Main Article Content
Abstract
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. block chain & crypto currencies, alternative payment methods and investment & banking and uses arguments and empirical evidence that refer to three geographic and political regions i.e. the India, 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 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 cyber security, infringement of data privacy and utilization of Fintech services for illegal purposes. Therefore, authorities in the India need to focus on creating suitable regulations for Fintech in order to mitigate potential negative effects. This article provides a discussion on some issues associated with digital finance – an area which has not been critically addressed in the literature. Digital finance and financial inclusion has several benefits to financial services users, digital finance providers, governments and the economy; notwithstanding, a number of issues still persist which if addressed can make digital finance work better for individuals, businesses and governments.