The digital economy is a fundamental feature of sustainability. The economic, social, and environmental dimensions of sustainability stand up for digitalization and digital transformation projects. In order to understand and practice the digital economy, the goal of our paper is to evaluate accurate variables regarding fintech scope for discussing the efficient implication of these projects. The principal component analysis is used to investigate and evaluate the sustainable digital economy indicators. An empirical case from health care services in Africa from World Bank projects discusses this challenge. Results help produce an effective understanding of how the digital economy enables facing fintech challenges in Africa.

Using the World Bank Global Findex Database for 91 countries in 2014, 2017, and 2021, we examine whether fintech levels influence bank performance and whether fintech’s interaction with GDP per capita causes differential effects on bank performance globally. Since fintech levels were already very high for rich countries when the World Bank started providing fintech development statistics in 2014, we estimate AbFintech by regressing fintech levels on GDP per capita by year. AbFintech is the difference between the fintech level and its fitted values. Then, using multiple regression analyses, we investigate the impact of AbFintech on bank performance worldwide, focusing on the differential effects of AbFintech and GDP levels on bank performance. We find AbFintech significantly increases bank performance, primarily in less developed countries. Specifically, AbFintech increases banks’ ROA in the least developed countries and net interest margin in the 75th percentile countries. Also, AbFintech decreases the cost-to-income ratio in the 75th percentile countries, while it increases the ratio in the most developed countries. AbFintech does not affect the ratio of noninterest income to total income, regardless of the level of economic development.

Within financial technology, Blockchain is a topic that is receiving a lot of attention and discussion. There has been a meteoric rise in engagement and recent studies on this technology. The mainframe, personal computers, the Internet, and mobile applications follow the breakthrough in the history of computing. In qualitative research, the investigation was synthesized utilizing the documentary approach, including content analysis for a review article. The results reveal that Blockchain Technology is getting a foothold not only in the financial industries but is also likely to disrupt other areas like healthcare, real estate, the legal industry, security, government, education, rentals and ride-sharing, charities and aid organizations, and politics. Currently, several projects are researching the possibility of implementing the Blockchain as a structure to support them; as a result, we will soon see that it truly becomes the technology of the future. Furthermore, qualitative interviews or focus group discussions could give more insight into details. In addition, a quantitative approach for further research could provide a generalized explanation.

This article discusses the impact of new financial technologies, such as Non-Fungible Tokens (NFTs) on traditional industries such as art, sports, and game, while focusing on the recently formed "Metaverse" market. As a component of the overall blockchain ecosystem, the history of the establishment of NFT is analyzed. The impact of Web3 and intelligent contracts on Fintech are also investigated. This study examines the general trends in the NFTs market, including their price formation, price-influencing factors, and available patterns. Then the paper provides classifications and examples of NTFs. Besides, the technological application and primary technical path are also described. Later, the paper assesses the market's and marketplaces' accessibility. Finally, this study evaluates the management applications of NFTs and analyzes existing platforms, and demonstrates how they can be implemented effectively in various settings. The concluding portion discusses technological obstacles. The study concludes with a discussion of potential applications for the results and prospects for future research.

The purpose of this article is to address two questions that will aid researchers in understanding FinTech’s inception, development, and potential impact on the stability of the financial system. First, it explains why financial technology is a current phenomenon. While many of the underlying technology for FinTech breakthroughs have been around for some time, it is only recently that financial institutions and entrepreneurs have begun to apply them to financial goods and services. Supply and demand factors in "conventional" financial innovation have been studied, and they have been found to converge, leading to a high rate of innovation. And second, this article explains why FinTech is being covered in greater depth than other types of innovation. This study introduces the concept of "depth" of innovation as a means of answering this question. The more fundamental the innovation, the more it will affect the financial sector. In this paper, we demonstrate that many recent developments in the field of financial technology (FinTech) are truly revolutionary advances, with far-reaching implications for the financial services industry. In addition to the benefits of more adaptability, higher transformational potential might bring increased risk to economic security.

The present-day financial system is being influenced by the rapid development of Fintech (financial technologies), which are technologies created to improve and automate traditional forms of finance for businesses and consumers. The topic of Fintech as a financial disruptor is gaining popularity in line with the swift spread of digitalization across the banking industry, whereby this paper contributes to the field by presenting a novel bibliometric analysis of academic literature related to Fintech as a financial disruptor. The analysis is based on metadata extracted from the Scopus database through the VOSviewer and Biblioshiny software. The bibliometric analysis of 363 documents identified the most impactful sources of publication, keywords, authors, and most cited documents on the topic of Fintech as a financial disruptor. As our analysis demonstrates the number of publications on the given topic increases, defining both the interest among academia and potential for future research.

