issued to encourage innovation in the industry, manage disruption, mitigate risks, and ensure consumer protection. This chapter will explain the steps taken by Malaysia's financial regulatory authorities in dealing with fintech-based companies, critically review the regulations, and recommend some ways forward.