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Disruptions and Digital Banking Trends

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  • Luigi Wewege
  • Jeo Lee
  • Michael C. Thomsett

Abstract

Technology in financial services, or ‘fintech’, entrants and technology-media-telecommunication companies have rapidly evolved into the traditional banking industry, offering customer-centric, faster-easier-convenient-free, financial services. Digital-only-neo-banks focus on payment, money transfer, lending for small-medium-businesses, and microfinancing, facilitating technological innovation such as digital wallet and messaging peer-to-peer transactions. Fintech banks generally lack scale and trust, unregulated in some cases with credit or liquidity risk exposure, from the customers perspective. Fintechs are increasingly perceived as a partner for a source of value creation through technological advances and innovations to large, traditional, and incumbent banks moving to accelerated digital transformation. All innovative technologies which have laid the groundwork for major disruption in the current digital banking revolution, set forth unimagined trajectory of collaboration and consolidation as fintech industry matures. This paper updates the digital banking transformation in fintechs and incumbent banking institutions to show that access to future fintech trends will grow significantly in coming years. The combined findings suggest that digitalised-mobile-banking transitions emphasize the capabilities of banking infrastructure for data sharing, connectivity, stability and cybersecurity and standardisation of internal and external APIs as progress continues within the regulatory framework of data protection as part of the privacy act and open-banking directives. JEL classification numbers: G18, G21, G24, G28

Suggested Citation

  • Luigi Wewege & Jeo Lee & Michael C. Thomsett, 2020. "Disruptions and Digital Banking Trends," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(6), pages 1-2.
    • Handle: RePEc:spt:apfiba:v:10:y:2020:i:6:f:10_6_2
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Easwaramoorthy Rangaswamy & Wong Sin Yong & Gemini V. Joy, 2024. "The evaluation of challenges and impact of digitalisation on consumers in Singapore," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(5), pages 1704-1716, May.
    2. Luiz Tavares & Jose Mazzon & Francisco Paletta & Fabio Barros, 2025. "Bankruptcy analysis using images and convolutional neural networks (CNN)," Papers 2502.15726, arXiv.org.
    3. Łasak, Piotr & Wyciślak, Sławomir, 2024. "The dichotomy of inclusiveness and vulnerability as a consequence of banking platform development," Research in International Business and Finance, Elsevier, vol. 72(PB).
    4. 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.
    5. Faraz Ahmed & Arsalan Hussain & Sajjad Nawaz Khan & Arsalan Haneef Malik & Muhammad Asim & Sadique Ahmad & Mohammed El-Affendi, 2024. "Digital Risk and Financial Inclusion: Balance between Auxiliary Innovation and Protecting Digital Banking Customers," Risks, MDPI, vol. 12(8), pages 1-21, August.
    6. Sladjana Barjaktarovic Rakocevic & Nela Rakic & Rade Rakocevic, 2025. "An Interplay Between Digital Banking Services, Perceived Risks, Customers’ Expectations, and Customers’ Satisfaction," Risks, MDPI, vol. 13(3), pages 1-26, February.
    7. Lambert Kofi Osei & Yuliya Cherkasova & Kofi Mintah Oware, 2023. "Unlocking the full potential of digital transformation in banking: a bibliometric review and emerging trend," Future Business Journal, Springer, vol. 9(1), pages 1-18, December.
    8. Naila Mushtaq & Shama Suleman & Abdul Qayyum, 2023. "Addressing User Concerns: A Qualitative Study on Data Privacy in Mobile Banking," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 135-140.

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    More about this item

    Keywords

    Retail Banking; FinTech; Artificial Intelligence (AI); Data Sharing; Application Programming Interface (API); Data Protection Regulation.;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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