Big Data and Fintech Trends and Risks: A Critical Approach

Tajab Chowdhury

Financial technology (fintech) is an umbrella term to denote the industry comprising companies that use technology to make financial services more efficient. Although most are start-ups, traditional banks and financial institutions have also been gradually adopting their practices, either through acquiring existing companies or starting their own initiatives. The financial crisis of 2008 brought about public disillusionment with traditional banks and this, together with consumers’ changing behaviour and the coming of age of the millennials who form a new category of technological-enthusiastic consumers, has acted as a catalyst for fintech companies to proliferate, both in the global north but also in the global south. Such companies’ extensive use of digital technology brought about a new range of risks to the banking sector in relation to security, personal data protection and the constantly rising reliance on big data analytics, which is not always accurate or objective.

To survive in this new climate, established banks need to invest more in digital technologies and adapt comprehensively to the modern Internet age so as to be in a position to compete with fintech companies