Financial Technology (FinTech): A Strategic Analysis of Global and Egyptian Markets

Abstract

This paper provides a strategic analysis of financial technology (FinTech) in global markets and in Egypt. It defines FinTech as a structural transformation of the financial industry and traces its development through three eras, from the infrastructure era of the telegraph to the current era of digital disruption. The industry is examined with PESTLE, Porter’s Five Forces and TOWS analyses, and its key components, service types, enabling technologies (artificial intelligence, big data, blockchain, cloud computing, open banking and APIs, mobile technology, cybersecurity and RegTech) and business models are reviewed with international and Egyptian examples, including the Central Bank of Egypt’s Financial Inclusion Strategy (2022–2025). The paper then discusses the advantages of FinTech, investment trends, its main risks and challenges, the regulatory and legal framework governing it, and its impact on traditional banking. It concludes that FinTech success depends on strategic alignment between technology, business models and regulation, and recommends investing in data and AI capabilities, adopting platform-based business models, promoting financial inclusion, strengthening cybersecurity and digital trust, using RegTech for compliance, building partnerships between banks and FinTech firms, keeping cost structures scalable, and diversifying revenue streams.