Origin, Role and Supervision of Fintech Firms

Dusan Mesic

doi:doi:10.11648/j.ajasr.20210703.11

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Origin, Role and Supervision of Fintech Firms

Dusan Mesic

Published in American Journal of Applied Scientific Research (Volume 7, Issue 3)

Received: 28 May 2021 Accepted: 21 June 2021 Published: 8 July 2021

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Abstract

The changes in national financial systems during the last two decades are reflected, inter alia, in the emergence of Fintech firms. The name is a portmanteau from the words finance and technology. These include online platforms for raising and lending funds, robots-consultants, crypto currency trading, securities trading, electronic payments, digital investment management. They do not have to comply with prudential regulations as banks. They have become competitors to banks in performing banking operations. In order for someone to do business with Fintech firms, it is enough to have a mobile phone. In their business, they are exposed to financial and operational risks. Financial risks can occur in the form of maturity mismatch risk and liquidity mismatch risk. Operational risks can be caused by human error and inadequate information systems. For ten years now, Fintech firms have been operating in European countries undergoing transition. The governments of these countries have also encouraged the proliferation of Fintech firms by establishment of innovation authorities. In recent years, the operations of Fintech firms have been more adequately regulated by supervisory institutions by enacting regulations that cover their operations. The European supervisory institutions have enacted measures that are related to business operations of Fintech firms, but despite these efforts, regional differences between EU member states are still present.

Published in	American Journal of Applied Scientific Research (Volume 7, Issue 3)
DOI	10.11648/j.ajasr.20210703.11
Page(s)	29-37
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Financial System, Fintech, European Countries in Transition, Supervision

References

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APA Style

Dusan Mesic. (2021). Origin, Role and Supervision of Fintech Firms. American Journal of Applied Scientific Research, 7(3), 29-37. https://doi.org/10.11648/j.ajasr.20210703.11

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Dusan Mesic. Origin, Role and Supervision of Fintech Firms. Am. J. Appl. Sci. Res. 2021, 7(3), 29-37. doi: 10.11648/j.ajasr.20210703.11

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Dusan Mesic. Origin, Role and Supervision of Fintech Firms. Am J Appl Sci Res. 2021;7(3):29-37. doi: 10.11648/j.ajasr.20210703.11

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@article{10.11648/j.ajasr.20210703.11,
  author = {Dusan Mesic},
  title = {Origin, Role and Supervision of Fintech Firms},
  journal = {American Journal of Applied Scientific Research},
  volume = {7},
  number = {3},
  pages = {29-37},
  doi = {10.11648/j.ajasr.20210703.11},
  url = {https://doi.org/10.11648/j.ajasr.20210703.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajasr.20210703.11},
  abstract = {The changes in national financial systems during the last two decades are reflected, inter alia, in the emergence of Fintech firms. The name is a portmanteau from the words finance and technology. These include online platforms for raising and lending funds, robots-consultants, crypto currency trading, securities trading, electronic payments, digital investment management. They do not have to comply with prudential regulations as banks. They have become competitors to banks in performing banking operations. In order for someone to do business with Fintech firms, it is enough to have a mobile phone. In their business, they are exposed to financial and operational risks. Financial risks can occur in the form of maturity mismatch risk and liquidity mismatch risk. Operational risks can be caused by human error and inadequate information systems. For ten years now, Fintech firms have been operating in European countries undergoing transition. The governments of these countries have also encouraged the proliferation of Fintech firms by establishment of innovation authorities. In recent years, the operations of Fintech firms have been more adequately regulated by supervisory institutions by enacting regulations that cover their operations. The European supervisory institutions have enacted measures that are related to business operations of Fintech firms, but despite these efforts, regional differences between EU member states are still present.},
 year = {2021}
}

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TY - JOUR
T1 - Origin, Role and Supervision of Fintech Firms
AU - Dusan Mesic
Y1 - 2021/07/08
PY - 2021
N1 - https://doi.org/10.11648/j.ajasr.20210703.11
DO - 10.11648/j.ajasr.20210703.11
T2 - American Journal of Applied Scientific Research
JF - American Journal of Applied Scientific Research
JO - American Journal of Applied Scientific Research
SP - 29
EP - 37
PB - Science Publishing Group
SN - 2471-9730
UR - https://doi.org/10.11648/j.ajasr.20210703.11
AB - The changes in national financial systems during the last two decades are reflected, inter alia, in the emergence of Fintech firms. The name is a portmanteau from the words finance and technology. These include online platforms for raising and lending funds, robots-consultants, crypto currency trading, securities trading, electronic payments, digital investment management. They do not have to comply with prudential regulations as banks. They have become competitors to banks in performing banking operations. In order for someone to do business with Fintech firms, it is enough to have a mobile phone. In their business, they are exposed to financial and operational risks. Financial risks can occur in the form of maturity mismatch risk and liquidity mismatch risk. Operational risks can be caused by human error and inadequate information systems. For ten years now, Fintech firms have been operating in European countries undergoing transition. The governments of these countries have also encouraged the proliferation of Fintech firms by establishment of innovation authorities. In recent years, the operations of Fintech firms have been more adequately regulated by supervisory institutions by enacting regulations that cover their operations. The European supervisory institutions have enacted measures that are related to business operations of Fintech firms, but despite these efforts, regional differences between EU member states are still present.
VL - 7
IS - 3
ER -

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Dusan Mesic

National Bank of Serbia (Ret.), Belgrade, Serbia

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APA Style

Dusan Mesic. (2021). Origin, Role and Supervision of Fintech Firms. American Journal of Applied Scientific Research, 7(3), 29-37. https://doi.org/10.11648/j.ajasr.20210703.11

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ACS Style

Dusan Mesic. Origin, Role and Supervision of Fintech Firms. Am. J. Appl. Sci. Res. 2021, 7(3), 29-37. doi: 10.11648/j.ajasr.20210703.11

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AMA Style

Dusan Mesic. Origin, Role and Supervision of Fintech Firms. Am J Appl Sci Res. 2021;7(3):29-37. doi: 10.11648/j.ajasr.20210703.11

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@article{10.11648/j.ajasr.20210703.11,
  author = {Dusan Mesic},
  title = {Origin, Role and Supervision of Fintech Firms},
  journal = {American Journal of Applied Scientific Research},
  volume = {7},
  number = {3},
  pages = {29-37},
  doi = {10.11648/j.ajasr.20210703.11},
  url = {https://doi.org/10.11648/j.ajasr.20210703.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajasr.20210703.11},
  abstract = {The changes in national financial systems during the last two decades are reflected, inter alia, in the emergence of Fintech firms. The name is a portmanteau from the words finance and technology. These include online platforms for raising and lending funds, robots-consultants, crypto currency trading, securities trading, electronic payments, digital investment management. They do not have to comply with prudential regulations as banks. They have become competitors to banks in performing banking operations. In order for someone to do business with Fintech firms, it is enough to have a mobile phone. In their business, they are exposed to financial and operational risks. Financial risks can occur in the form of maturity mismatch risk and liquidity mismatch risk. Operational risks can be caused by human error and inadequate information systems. For ten years now, Fintech firms have been operating in European countries undergoing transition. The governments of these countries have also encouraged the proliferation of Fintech firms by establishment of innovation authorities. In recent years, the operations of Fintech firms have been more adequately regulated by supervisory institutions by enacting regulations that cover their operations. The European supervisory institutions have enacted measures that are related to business operations of Fintech firms, but despite these efforts, regional differences between EU member states are still present.},
 year = {2021}
}

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