Research on impact of fintech on financial performance of commercial banks

Abstract

Financial technologies have made a significant change in the financial services market for commercial banks. In order to remain competitive in the market, commercial banks also focus on investing in new innovations and developing new technology based strategies. Because of the decisions made, financial services became more convenient, more easily accessible, and able to meet the growing needs of consumers in a commercial bank. The benefits of using financial technologies in banks are obvious, but it is not clear how this affects the performance of a commercial bank. The purpose of this article – to present the research on the impact of FinTech on the financial performance of commercial banks. In this article, the concept of “FinTech” is defined, the main financial technologies applied in a commercial bank are named, and the directions on the impact of financial technologies are presented. In order to make the analysis of the research, the commercial banks with the largest market share in Lithuania and the financial technologies used there are selected. To assess the impact of financial technologies, the bank’s efficiency and profitability indicators and correlation-regression analysis were selected.