A review of literature directions regarding the impact of fintech firms on the banking industry

Haitham Mohamed Elsaid

Qualitative Research in Financial Markets, 2021, vol. 15, issue 5, 693-711

Abstract: Purpose - This paper aims to provide a review of literature directions regarding the potential impact of fintech operators on the financial services market globally. This paper reviews the literature to identify possible benefits or challenges that fintech firms can have for the traditional banking system. Design/methodology/approach - This paper is based on a review of published research papers related to fintech and digital finance. The Scopus database, SSRN database and google scholar were used to find relevant research papers. The final sample included impactful papers about the effect of fintech activities on the banking and financial services industry. Findings - The current paper indicated that while fintech firms would take some market share away from banks, it is not expected that fintech firms would substitute banks. However, banks are required to accelerate their adoption of innovations and advanced technology to compete with fintech firms. It is also proposed that strategic partnerships and cooperation could happen between banks and fintech companies in a way that benefits both sides. Originality/value - The present paper adds to the understanding of the effect of the fintech firms’ growth on the banking industry in light of the emerging opportunities and threats for the financial sector. The paper also provides guidance for fruitful research on the impact of fintech activities on social and economic welfare in the future.

Keywords: Crowdfunding; Peer-to-peer lending; Fintech; COVID-19 pandemic; Digital payment; Banking competition; Bank performance; Strategic partnerships (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:qrfmpp:qrfm-10-2020-0197

DOI: 10.1108/QRFM-10-2020-0197

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