[NEOBHÁJENO] An Investigation on the Impact of Financial Technology in the Banking Sector

Abstract

Advancements in technology and regulatory interventions have given rise to novel players named fintechs that fundamentally disrupt the traditional banking sector. However, academics stress that current empirical evidence regarding their impact on the market structures is scarce. Consequently, this undergraduate dissertation clarifies the bank-fintech competitive dynamics, examines attributes of their cooperation, and explores value creation motives and opportunism. Awareness of the current bank-fintech landscape supports all stakeholders in shaping their strategies on how to harness the opportunities as well as mitigate the associated risks. This research employs convenience and snowball sampling. The data is obtained via close- ended multiple-choice questionnaires and analysed using measures of frequency and non- parametric tests. The findings suggest that while coopetition is the most common bank-fintech competitive dynamic, banks either cooperate or compete with payment fintechs; banks cooperate with fintechs through strategic alliances and for product innovation; banks cooperate with payment fintechs with the motive of individual value creation and are more likely to act opportunistically.