Question

Discuss the Securities and Privacy issues of Financial Technology (FinTech) and how FinTech will revolutionize the future of banking industries, discuss holistically.

Answer 1

Fin tech short for financial technology companies in recent years have made a lot of progress and have received lot of attraction from investors as well as governments around the world. The major reason for the popularity of the fin tech companies is its ability to increase its outreach of services to vast range of customer at effective cost. The fin tech is slightly different in terms of how it provides it services in comparison with traditional banks. With the rise in use of mobile devices the fin tech companies can penetrate to even the remotest place of the economy where the traditional bank services might not be financially feasible. They are also able to provide services like faster payment, online transfer, loan processing, deposit and withdrawal facilities more quickly and more cost effectively than other banks and it seems that with the rise in technology the Fin tech companies will continue to grow. However, this has raised some of the security concerns. Since the transactions are being done online then cyber threats have increased significantly. The personal data of people often are leaked and lost and can be easily misused by others. The financial data like card number and pin are often leaked and misused by the hackers. In future for fin tech companies to be able to gain the trust of the customers it is important that they are able to have strong system in place with which they can protect the customer data.