Financial impact of the Fintech revolution on the financial and banking market of Panamá

Abstract

In this new era, financial technologies, now known globally as Fintech, leverage countless tools in the digital realm to achieve the modern goal of modernizing, automating, and identifying opportunities for improvement in the traditional processes offered by financial service entities. The remarkable acceptance, adaptation, and evolution of financial technologies reveals how technological resources have taken on a disruptive character. This can be exemplified by the shift from telegraphs in the early days of financial services to the digital platforms of today, where speed and personalization are paramount. In the context of the Republic of Panama, a complete transformation of the financial sector has been observed in recent years, strengthening inclusion, improving operational efficiency, and resulting in increased competitiveness for various financial institutions in the market. In light of the above, it is crucial to emphasize that Fintech is playing a vital role by reducing transaction costs and simplifying existing traditional processes. However, this evolution comes with various challenges in areas such as financial education, cybersecurity, and regulation.Following the above, it is imperative to point out that this article is an excerpt of some key aspects that, in the author's opinion, Panama should consider strengthening within its financial institutions and Fintech companies to enhance and increase the country's current position as a financial center in Latin America.