Do the new FinTech companies have a better business model

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Question - FinTech (financial technology) firms are challenging the traditional business model of banking. They can be as simple as mobile apps without brick-and-mortar branches or as revolutionary as entirely new currencies, known as "cryptocurrencies." Are these technologies the future? Or like mortgage-backed securities in 2000-2006, are they yet another example of risky products that are luring customers and investors into an unsustainable financial bubble? Many of these products promise to pay higher interest rates than traditional banks. How can they afford to do that? Have banks been paying too little? Do the new FinTech companies have a better business model that allows them to pay more? Or are they taking unnecessary risks to make their products more attractive? Feel free to research some of these companies online to use as examples to support your argument.

Reference no: EM132864364

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