The Digital Transformation and Disruption in Business Models of the Banks under the Impact of FinTech and BigTech

Oona Voican ()
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Oona Voican: The Bucharest University of Economic Studies, Romania

Database Systems Journal, 2020, vol. 11, issue 1, 117-127

Abstract: This article examines the impact of FinTech and BigTech on the business models of banks. The article notes the explosive development of artificial intelligence, machine learning, and big data methods in the financial-banking field in the last 10 years, which has led to profound changes aimed at increasing the efficiency and profitability of businesses. The article identifies five areas where FinTech and BigTech can provide improvements in business models for banks: introducing specialized platforms, covering neglected customer segments, improving customer selection, reducing the operating costs of banks, and optimizing the business processes of banks. The article concludes that applying concepts from artificial intelligence, together with the continuous increase of the volume, complexity, and variety of data that banks collect, store, and process, has led to the transformation of business models in the banking sector.

Keywords: Artificial intelligence; BigTech; Business models; Digital transformation; FinTech (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:aes:dbjour:v:11:y:2020:i:1:p:117-127

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