Using annual panel data of 46 listed commercial banks in China from 2012 to 2021 and constructing a two-way fixed-effects model, this study empirically analyzes the competition and technology spillover effects of fintech on the profitability of commercial banks. The results show that (1) in the early stages of fintech development, the competition effect is larger than the technology spillover effect; thus, it is negatively correlated with commercial banks’ profitability. However, with the spread of innovative fintech, the technology spillover effects and commercial bank profitability will gradually improve. (2) The influence of fintech on the profitability of commercial banks differs. Compared to large commercial banks, fintech has more significant negative effects on small- and medium-sized commercial banks in the short run. However, the role of fintech for such banks will also grow in the future. The results of this study provide practical guidance for how commercial banks can respond to the fintech wave. To realize sustainable development of the banking industry, commercial banks should change their business philosophy and revenue model, vigorously improve their fintech innovation capability, differentiate their choice of fintech development routes, develop personalized customization with a focus on users, and ultimately realize digital transformation and upgrading.

The rise of fintech in the financial sector presents a transformative shift towards digitalization and sustainability, leveraging technologies like AI to minimize environmental footprint. Neobanks not only challenge traditional banking models but also offer innovative solutions that align with sustainable objectives. The purpose of this paper is to analyze the impact of neobanks on global sustainability, from economic, environmental, and social point of view. A comprehensive literature review of existing literature and current sustainable practices of neobanks was conducted. We have found that neobanks significantly positively contribute towards environmental sustainability with reduced paper use and logistics requirements of banking services. By offering more accessible and affordable banking services they importantly contribute towards higher financial inclusion, and with innovative products towards more competitive and innovative financial markets. AI-based tools they employ are increasing financial literacy and social inclusion. We also highlight concerns regarding electronic waste management, potential high energy consumption, required digital literacy and cybersecurity risks. We conclude that despite the mentioned risks, neobanks importantly contribute to global sustainability in many ways, and will even more in the future. Our findings can help neobanks shape sustainable practices and guide policymaking, as well as spread awareness of sustainable impact of banking services.

Previous studies have suggested that digitization of finance leads to growth in the economy in several middle- and high-income countries, but research in low- and lower-middle-income countries (LLMICs) remains limited. This research aimed to examine the trends, barriers, relationships, and prospects of finance digitization in LLMICs. This study used analytical and descriptive cross-sectional study designs. Sixty-six countries were purposively selected based on the available data on the Global Findex and the World Development Indicators databases. Descriptive analysis was used to identify the trends in the finance digitization indicators, correlation analysis was used to assess the nature of the association between finance digitization and the economy, and exponential smoothing was used to predict future outcomes in digital finance. The results indicated that the adoption and utilization of finance digitization increased in these countries, but the growth rates varied by region and income group. Low-income countries reported the highest rates of subscriptions to digital finance accounts and storing money in digital accounts, while lower-middle-income countries (LMICs) reported higher rates of inbound/outbound digital transactions, borrowings, and savings using digital channels. Sub-Saharan Africa reported the highest rates of digital finance account subscriptions, digital savings, and digital borrowings, while Europe and Central Asia reported the highest rates of in/out digital transactions. Barriers to digitization in these countries included poor access to the internet, high cost of digital finance products, and lack of a mobile phone, with low-income countries facing more challenges. The analysis revealed a negative significant relationship between finance digitization and Gross National Income growth and a positive significant correlation between finance digitization and other economic growth indicators (gross savings and Gross Domestic Product). Finance digitization was predicted to continue to rise in these countries for the next decade. The study recommended that policymakers should promote the adoption of digital finance and address the barriers and risks of finance digitization in LLMICs, as it had positive effects on economic growth.

Inflation is a crucial macroeconomic indicator which measures changes in the general level of prices of goods and services. In recent years, a series of successive events affected the inflation rates. To fight this increase in inflation, governments start to take different actions through their monetary and fiscal policies. In this research 10 independent parameters were used to see their effect on inflation rates. Some are traditional like GDP, Population, and exchange rate while others are some new technology related parameters like E-money payments transactions and number of Institutions offering payment services/instruments. The dependent parameter is the consumer price index (CPI). All parameters were taken in 8 years period (2013-2020). Supervised machine learning is used to run a robust regression model. The results show that technology advancement in payments is not a catalyst for price inflation if it is used properly and under regulations and control monetary policies. The results direct regulators to have a good understanding of the situation and take the right action in their policies of adopting fintech businesses.

