Abstract
The FinTech revolution has changed the financial markets which are now facing a point of no return. New products, services and processes are being offered by new entrants, be they FinTech, BigTech or digital native financial intermediaries. A competitive power that mainly derives from the new business models adopted for the provision of financial services is forcing incumbent banks to rethink their approach to the market and to customers. BigTech and FinTech represent worrying competitors, but also an opportunity for partnerships, especially for smaller banks. The future development of banking business models will also be shaped by the regulatory steps that will be taken by the authorities. These should aim to level the playing field to ensure financial stability and consumer protection.
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Notes
- 1.
It is a theme which raises many delicate questions relating to data protection, privacy and appropriate use of information by big data “managers” including in relation to fully competitive profiles (European Commission 2017).
- 2.
Omarova (2018) has highlighted that “Today, the same rhetoric of financial innovation and consumer choice that brought us the financial crisis of 2008 returns to center stage in the policy debate over fintech (…) Once again, new technologies promise to make the system more efficient, resilient, and democratic; to expand consumer choices; and to give low-income Americans access to financial services”.
- 3.
The issue of the sustainability of the business model (in the short and long term) constitutes a key issue in European vigilance which incorporated it as one of its Supervisory Review and Evaluation Process analysis components in 2016 (ECB 2018).
References
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ECB (European Central Bank). (2018, September). SSM thematic review on profitability and business models. Report on the outcome of the assessment.
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Omarova, S. T. (2018, September 18). New Tech V. New Deal: Fintech as a systemic phenomenon. Written Testimony of Saule T. Omarova, Professor of Law Cornell University, Before the United States Senate—Committee on Banking, Housing, and Urban Affairs, Fintech: Examining Digitization, Data, and Technology.
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Tanda, A., Schena, CM. (2019). An Attempt at Synthesis: Financial Market Digitalisation Scenarios, Opportunities and Challenges. In: FinTech, BigTech and Banks. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-030-22426-4_6
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DOI: https://doi.org/10.1007/978-3-030-22426-4_6
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