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

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 sy...

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Bibliographic Details
Published in:Qualitative research in financial markets 2023-11, Vol.15 (5), p.693-711
Main Author: Elsaid, Haitham Mohamed
Format: Article
Language:English
Subjects:
Bank technology
Banking industry
Big Data
Competitive advantage
Consumers
Cooperation
Crowdfunding
Customer services
Disruptive innovation
Financial institutions
Financial services
Keywords
Literature reviews
Securities markets
Startups
Technological change
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Summary: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.
ISSN:1755-4179
1755-4179
1755-4187
DOI:10.1108/QRFM-10-2020-0197