Financial technologies or shortened fintech is a method to avoid traditional ways of delivering financial services. It makes financial activities more accessible for the public. For example, using smartphones for mobile banking, investing and cryptocurrency.

Year by year, fintech is becoming popular and spreading many areas. Eurasia Diary took the opinions of Salvatore Moccia for better understanding of what is fintech?

Dr. Salvatore Moccia is Professor of Strategic Management at the International University UNIR – La Rioja, Spain. He is also the founder and general manager of “The FinTech Conference”, and the founder of the “DivinConference – Diversity and Innovation – Conference.”

Dr. Salvatore Moccia explained how technologies are used in trading, transport and banking.

"Some countries are using technologies in several activities. For example, China has set up Alibaba."

"When, we analyze fintech platforms, for an example blockchain platform. The good news is it is not much expansive. The problem is that we don't know about it."

He explained that fintech is just technologies applied to financial sector. Amazon and Uber are also using e-technologies but not exactly fintech companies.

"Facebook is planning to make its own cryptocurrency Libra. It is like these companies are using fintech for developing other instances," S. Moccia differentiated e-technologies with financial technologies.

Dr. Moccia clarified that e-technologies use big data. "For example, if you ask money, they are researching your credit history on the internet. Apart from this, your online activities can be researched. For example, which books you have bought and etc. They are collecting data and making your profile."

The expert said that these profiles can be used for advertisements. The companies can advertise products for you based on your interest sphere. Your interest sphere is determined by your activities on the internet.

Such kind of operation can break privacy codes. S. Moccia answered the question of how big data affects the privacy code.

"With smartphones privacy is impossible. Maybe, you have observed that many businessmen and mafias are using old phones. In Europe, there is strict regulation on this. But for example, on google, they know all the information about you."

"On the other hand it is good, we can control crime and other things. If you have nothing to hide, so it is no problem. But there are also moral issues."

Technologies face cybercrimes. "If someone can access your smartphones or computers, they can steal your account," fintech expert stressed.

"There are also a lot of problems. For example, cryptocurrency, it is a problem to regulate it." S. Moccia also noted that electricity can delay your activities online.

"We can't imagine the world without electricity. But your accounts are not based on electricity what if it cut, it will not disappear. There is no alternative for this."

While having many problems, in general, technologies makes our life easy. Salvatore Moccia also touched upon advantages of fintech.

"Let's take positive elements of fintech. It is very useful in terms of business perspectives. Having branches make a lot of problems like renting areas. But with smartphones, you are downloading an application and getting possibilities to access banks without moving branches. If you want to start a business and you have to ask money, you may do this activity with this kind of apps. It doesn't mean people will lose jobs, just transferred to other places."

He also explained that fintech can help you even in the shopping.

"When I was in China in the market, I paid the bill with paper money and it took some time to exchange it. But with fintech it is quite easier. That is also another comfort for the public."

Salvatore Moccia concluded his speech by explaining that life is changing, many companies start to use artificial intelligence for operating comfortable and quickly and in this perspective fintech is offering us a lot.

Ulvi Ahmedli

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• Finance
• Technology
• Financial Technologies