FinTech and Banks
The banking system has recently faced several challenges not only due to financial crises but also due to technological developments and innovation.
FinTech and Banks
Project description
Innovations in information and communication technologies have enabled financial systems to evolve towards the digitisation of transactions. However, innovations in financial technology (FinTech) not only have increased global networks but have also challenged existing financial systems. FinTech firms are designed to compete with mainstream banks, as they can utilise innovative technology to perform tasks and provide financial services, including lending, payments, and investments, more efficiently than banks, while consumer behaviour is shifting from face-to-face financial services to digitalised financial services. These changes have forced banks to build more operational channels and strengthen their risk management to survive under the challenging environment.
The project aims to
- Study the determinants of bank performance
- Investigate the effect of the increased competition due to the entry of new FinTech rivals on mainstream banks’ profitability.
Key research outputs
- Katsiampa, P., McGuinness, P., Serbera, J.P., and Zhao, K. The impact of FinTech on bank performance in China. (Working paper)