FINTECH AND COMMERCIAL BANKS: COMPETITION AND OPPORTUNITIES OF COOPERATION

Abstract

Introduction. Recent fundamental changes have taken place in all spheres of society, primarily related to the development of technology. The financial sector is no exception: every year both consumers of financial products and services and their producers are more and more committed to the introduction of new technologies. The pioneers of these changes are FinTech companies, which have managed to achieve significant development over the last decade, and which continue to grow. Traditional financial intermediaries are beginning to be wary of their market shares and see FinTech companies as new competitors. However, it is thanks to them that the financial market can reach a new level, and if their efforts are combined with the knowledge and experience of commercial banks - titans of financial intermediation, a number of benefits for them and for the financial system as a whole will be got. Purpose. The article aims to research the reasons for the rapid development of FinTech companies, possible ways of cooperation between them and commercial banks and the benefits that financial markets will receive from these associations. Method (methodology). General scientific research methods, such as analysis, synthesis and deduction, methods of theoretical substantiation, statistical analysis, comparison, abstract-logical, graphical and tabular methods were used. Results. The article describes the main advantages and disadvantages of FinTech companies compared to commercial banks, which are, on the one hand, their innovation, adaptability and speed of response to environmental change, and, on the other hand, the presence of additional risks. According to this, the prospects of cooperation between FinTech companies and commercial banks and the benefits that will be received by all financial market participants were considered. The article also outlines what activities banks and FinTech companies will engage in as part of such cooperation and what stages they will need to go through to achieve maximum results.