Abstract
The role of financial technology companies increases every day. From one side this process generates more possibilities for consumers from other side it is related with new risks which arise in banking sector. At the beginning of FinTech era lots of analyst were discussing about disruptive potential in financial services. Later, however, we can see more discussions about cooperation between FinTech companies and banks. The other point which is very important to discuss about is a financial inclusion. The purpose of this study is to analyze the interaction between banking sector and FinTech companies. We use a case study of Lithuania because here FinTech sector is growing very intensively. First of all we try to analyze the scientific literature which analyzes the main aspects of FinTech sector. The second part of the article provides the progress of the FinTech sector and presents the main points of methodology. The research of the FinTech sector in Lithuania was focused on strengths, weaknesses, opportunities, and threats (SWOT) and political, economic, social, technological, environmental, legal (PESTEL) analysis and main statistical parameters. We also used a correlation and regression analysis together with qualitative assessments. Our results showed that in order to value the interaction between banking and financial technology better to focus on qualitative assessment because only statistical analysis can give different and wrong results. We identified that both sectors interact with each other and there is no a disruptive effect of FinTech in Lithuania.
Highlights
Introduction nal affiliationsNew technologies have touched all aspects of human life, so finance is no exception.In the last decade, financial technology is probably the most commonly used term in the entire financial sector
As the analysis of the scientific literature revealed that Lithuania aims to become the financial technology (FinTech) centre in Europe, due to the favourable regulation and the central bank attitude, it was chosen to study the influence of Lithuanian FinTech companies on the Lithuanian banking sector
After analyzing the scientific literature, we support the understanding that “FinTech can be identified as a technologically feasible financial innovation helping to create new business models, applications, processes or products which have a significant impact on financial markets and institutions and the provision of financial services”
Summary
Financial technology is probably the most commonly used term in the entire financial sector. This is one of the fastest growing areas of technology. Investments in financial technology (FinTech) companies amounted to just 2 billion US dollars in 2010, in 2015 the investment had already exceeded 15.5 billion US dollars and projected investments in companies of this sector could reach 130 billion US dollars in 2020 (Accenture 2015). Following the global financial crisis of 2008, FinTech began to develop very rapidly, improving and changing trade, payments, investments, insurance, settlements and their security, and even the money itself. U.S economist Nobel Laureate Milton Friedman was the man who in the late 1980s predicted that “the Internet would limit the state’s monetary system in the future and lead to the emergence of digital money that would allow anonymous
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