LITERATURE REVIEW

Contributed Technology in FinTech

Technology has always been part of the financial world to some degree, whether it
was the advent of credit cards in the 1950s or ATMs in the ensuing decades, electronic
trading floors, personal finance applications and high-frequency trading. Although the goods
and services supplied by the sector are financial in nature, most of the processes and tools
come from the technology industry. The classification of the FinTech industry is predicated
on defining the term FinTech. Fintech refers to any organization that uses technology to
develop or automate financial services and processes and is a blend of the words' finance' and'
technology'. The idea is a large and rapidly growing sector serving both customers and
businesses. Fintech has wide applications, from mobile banking and insurance to
cryptocurrency and investing apps. Fintech isn't a new field, it's just one that has grown very
rapidly.

There are a few technologies that been contributed to Fintech, which is Artificial
Intelligent (AI) and Machine Learning (ML), Big Data and Data Analytic, Robotic Process
Automation (RPA), and Blockchain. Artificial Intelligence (AI) and Machine Learning (ML)
are some of Fintech's most commonly applied innovations, providing the ability to play an
even greater role as advances continue in the financial sector. Some of the AI and ML
Fintech applications include, among others, credit scoring, fraud detection, regulatory
enforcement, and wealth management. For fintech firms, data from clients and markets is of
high importance. Information regarding customer preferences, purchasing patterns, and
investment behavior can be collected across broad datasets and used to create predictive
analytics. Predictive analytics refers to predicting how users are going to use past data and a
statistical method to conduct themselves. In the formulation of marketing campaigns and
fraud detection techniques, the data collected also helps.
The use of automated tools for processing tasks refers to Robotic Process Automation.
RPA is software for business processing that enables automated processing or a "robot" to
control actions and tasks carried out within electronic systems by humans. RPA software is
designed to decrease the burden of time-consuming, repetitive activities. By providing real-
time customer solutions and leveraging the advantages of using robotics in their daily
processes, banks and financial institutions will improve their productivity and efficiency.
Because of the amount of preparation and improvements required to adapt to a new
framework, the implementation of RPA software can be both time-consuming and costly.
Blockchain is a pioneer in digital business transactions that cannot be tampered with
or changed. It is intended to document not only financial operations with a fixed value, but all
other activities. This technology allows for digital data to be distributed and copied across
various nodes. The hash connections will be altered by any wrong change or alteration, and it
is easy to detect a malfunction. This is because of the difficult and complex technology
behind it.