Financial technologies and traditional banking: new conditions of financial market with respect to competition and risk

Małgorzata Pawłowska

doi:10.26354/bb.2.4.93.2023

Published : 2024-02-19

Vol. 93 No. 4 (2023)

Financial technologies and traditional banking: new conditions of financial market with respect to competition and risk

Małgorzata Pawłowska

https://orcid.org/0000-0002-2715-5446

DOI: https://doi.org/10.26354/bb.2.4.93.2023

Abstract

The digital revolution brought new factors that influenced the traditional banking market. Banks were forced to compete not only with other players from the banking sector but also with FinTech companies. Therefore, the aim of this paper is to investigate the impact of digital financial technology (FinTech) on traditional banking and finally on banking performance in EU, at the new conditions of competition on the financial market. This paper consists of a qualitative and quantitative assessment. In the theoretical part this paper confirms the big role of FinTech companies in shaping new financial market. Finally, the quantitative investigation confirms that new technology had an impact on traditional bank performance. Furthermore, new players have changed the conditions of competition in the financial market.

Keywords:

COVID, FinTech, competition, traditional banking

JEL Codes

G21, F36, G2, G34

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Pawłowska, M. (2024). Financial technologies and traditional banking: new conditions of financial market with respect to competition and risk. Safe Bank, 93(4), 31–49. https://doi.org/10.26354/bb.2.4.93.2023

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