Potential negative effects of Fintech on the financial services sector. Examples from the European Union, India and the United States of America
Pejkovska, Maja (2018)
All rights reserved
Julkaisun pysyvä osoite on
This paper examines the potential negative effects of Fintech on the global financial services sector. Due to the broad scope of Fintech the paper focuses only on three elements i.e. blockchain & cryptocurrencies, alternative payment methods and investment & banking and uses arguments and empirical evidence that refer to three geographic and political regions i.e. the EU, India and the USA, in order to analyze the influence of Fintech companies on traditional financial services providers, the reasons behind Fintech’s quick development and expansion along with details on the current status of Fintech regulation in the EU, USA and India. The analysis shows that current regulation of Fintech in the aforementioned regions is inappropriate and could lead to potential negative effects on the global financial services sector such as corruption of cybersecurity, infringement of data privacy and utilization of Fintech services for illegal purposes. Therefore, authorities in the EU, India and the USA need to focus on creating suitable regulations for Fintech in order to mitigate potential negative effects.