Abstract
The article reveals the peculiarities of interaction between banks and FinTech companies. The main stages of development of financial technologies and their differences are examined. The most popular financial technologies used in banking activities are presented. It is substantiated that instead of competing with each other, FinTech companies and banks should be interested in cooperation. The main models of such cooperation are generalized, including: acceleration, partnership, contract and absorption. The advantages and disadvantages of each type of such interaction are analyzed, as well as the factors that hinder cooperation, regardless of the chosen model. The article exemplifies trends of technological innovations and their application in banking activities, which include machine learning, distributed access technologies (Blockchain), artificial intelligence (AI), large data sets (BigData), cloud technologies (Cloud Computing), Smart Contracts, Biometrics and others. It is noted that most often these technologies are used in capital management and financial trading, robotic consultations, online payments (contactless payments, Bitcoin payments), in the management of loyalty programs, digital wallets, money transfers, financial monitoring, etc. They allow banks to optimize their own business processes, increase the number of customers and increase their loyalty, adapt to modern challenges. The risks that a banking institution or bank customers may face as a result of these financial technologies are also identified. The main risks include contradictory and imperfect legislation together with legal regulation of digitalization of banking services, ensuring confidentiality and ethics of personal data, protecting the interests of customers, increased cyber threats.
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