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Economic and Technical Determinants of Fintech

Updated: Apr 21, 2021

This topic contains

Economical determinants of Fintech

  1. Leverage

  2. Adequate liquidity

  3. Maturity and the time value of money

Technical determinants of Fintech

  1. Authority of government

  2. Cybersecurity

  3. Capital Markets and Infrastructure

  4. Volatile and System Operations

Finance and technology are mushrooming with leaps and bounds, and it is significant to understand how everything works and moves forward. The economy needs a boost, and it is significant to realize how we can use technology in our daily use and make the best out of it. From trading to an advisory, every field is using technology and getting work along with the same. We need to realize how to stay in trend and how we can move ahead. If we look at the technological and financial predictors that inspire businesses and entrepreneurs to be doing something special, they set up ventures in the same manner.

We live in a techno-savvy world wherein all-of-us need to realize how innovation ad digitalization can get embedded into something new and unique.

It got observed that several countries are voluntarily participating in fintech revolutions and trying to bring a significant change in the world. If we look at technological and economic predictors that are enticing for a businessman to be doing something unique, they set up projects in the same way.

With the outgrowing technology, we see that the servers, various subscriptions, new Market segments observe a sense of rejuvenation.

The exact emergence of the Fintech market also creates a sense of sensitivity towards theft which can get caused to a bank.

With this, we need to see how cybersecurity is holding important for everyone because at such a phase where we cannot risk it up. We regularly need new frameworks and updates to make sure that the risk gets associated with all the Fin-tech gets reduced to some extent.

These determinants have been increasing. Therefore, we see that Regtech, Insurtech, and Suptech came into existence. Lots of ideations and inventions came up the way providing a proper-way for the Fintech services to come under being.

If we pay attention to the chain, we can see all the considerations from having the public experience to establishing a comprehensive data analysis framework for data protection micropayments and financial reporting.

File sharing and peer-to-peer collaboration have become simple. The supply factors need to be taken into consideration so that we able to see how transactions have eased the way for payments to create a pavement.

The next factor to remember is demand, as continuing technological advances are creating a more user-friendly experience, but as millennials and Gen-Z become more involved, they are becoming more favorable to fintech as an institution.

The Economical Factors

1. Leverage- If we get into trading or any sort-of equity or talk about pips, we know that the higher the leverage, the higher are all sort of market risks.

2. Adequate liquidity- proper liquidity in the business determines the characteristics of the assets, and we can get to know the lows and highs of the existing market.

3. Maturity and the time value of money- extended or a rolled over loan causes a problem. With the highs and lows in the market, it becomes difficult to keep track and get a proper maturity out of the current value of money we own.

The Technical Factors

1. Authority of government

Government and legalities are essential since a large amount of data storage is existent with the government. A direct interruption may cause a blunder, Therefore, advised to check the cybersecurity law, the data stores that are with the government, and everything else.

2. Cybersecurity

Ethical hacking is prevalent in today’s era, along with expanding economy with technology we see criminals and data hacks happening over a major basis.

If you check the money heist over Netflix, you’ll get an understanding of how software plays an essential part in hacking wealth. Even while we’re using blockchain, it is hard for everybody to build a data trail, and the technology team has to keep a watch on the program’s urgent vulnerabilities to avoid any large breach that could render the business bankruptcy.

3. Capital Markets and Infrastructure

We see that businesses are more vulnerable since with maximum profits comes the maximum risk associated with it. In any website, if there is a monolithic structure they need to move towards the microservices to create a small impact over the whole market infrastructure.

The firm-related risks can destroy client relations, and fintech companies would be at a loss.

4. Volatile and System Operations

Any liquidity problem can loop in and impair the whole functioning of any financial system resulting in improper credits. A company’s branding is also dependent upon the amount of capture it has. If the company has a monopoly, it becomes important to keep the economy safe enough to progress with milestones.


Make sure to create an effective and efficient structure while developing the economic system of your company. Create transparency and get proper decentralization so that lending and data processing becomes easy. Convenience is a pivotal factor, therefore, recognize and get your mitigation plan as well. We are growing with cloud, AI, and whatnot, so with the proper demand and supply, you have a consistent Fintech.

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