Fintech and the future of finance
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Date
2025
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NHCE
Abstract
FinTech's simplified financial transactions help consumers and companies both by making them easier and less expensive to use. This category could also include companies and services that employ encrypted technology, big data, and artificial intelligence to allow secure internal network transactions. Financial technology basically makes transactions simpler by eliminating unnecessary processes nobody needs. One example is the ease of mobile payment methods like Google Pay or Paytm, which let you transfer funds to another person's bank account whenever you wish, day or night. But the receiver would need to go to the bank to deposit the money if you preferred to pay with a check or cash. This study aims mostly to explore how financial institutions' adoption of financial technology (FinTech) has greatly affected the banking industry. Using the measurement of the CAMEL assessing tool, this study investigates the link between FinTech and financial stability as well as text-mining analysis on the financial statements of 48 European corporate banks from 2015 to 2024 to ascertain the extent of FinTech each financial institution possesses. The study shows that bank FinTech is positively associated with a number of variables including capital sufficient, asset quality, management performance, potential profitability, and liquidity. Banks as a whole might profit from the use of bank FinTech. This study produces the very first bank FinTech index for European commercial banks by means of text-mining techniques. Using the CAMEL framework, this index is created.