This thesis researched the innovative edges of the Fintech (financial technology). Fintech has been rapidly penetrating the financial markets by filling in the gaps left by the existing financial institutions and significantly improving the user experience. Firstly, the research briefly described the historical evolution of Fintech. In the subsequent sections, the paper aimed to demonstrate the innovative changes from Fintech in different areas, including the online banking and the payment process for both private and corporate customers. Additionally, the research also identified Fintech's success factors and its real-life applications. Based on which, the study analyzed its disruptive effects on the financial sector, the adaption process of the financial institutions as well as the potential to develop the financial technology in the future.
The research topics have been studied both theoretically and empirically by validating the hypotheses against various credible data sources to provide the various insightful perspectives. The research also focused on the complexity of the digital service transformation in the Fintech era. Specifically, the research topics of the study addressed the challenges from the financial institutions' point of view, their initiatives to move along with the competition and the widely accepted approach to cope with the Fintech explosion. The primary source of the exemplary data has recently been collected by major financial market research corporations such as PwS, Capgemini and KPMG.
The results of the research evidently confirmed the significantly growing roles of Fintech in the modern economics and suggested the checkpoints for digitizing the existing business culture. It has been exceptionally challenging for the financial institutions to adapt the new technological advancements; thus the paper also demonstrated the alternatives for innovating the aging business operations while minimizing risks at the same time.