A STUDY ON GROWING IMPORTANCE OF FINTECH AMONG FINANCIAL SERVICES PROVIDERS

Abstract

Financial intermediaries arise due to knowledge asymmetries and economies of scale and diversification. Frictions and variables impact market structure. Digital innovation has improved system connectivity, processing capacity, prices, and data creation and use in finance. These changes have created lower-cost competitors and business models. Technology has improved information sharing and transaction costs, allowing financial services production to be separated. Niche players unbundled financial services, allowing customers to customise product packages.