Banks and Fintech-companies

Abstract

The article analyzes the popular hypothesis that banks as independent financial institutions will cease to exist and their business will be taken over by fintech companies. Although many experts believe that in the confrontation between banks and fintech companies, banks are surrendering their competitive positions in the financial market to fintech companies, the article provides facts proving the opposite. The purpose of the study is to assess the competitive position of banks in comparison with fintech companies. The study used a systematic approach, comparative analysis, expert estimates, logical analysis. The article recognizes the fact that there are new competitors in the financial market. However, fintech companies are ahead of banks exclusively in technology, expanding the delivery channels of banking products to customers. The product line of banks is much larger than that of fintech companies. Banks, with the skills and experience of a highly professional banking business, have begun digital transformation. Today banks are transferring their business to new modern technologies. Banking leaders are becoming leaders among all financial market players. This is especially noticeable in Russia, where the largest bank, the Savings Bank of Russia, has officially announced a change in its business model. The Sber ecosystem, he created, marked the beginning of the transition to the next stage in the development of the fintech area. Summarizing the results of the study, the authors of this article proved that universal banks remain the leaders in the Russian financial market both in terms of product line and digital technologies, Russian banks began to develop the non-banking services sector and create integrated ecosystems. Also, the authors substantiated the onset of the era of fintech 4.0, identifying signs that allow making this conclusion.