Fintech as a concept of functional economic science

Abstract

The article is devoted to the disclosure of the theoretical foundations of fintech as a concept of functional economic sciences (finance, accounting, economics). Nowadays, there are various approaches to the disclosure of this concept, which does not contribute to the development of an adequate economic policy of the state and legislative regulation in this area. Historical approach, content analysis, system and functional approaches were used to reveal the content of the definition. The analysis of existing approaches allowed us to conclude that there are four basic approaches to the interpretation of fintech: fintech as a technology, fintech as an innovation and a business model; fintech as an industry, fintech as a service. All of them have both weak and strong arguments in their favor, but none of them can exist without the latest technologies that form the basis of fintech. As a result of the study, it was proved that fintech is an innovative financial industry based on digital technologies, which lead to the intensification and growth of the efficiency of financial services. The statement about the emergence of a new fintech industry is grounded in the institutional part as a set of business entities that develop and implement modern innovative technologies in the financial sphere. Regarding traditional financial market intermediaries, it is worth talking about the transformation of their business models under the influence of modern innovative technologies. The latter happens without changing their functional role in the financial market.

Keywords

• fintech (financial technologies)
• financial market
• innovation
• digitalization
• fintech companies
• fintech industry
• banks