Week 2 Summary 1
Financial Technology, which also known as ‘fintech’, describes an emerging financial services sector in the 21st century. It also describes an enterprise or organization that aims to address the improvement of financial services by using the modern technology and software. Fintech has become a prevalent term in recent years due to a several of driven forces, which include customer needs and wants, market conditions, technical development, and cost-saving requirements. Both professionals and academics are requiring for a precise and latest awareness of fintech due to the adoptions and planning of new technologies (Gai, Qiu, and Sun, 2017).
The benefits of financial technology (fintech) to business which is it can be able to monitor or forecast the financial risks in the markets. This technology helps a business organization to obtain valuable information from the large volume of data pool to improve the financial services or offer new services to the customers. Fintech is also applied in an organization’s management to solve the business problems by using the advanced computing techniques (Gai, Qiu, and Sun, 2017).
One of the limitations of this technology to business is the implementations of fintech have empowered the cyber risk management, which means the released data that is available online is not secure and can easily be stolen easily by third parties (“The Advantages and Disadvantages of Fintech for Your Finances”, 2017). Other than that, a business organization might lack of the compliance knowledge or capabilities to use the latest technology. So, the organization has to pay extra cost to hire professionals to train the employees (Wirth, 2017).
According to Gai, Qiu, and Sun (2017), they “proposed the Data-Driven Fintech Framework (DF2) to facilitate and standardize future FinTech researches and technical deployments”. In conclusion, financial technology (fintech) is faster, easier and quality of service to both business organizations and the consumers.