A Flourishing Fintech Ecosystem: Conceptualization and Governing Issues in Malaysia

Transforming business transactions from the old "bricks and mortar" physical transaction to "click and order" via digital devices gave birth to financial technology or Fintech. Fintech has arguably democratized financial services, allowing non-traditional firms to enter the space. Fintech refers to digital technologies that integrate various forms of technology, including Blockchain, Robo-advisors, Crowdfunding, Big Data, Peer-to-peer (P2P) lending and intelligent investment consulting in the financial sector. Nonetheless, the Fintech research topic in developing countries like Malaysia is still at the nascent stage. The previous literature has recognized the Fintech evolvement, features, and effect but has not yet provided a comprehensive conceptualization and manifestation. The governing issues of Fintech are also still worth further investigation. Based on the fintech literature review, this paper explores the Fintech conceptualization and its governing issues in-depth. The study will contribute to understanding Fintech, its manifestation, and how Fintech evolves. This concept paper also shed some light on Fintech research areas by identifying the governing issues surrounding Fintech implementation. From the practical perspective, the contribution is a recommendation on how the Fintech application could be utilized optimally by the Fintech companies that would positively impact the Malaysia ecosystem and contribute to the national agenda.