Analysis of financial technologies impact on banking sector

Abstract

Online banking mobile payments and other innovative financial services have become inseparable parts of our everyday lifes. Investments to FinTech are reaching record highs therefore, it is often said that financial technology institutions are going to transform our current banking system and reduce its popularity. FinTech services are globally used in our modern life, although, there is still a lack of scientific research as the topic is quite new and not fully explored. Therefore, this article explores the relationship between FinTech companies and the banking industry, positive and negative aspects are distinguished through systematized and synthesized scientific literature. Earlier, banks had high rates and long transaction times for international payments, but with the arrival of FinTech companies, the costs and time of transactions has dropped significantly, which has also affected the banking sector. The analytical part analyses the influence of Lithuanian FinTech companies engaged in international payments – Revolut, Paysera and TransferGo on Lithuanian banks applying multi-criteria methods: SAW, TOPSIS and EDAS. These methods helped to reveal which company in Lithuania has the biggest impact on the banking sector. Limitations of the study are statistical information as the selected period is 2018.