Among the hot research topics, Fintech is leading the trend in terms of the newest technology applications. The relatively new emerging paradigms in various sciences, such as geometry (fractals), physics (quantum), and database systems (distributed ledger—blockchain), seem to potentially contribute to a greater shift in the framework of the finance industry, bringing also some concerns (cyber-threats). Consistent and extensive investigation of the reasonable potential impact of these new models (and their underlying technologies) is performed, and then tested through a SWOT analysis, as the main objective of this research. This research confirms that information availability and the increasing interconnection of crosswise applications of each discovery to the different fields of science is determining the rapid succession of revolutions identified by evident large shifts in economic paradigms. The growing computing capacity and the development of increasingly powerful predictive software are leading to a competitive, extremely dynamic, and challenging system.
Top1. Introduction
In this chapter, although limited to a general qualitative overview, the authors carried out an analysis aimed at highlighting not only the exposure of the financial sector to the technologies (FinTech) that are driving its exponential development, but also the inferences with different scientific fields, such as geometry (fractal), physics (quantum), and database systems (blockchain distributed ledger). The potential impact of each scientific progression on Fintech is then assessed through a SWOT analysis to verify and systematically confirm the assumptions.
Considering that many sciences are witnessing exponential progress thanks to globalization and the easier dissemination of information, and given that social and technological revolutions have always been the result of a mix of innovations, it would be limiting to focus only on a single driving sector for the Fintech development. An analysis of the possible and potential interactions of different fields of science with the Fintech industry is, therefore, undoubtedly relevant and interesting (Khang & Quantum, 2023).
1.1 Fintech Origins and Definition
Fintech is undoubtedly a very popular and trending topic, especially when it comes to considering its impact in the finance industry. It is, therefore, considered useful to define its origins to better identify the period in which to contextualize its evolution, in parallel with the scientific and social revolutions that are shaping it. It is possible to reasonably confirm that the digitization of finance has sharply accelerated in the last decade of the twentieth century, with the start-up of online banks, it is, therefore, not surprising that the term “FinTech” or “Fintech” was used for the first time by the chairman of Citicorp, John Reed, in 1990, as the contraction of Finance (Fin) and Technology (Tech).
The field of research relating to Fintech is, however, controversial depending on (a) characteristics of the technologies to be included; (b) identification of technologies that can be considered “new”, therefore including only “the new breed of companies that specialize in providing financial services primarily through technologically-enabled mobile and online platform”; (c) the willingness to include only technology-enabled business model innovations. A broader meaning is referred to any use of new digital technologies applied in the financial sector to perform forecasts, analyses, or to facilitate financial transactions.
As per the Oxford Dictionary, Fintech is identified as any “Computer programs and other technology used to support or enable banking and financial services”. Given this broad definition, alternative payment systems are included in the analyses, therefore overcoming the academic controversy as to which “cryptocurrencies” or “virtual currencies” (based on the blockchain) may or may not be framed within the Fintech scope, although not backed by any government (since decentralized) and, therefore, lacking any intrinsic value.