provided by the financial services sector. Or FinTech stands for financial technology,
which affects not only the financial sector itself, but also all industries connected with
it.
Recently in the world of FinTech, there were such subcategories as: management
of accounts and assets; lending; processing of payments, financial assets and securities;
mobile payments and money transfer services; digital identity protection and cyber
security; education and small business financing; robotic consultants; distributed
registers and blockchain; neobanking; insurance technologies and others. There are
also more general categories, for example cloud technologies, Internet of things,
artificial intelligence, machine learning, biometrics and others, which are also reflected
in the activities of FinTech-companies. Due to this FinTech's financial and technology
companies, which are widely using the latest digital Internet technologies, changing
conditions of competition, blurring the boundaries established among the members of
the classical financial services markets [8].
New digital financial technologies will be able to replace the bank branches and
the way the banks communicate with customers. For example, in China 96% of sales
in e-commerce systems occur without the participation of banks. The fact that FinTech-
companies (start-ups) today are one of the most promising types of financial business
is also evidenced by the following indicators. According to the US consulting firm
Accenture, global investment in FinTech has grown more than 12 times in six years,
from US$ 930-million in 2008 to US$ 12-billion in 2014, and has distributed across a
wide range of financial services [9; 10; 11]. The total investment in the development
of financial technology companies (FinTech-startups) amounted to about US$ 50-
billion in 2015. It should be noted that the largest investments in the development of
this industry take place in the US, Europe and Asia [12, 13; 14].
In most financial institutions around the world the need to have a physical
infrastructure for the financial services market is gradually disappearing. According to
the research of Deutsche Bank, during 2006-2011 in Germany, 6.6% of banking
institutions were shut down, and according to the forecast by 2030, 44 million
individuals in Germany will use online banking, against 27 million people in 2010.
Such a trend is gaining momentum all over the world. In particular, two German
companies – FinTech Group and Rocket Internet will in the near future collaborate to
establish a pan-European digital bank and provide digital banking services throughout
Europe [15; 16; 17].
In order to survive, traditional financial institutions, in our opinion, will need to
constantly digitize their own services, widely use mobile applications, as well as cloud
technologies. Today, the main goal of these institutions is to be available for
widespread use of electronic money operations around the clock from anywhere in the
world. These banking institutions are gradually emerging in some EU countries. The
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