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Thematic Analysis of Financial Technology (Fintech) Influence on the Banking Industry

Author

Listed:
  • Parminder Varma

    (Chitkara Business School, Chitkara University, Rajpura 140401, Punjab, India)

  • Shivinder Nijjer

    (Chitkara Business School, Chitkara University, Rajpura 140401, Punjab, India)

  • Kiran Sood

    (Chitkara Business School, Chitkara University, Rajpura 140401, Punjab, India)

  • Simon Grima

    (Department of Insurance, Faculty of Economics Management and Accountancy, University of Malta, MSD 2080 Msida, Malta
    Faculty of Business, Management and Economics, University of Latvia, LV-1586 Riga, Latvia)

  • Ramona Rupeika-Apoga

    (Faculty of Business, Management and Economics, University of Latvia, LV-1586 Riga, Latvia)

Abstract

The synthesis of technology and finance is known as financial technology (Fintech), which brings together two of the biggest industries in harmony. Fintech disruption is a deviation from the norm, resulting in a significant shift in banking services and, as a result, risk. This article aims to investigate how Fintech has influenced recent changes in the banking industry and upcoming challenges, with a particular emphasis on blockchain technology. We perform a comprehensive thematic analysis of recent studies on Fintech in the banking industry. We found that Fintech has enormous potential to grow and impact the banking industry and the entire world. The banking industry could benefit from combining emerging technologies such as blockchain, AI, machine learning, or other decision-making layers. However, with the benefits come drawbacks, such as increased reliance on technology, high costs, increased job losses, security risks related to data and fraud, and so on. The use of emerging technology and collaboration between Fintech firms and banks can improve system-wide financial stability while minimising the negative externalities of disruption and competition. These findings can help regulators, policymakers, academics, and practitioners understand the opportunities and challenges of emerging technologies in the banking industry.

Suggested Citation

  • Parminder Varma & Shivinder Nijjer & Kiran Sood & Simon Grima & Ramona Rupeika-Apoga, 2022. "Thematic Analysis of Financial Technology (Fintech) Influence on the Banking Industry," Risks, MDPI, vol. 10(10), pages 1-17, September.
    • Handle: RePEc:gam:jrisks:v:10:y:2022:i:10:p:186-:d:920186
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    References listed on IDEAS

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    1. Ramona Rupeika-Apoga & Eleftherios I. Thalassinos, 2020. "Ideas for a Regulatory Definition of FinTech," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 136-154.
    2. Simon Grima & Murat Kizilkaya & Kiran Sood & Mehmet ErdemDelice, 2021. "The Perceived Effectiveness of Blockchain for Digital Operational Risk Resilience in the European Union Insurance Market Sector," JRFM, MDPI, vol. 14(8), pages 1-15, August.
    3. Erik Feyen & Jon Frost & Leonardo Gambacorta & Harish Natarajan & Matthew Saal, 2021. "Fintech and the digital transformation of financial services: implications for market structure and public policy," BIS Papers, Bank for International Settlements, number 117.
    4. Paul Langley & Andrew Leyshon, 2021. "The Platform Political Economy of FinTech: Reintermediation, Consolidation and Capitalisation," New Political Economy, Taylor & Francis Journals, vol. 26(3), pages 376-388, May.
    5. Fung, Derrick W.H. & Lee, Wing Yan & Yeh, Jason J.H. & Yuen, Fei Lung, 2020. "Friend or foe: The divergent effects of FinTech on financial stability," Emerging Markets Review, Elsevier, vol. 45(C).
    6. Wuqing Wu & Dongliang Xu & Yue Zhao & Xinhai Liu, 2020. "Do consumer internet behaviours provide incremental information to predict credit default risk?," Economic and Political Studies, Taylor & Francis Journals, vol. 8(4), pages 482-499, October.
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    Cited by:

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    2. Syed Aamir Aijaz & Grima Simon & Sood Kiran, 2024. "Assessing the Role of the Fintech Era on the Banking Stability of an Emerging Economy: Interaction Analysis of the Indian Banking Industry," Folia Oeconomica Stetinensia, Sciendo, vol. 24(1), pages 182-202.
    3. Pejman Peykani & Mostafa Sargolzaei & Mohammad Hashem Botshekan & Camelia Oprean-Stan & Amir Takaloo, 2023. "Optimization of Asset and Liability Management of Banks with Minimum Possible Changes," Mathematics, MDPI, vol. 11(12), pages 1-24, June.
    4. Pandey, Dharen Kumar & Hassan, M.Kabir & Kumari, Vineeta & Zaied, Younes Ben & Rai, Varun Kumar, 2024. "Mapping the landscape of FinTech in banking and finance: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 67(PA).
    5. Florin GROSU, 2022. "A Comparative Analysis of the Fintech Ecosystems in Romania and Estonia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(5), pages 646-655, December.

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