The Benefits and Costs of Fintech

Fintech refers to the use of the state-of-the-art technology to provide financial services. The development of fintech has been enhanced by massive data generation, advances in computer algorithms, and growth in processing power, which have been facilitated by broadband internet, cloud computing, and artificial intelligence. It is typically claimed that digital finance is boosting financial inclusion and that digital financial inclusion is conducive to economic growth. While most of the views expressed on the desirability of fintech are optimistic, it is plausible to suggest that the introduction of digital finance should be judged in terms of costs and benefits.