Fintech

History of Internet has shown us how data and information can be disseminated through its revolutionized window by just a few clicks. Internet has planted the seeds of knowledge everywhere through efficiency and speed. It also led to the birth of Information technology which brought the connection and interaction among humans to a whole new experience through the evolution of social media such as facebook and whatsapp but if we think that the utilization of internet is only confine to IT sector then we will be proved wrong by the years to come because internet will dominates the ways we live and work as Internet of Thing will be the common language in the years to come. For example, the new concept of how capital and fund can be raised for investment and business purposes through online platform has given the conventional banks a good run for their money.

Fintech is the common terminology used by the business community to describe how internet can be revolutionary on how the retail loan can be obtained through crowdfunding and it will definitely challenge the financial position of conventional banking system in the future significantly. As fintech is subject to less complex capital rule structure, it offers a better solution for SMEs in malaysia to raise capital for business expansion and RM94 billion was raised through the conventional banking by SMEs according to SME corp Malaysia's 2014 annual report. It is reported that SMEs will contribute 41% to the country's gross domestic product by 2020 compared to 32% in 2012. How does this web-based financial technology able to improve the efficiency of the conventional capital market and becomes the dominant force in the competitive financial market depends on how prompt the traditional financial players readjust and redevelop its strategies and policies to embrace the challenges brought along by the new player. The spate of recent layoffs through VSS and MSS by domestic banks likes CIMB, RHB and HongLeong banks suggested that the financial sector is not just facing the headwind from the falling of crude oil price and the integration of ASEAN but also the threats from the emergence of financial technology.

The future is unpredictable but internet will definately become part and parcel of our live during the age of mastery as described by professor Michio Kaku.