Question

Fintech revolution and implications for corporate governance

Answer 1

Financial technology (Fintech) is used to identify new technology aimed at improving and automating financial services delivery and use. Fintech is used at its heart to help companies, business owners, and customers better manage their financial activities, processes, and lives by using specialized software and algorithms that are increasingly being used on computers and smartphones. Fintech, the term, is a "financial technology" hybrid. Once fintech appeared in the 21st century, the term was first applied to the software used by existing financial institutions ' back-end systems. Nevertheless, since then, there has been a shift towards more consumer-oriented products and thus a more consumer-oriented concept. Fintech also includes various markets and industries such as education, retail banking, crowdfunding and non-profit, and, to name a few, investment management.

Financial technology, also known as FinTech, has made the lives of billions more accessible and even integral to their daily lives by making financial services and products more accessible. For example, FinTech enables payments to be processed quickly across the globe for low fees, or individuals to purchase and sell online securities directly in the stock market without intermediaries ' advice. The sharing economy, the market for consumption of unused assets, facilitated by social media, is also often powered by FinTech companies as an additional example.

RegTech's rise in profitability is primarily the result of increased government regulation in the post-2008 financial world, where enforcement is a key governance feature, and risk management is a crucial regulatory strategy. RegTech solutions have helped to address the needs of the industry by automating corporate governance and regulatory processes in a more effective and efficient way.

RegTech technologies ensure businesses are up-to-date with the latest regulatory changes, reduce the probability of human error, and increase the overall pace of governance by offering creative risk management and cybersecurity resources. Among these are also the common Bug Bounty programs that invite people to hack into systems of organizations to find faults in return for rewards. While these programs were initially spearheaded and primarily relevant in the private sector, the public sector has also begun to show interest.