Financial digitization and Fintechs development in BRICS nations: A cross-country analysis

Abstract

The rapid pace at which technology is evolving and the changing dynamics of the business processes are emerging as the key focus areas of research in the “banking and finance” space. In emerging markets (e.g., Brazil, Russia, India, China and South Africa (BRICS)), banking and technology have undertaken transformational digitisation, as they relate to banking and the growth of financial technologies (FinTech), plays a major role in bringing about improved access to finance for all individuals, accounting for better efficiency in operations and for the improvement of oversight through regulation.

This paper seeks to evaluate digital programs that have been developed within the context of the banking sector and the different stages of the growth of FinTech within the BRICS. The primary emphasis will be on payments using various forms of payment methods, foreign transactions, rules and regulations governing these transactions based on the applicable statutory authorities. The article also seeks to analyze various regulations on FinTech, different stages of FinTech development, key FinTech players and the various applications of FinTech across the five BRICS countries. The paper will explore how advanced technologies such as chatbots and fraud-deterrent systems are helping to improve digital banking ecosystems. A qualitative comparative research methodology, consisting of both secondary data and case-based research, have been utilized by the researchers to develop patterns of activity and regulatory gaps that exist between the five BRICS countries and to identify future challenges that will arise. Findings of this study indicate that BRICS countries have different levels of technological and regulatory maturity’ however, they are all in agreement that they are all placing a high priority on digital payments, cybersecurity and consumer protection. This paper adds to the current body of literature by providing a comparative, cross-country perspective on the evolution of digital banking and FinTech in an emerging market and therefore provides caractistic to this segment of the economy.