The impact of Fintech in the financial sector

This thesis aims to understand Fintech and its impact on the financial services sector. The
planet has experienced a dramatic shift in our daily lives because of technological advances.
Each of us has been impacted or affected by the new technologies in a broad number of ways
(Stever and Muroyama, 1998).
The financial services sector is no different, and that is the reason why over the last decade,
has attested changes both in regulation and in the manner in which conventional financial
services communicate with customers (BBVA, 2019c). Part of this reform derives from the
developments in financial technology, or from-as we call them now- Fintech (Zigurat, 2019).
After the last financial crisis, many customers have ceased relying on traditional financial
institutions to benefit from the advantages offered by these startups and financial institutions
based on technological solutions (Contri et al., 2017). FinTech is now revolutionizing the
market as hundreds of young start-ups are developing new creative financial products and
services for consumers (Dietz et al., 2016). These new entrants challenge the conventional
model or structure for financial services (Dietz et al., 2016).
The study is to dig deeper into the financial services sector and to provide a better perspective
into where the industry is today and where it will be in the future. At the beginning of the
thesis, the author would review academic books, newspaper articles and corporate business
papers provided by industry experts. The decision of not doing interviews relies on the fact
that the opinions that were interesting for the thesis were from professionals working in both
the financial and the fintech industry, and it was difficult to reach them.
The conclusion of the impact fintech are having in the financial world, that will be better
explained later, is that they have appeared as a powerful tool that provides advantages for
both Fintech and clients, reduce costs, and increase operation’s speed, but that at the same
time needs a lot of development till we can see the true improvements they bring (De La
Torre, Torralba and Rivera, 2018)