FUTURE OF FINANCE: THE IMPACT OF FINTECH ON FIRM’S PROFITABILITY

Abstract

Industries are focusing on innovation to ensure survival in this competitive world. Fintech, which has emerged as the result of such innovation, is a modification, enhancement, and automation offinancial services. Fintech is an emerging business sector that is on the road to eliminating traditional banking, which has been in operation for many years. • Since technology has evolved every business line in the world, our objective is to analyze the influence oftechnology on the profitability ofthe insurance sector. • TPL Corporation, which is the company of our interest, recently joined hands with a fintech company named Finja. The financial statements of TPL before and after this adoption of fintech have been compared in order to evaluate its effects on the profitability ofthe company. • The tools that provided assistance for the evaluation offinancial statements are the financial ratios. Various ratios insurance industry-related in particular are calculated to have the best image of the impact of Fintech on the performance of the company. • Unfortunately, the company adopted Fintech during the era ofCovid- 19. Form the result findings; it is concluded that the company adopted Fintech in such times in which every industry was on the verge ofcollapse. Working conditions were so bad that their after-effects can be observed to the present date. • It is predicted that the positive impact of Fintech on the profitability can be observed in the coming 2-3 years.