ABSTRACT
In this chapter, the authors introduce fintech and smart banking. They elaborates on the application of bitcoin and blockchain technology, including its benefits and some of the associated risks. The authors discuss in detail two financial business models: crowdsourcing and P2P lending. The global financial crisis of 2008, combined with greater access to information technology and wider use of mobile devices, allowed a new generation of firms to deliver financial services. Fintech smartphone applications provide a solution for consumers who have low or irregular incomes and are therefore not included in the customer base of traditional banks. Citigroup was the first to embrace digital banking in Tokyo in 2010. Traditionally, lending and deposit services were core to commercial banking at both retail and wholesale levels. In P2P lending, it is possible to borrow smaller amounts of money and reach previously unbanked customers (financial inclusion).