FinTech has been in the focus of the discussion for quite some time. However, the market share of FinTech companies is still relatively small in compared to more traditional financial services. The purpose of this paper is to analyse the status quo, current developments and challenges ahead for the Latvian FinTech sector. We combine three analyses: the political and legal, the economic, the social and the technological environment (PEST) analysis, an analysis of the size and performance of FinTech companies during the last 10 years, and a survey among FinTech companies. We find that the current status of regulation is one of the main obstacles to FinTech development, because it does not sufficiently consider FinTech-specific aspects. Problems in attracting skilled workforce, and an environment that is not very supportive of new developments in finance are further challenges and might explain at least part of the growth and performance difficulties. A revision, modernization and harmonization of regulation is essential to create a level playing field for all market participants: FinTech companies, traditional financial service providers and those originally traditional players that are integrating FinTech solutions in their business model. Further efforts are also required to foster the Latvia’s attractiveness for skilled workforce. We hope that this study helps increase the visibility of Latvian FinTech and contributes to the development of the new Latvian FinTech strategy.

With the fintech industry growing at an unprecedented rate, it is critical to protect cybersecurity and ensure data privacy. The research presented here offers a thorough examination of the challenges faced by financial technology companies, highlighting the growing risks posed by malware, phishing, and network vulnerabilities. As essential components of a proactive defense plan, the report promotes strong cybersecurity measures like frequent security assessments, encryption, and stringent access controls. The findings highlight how important it is for fintech companies to give cybersecurity equal importance with open and honest data privacy policies in order to win over customers. In order to protect the industry from cybersecurity risks regulatory compliance, intrusion detection systems, and collaborative information sharing are considered essential components. The article advises businesses to include cybersecurity and data privacy into their core business operations and customer relations, highlighting the critical role these factors play in sustaining success in the rapidly evolving fintech industry.

Money launderers prefer to use financial services as the ideal medium to launder. The study aimed to provide an overview of the global AML/CFT regulations, application and how they should evolve in this dynamic environment. To gather more insight, a qualitative study was undertaken with relevant documents analysed. The main findings were: country implementation of the global AML/CFT regulations differed due to political and economic factors amongst others. While the various AML/CFT enforcements done by sampled countries were mainly cease and desist orders and monetary penalties which were publicized; and drawbacks of global AML/CFT regulations centered on application of these regulations and emerging trends. These include among other definitions of money laundering, reference to the three stage of money laundering, link between penalty and violations, technological innovations and regulations paradigm shift, cyber-attacks and data privacy. The study contributes to application and growing body of knowledge in that the advent of technology has resulted in better consumer experiences, new payment platforms, products, and services. However, these innovations have broadened emerging money laundering risks and risks in general to the financial system. Hence the need to conduct research based FATF Recommendations as risk is dynamic and not static.

This research explores the influence of nationality and financial literacy on satisfaction with neobank services among university students. Through a comparative analysis between German and international students, the study unveils that international students exhibit significantly higher satisfaction levels, suggesting that cultural differences and the requirement for international financial services play a crucial role Oishi et al., 1999. Although financial literacy was anticipated to have a strong impact, its effect on satisfaction did not reach statistical significance, indicating a nuanced relationship. This perhaps because the study sample of students partaking in the survey was mostly Graduate students in the field of Economics, Finance and Management. Demographic factors such as gender and age were found to be less influential compared to nationality and financial acumen Gelfand et al., 2011. These findings highlight the importance of tailored financial services and the potential of financial education in enhancing neobank satisfaction Gerrans et al., 2014. The study contributes to the understanding of consumer behavior in digital banking, offering insights for neobanks aiming to improve service adoption and customer loyalty within the university student demographic.

This paper explores the application of machine learning (ML) algorithms in predicting trends in the fixed bond market, where traditional analytical methods have proven inadequate. Focusing on various ML techniques such as supervised and unsupervised learning, neural networks, and deep learning, the study evaluates their effectiveness in forecasting market movements. It details a series of experiments in which different ML models are rigorously trained and tested against historical bond market data. The findings reveal that models employing time series analysis and advanced deep learning show marked potential in accurately predicting bond market trends. Additionally, the paper delves into the challenges and limitations inherent in these ML approaches, including data requirements and the risk of model overfitting. Finally, it proposes directions for future research, emphasizing the integration of ML into broader financial market analysis.