Investigation of financial technologies‘ impact on financial sector

Abstract

Today, the economic downturn in the financial sector due to the COVID-19 pandemic is forcing the country to look for measures to change the structure of the economy. Financial market participants and FinTech companies are starting to offer products aimed at creating new, efficient business management models and facilitating financing processes. The popularity of financial technologies is welcomed due to lower prices, more affordable deals and cheaper services. However, the increase in the number of FinTech companies strengthens competition in the financial markets by providing financial services that are not provided by traditional financial institutions or are less efficient. Due to the novelty of the FinTech sector, there is still a lack of research on this topic. In this article, the theoretical part examines the concept of financial technologies, the components of the financial sector and FinTech ecosystem. The article uses scientific literature and correlation - regression analysis methods. T he analytical part performed financial sector analysis and examines, or the number of Lithuanian FinTech companies, the capital invested in FinTech companies, the number of mutual lending investors and the number of FinTech employees affect the banking sector The chosen approach helped to reveal that financial technologies have a negative impact on the deposit-to-loan ratio of the banking sector.