BigTech, FinTech, and banks: A tangle or unity?

Sitara Karim and Brian Lucey

Finance Research Letters, 2024, vol. 64, issue C

Abstract: We examined the dual impact of BigTech and FinTech financing on traditional banking metrics like personal loans, credit risk, and bank performance. Through baseline regressions, alternative measures, endogeneity checks, and sub-sample analysis, our findings reveal an inverse relationship between BigTech and FinTech financing with personal loans and credit risk, suggesting severe challenges to traditional banking practices. Conversely, a positive correlation with bank performance indicates that while BigTech and FinTech disrupt certain aspects of banking, they also present opportunities for adaptation to blockchain-based financing mechanisms. Further evidence also confirmed these findings. The study informs various policymakers, stakeholder, and academic scholars.

Keywords: BigTech; Credit Risk; FinTech; Personal loans; Performance (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324005208

DOI: 10.1016/j.frl.2024.105490

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