Technology has consistently proven to be a powerful tool for humanity. Across all industries, technology has improved the speed and accuracy of manufacturing and delivering services to end users. This essay focuses on digitalization in the financial sector, the overall role of financial markets within economies and how Fintech has played a catalytic role in the evolution of financial markets, while also examining some negative aspects. Digitalisation has enabled a real-time connection of everyone working in the financial sector. Evolving from traditional banking methods, new savings and investment vehicles have integrated the financial market globally and made the allocation and investment of funds a very rapid process. Technological advances serve as a stimulator for this mechanism. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Financial markets play an ever-increasing and crucial role in our economies, greatly facilitated by the ease of use of these technologies. In its simplest definition, financial markets are markets for the allocation of funds from savers to investors. The financial system plays a key role in an economy by encouraging saving and facilitating economic growth, through efficient and effective transfer of funds. The payment function, matching of lenders and borrowers, risk management and management of household financial affairs has made the financial system a backbone to integrate the economy by fulfilling and fulfilling the financial requirements of the people. Financial technology facilitates these, supported by fast and efficient processes. This has led to rapid interconnectivity of most financial markets spread across the world. For example, a retail investor located in, say, India, can invest in real time on the Nasdaq, with a couple of clicks. Technologies used and applied in the financial services industry, primarily used by financial institutions themselves in the backend of their businesses, are more commonly referred to as Fintech. Fintech represents technologies that are disrupting traditional financial services, including mobile payments, money transfers, lending, fundraising and wealth management. The secure place of Fintech in the financial system can be perceived from the benefits it has brought to the financial markets: Personalization of financial services: It offers personalized services based on consumer preferences. Dynamic customization: An example of this can be seen in the case of insurance policies, where there is inherent moral risk from the policyholder's perspective. In this case, smart contracts are used to adjust insurance rates based on the behavior of the insured. By providing tailored services to customers, the overall experience they derive from such services is improved. Transparency: According to Callum Sinclair, chief technology officer, "Millennials love interacting with social platforms, but when it comes to their money, there is still a trust deficit." Nowadays everyone is aware of the their rights as consumers and demand a fair and transparent financial system. Tech aggregates products, services and data that provide information on product choices, coverage and prices and subsequently increases transparency across the entire system of the financial system can be difficult for end usersartificial intelligence (AI) and Big Data analytics, Fintech assists consumers in a cost-effective way. Speed ​​and flexibility: High-volume trading was made possible thanks to computers that instantly buy and sell securities. Because of this, the length of time the owner holds the securities has been reduced to a mere blink of an eye. This impressive feat has been achieved by Fintech that combines speed and flexibility in building consumer-centric services. Fintech has had a clear impact on the financial services sector, but we know that efficiency in one sector of the economy will ultimately contribute to the development of the economy and society. One of the major ways Fintech has impacted the economy is in the form of financial inclusion. When people in developing countries gain access to financial services through Fintech, they will have the opportunity to expand activities such as e-commerce and e-learning, which are currently hindered by limited access to payment services . In this way, Fintech should contribute to economic development. As Shepard Fairey says, “There is good and bad in every arena.” Although Fintech has had a strong impact on the financial and economic sector, it has inevitable drawbacks. Lack of Security: Businesses are facing serious cybersecurity issues, including threats that have the potential to escalate into massive breaches affecting millions of customers around the world. As reported by Equifax (a consumer intelligence agency), in July 2018, over 143 million accounts were compromised in a massive data breach, in which hackers stole names, Social Security numbers, phone numbers and other information vital assets of account holders. By its nature, FinTech involves communication between a wide range of connected devices using unique software, often with varying levels of security. Hackers can take advantage of this lack of uniformity and gain illegal access to personal information stored across the entire network and jeopardize the personal safety of unsuspecting people. Security breaches associated with Fintech are one of the main reasons why investors and users of financial markets need to be discouraged. from the use of this technology. However, as the industry continues to evolve, cybersecurity specialists are revisiting conventional security models and reshaping fintech to make its security foolproof and ensure total data privacy, thereby gaining consumer trust and catalyzing the adoption of fintech. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay In conclusion, I believe that the vast number of positive factors of Fintech and the major improvements it can bring to the financial system and economies in general greatly outweigh any disadvantages associated with It. An apt quote from Steve Jobs that “Innovation is the ability to see change as an opportunity, not a threat” fits this topic perfectly. References Bernard Marr, 2017. The complete beginner's guide to financial technology that everyone can understand, sl: Forbes. Catherine McGuinness ; Paul Merrey, 2017. Microsoft Edge. [Online] Available at: https://assets.kpmg/content/dam/kpmg/uk/pdf/2017/10/value-of-fintech.pdfDarskuviene, V., 2010. Financial Markets, sl: sn Elsinger , H., ndGarber, J., 2017. Equifax is plummeting after announcing massive security breach. sl:Markets Insider.Helmut, E. et al., 2018. Digitalisation in financial services and household finance:).