I think banks, like other incumbants, first consider whether they can not simply copy, before they consider working together.

Dariusz Prokopowicz Brian Barnard I would like to share a perspective based on my personal observation on the Sub-Saharan Africa(SSA) space. I look at the banks and fintechs at be three levels:

1. existing traditional banksthat are venturing into online services and other innovative fintech driven products – like all banks now have an App and Online banking platform with a wide range of capabilities … from basic to very sophisticated – depending on the bank.

2. Autonomous online banks- very rare if not non-existent as all.

3. Fintechs selling their own products direct to the market and those that are accessing the market through banks/other existing financial services infrastructure or having formal strategic partnerships with banks.

The traditional banks’ aim has been to use online banking to expand client reach, grow revenues, assets and liability and deploy more other products at the minimal costs with minimal non – brick and mortar infrastructure.

FinTech’s are mostly being driven by similar objectives as the banks but I see most of them as having identified a specific gap in the market which they would like to exploit using tech and innovations. Some work, some have worked for a season and gone bust but some are actually now defining the future of banking/ financial services.

Online banks aligned to existing banks of any size would typically already have a captive market, hence it is easier for them to establish an existence in the market.

However online banks that are autonomous and not aligned to the existing bank network have to work at a rate multiple times harder and their innovative ideas have to be either more appealing or solving a real market need that the traditional establishments are failing to fulfill.

what do you mean by online banks? Do you mean banking apps? I am asking because online banks cannot accept physical deposits

@Peterson: ...yet. Although rather user unfriendly, there are automated atms. If you can vend bitcoin, you can do anything.

Hi,

Peterson, In general, online banks are banks, which don’t have physical branch network. They are Internet only and normally offer better conditions to their clients (higher rates on deposits and lower on loans). By electronic fund transfers money can be send via Internet banking to deposits in Internet only banks.

Dear Colleagues,

I'm speaking from the perspective of a bank regulator, I am aware that

Policymakers do not call them "online banks". Policy makers call them ""banks that engage in online banking"

I think this distinction is important, for many reasons.

My earlier comment was speaking to the question on "online banks vs fintech"

Do you have any real-life examples of a previously traditional bank that has gone fully "online" without any physical branch?

The reason I'm asking is because a major requirement for a company to be given a banking license is that the company must have physical presence in several locations (regardless of whether it is a local, regional or international bank). So it might be difficult to see an "online bank" in the academic sense. The mainstream model is still a physical bank with online banking platforms.

Ofcourse, i would be happy to see a fully online bank, if its safety is guaranteed by regulators

Peterson K. Ozili ,

"Do you have any real-life examples of a previously traditional bank that has gone fully "online" without any physical branch?"

will they ever? i perceive the jump too great. to put it differently, they cant. it will likely destroy them.

"...if its safety is guaranteed by regulators "

is this necessary? it would think brand and (as) critical mass are sufficient. very unlikely that a reputable bank will mess up? and what safety will the regulator provide you truly?

@Brian Barnard

That's exactly my point. Having an online bank is a great idea, but it's difficult in practice

I opine that between online banking and fintech there is synergy rather than competition. Fintech enable banking safer, faster and customer-friendly. Imagine when you are making online recharge or pay bill online, you will find the message that you are redirected to a webpage that is not owned by bank. So the webpage developer is a fintech company. Paying through netbanking when shopping or booking online, fintechs are providing technical support to banks which is safer, faster and customer friendly.

agree with Emmanuel Nambware .

Dear Colleagues and Friends from RG,

In my opinion, the main technological determinants of the globally developing e-commerce are factors both influencing and / or correlating with the development of electronic internet banking and the development of technological internet companies called fintechs. Development synergies between these types of commercial entities operating on the Internet are increasingly being realized. In recent years, social media portals have been increasingly used for internet marketing and e-commerce. The key determinants of the globally developing e-commerce relate primarily to the implementation of ICT information technologies and advanced data processing technologies, i.e. industry 4.0 typical for the current technological revolution to computerized, automated transaction systems supporting online trading. In addition, the use of blockchain technology for transaction security systems and data transfer on the Internet. The use of ICT information technologies and advanced data processing technologies i.e. typical for the current technological revolution Industry 4.0 to e-commerce online transaction systems already applies to almost all the functioning of online stores, from computerized sales support systems, logistics, accounting, reporting, risk management to Internet marketing activities and improving security systems for online transactions. Another important determinant of e-commerce development is the development of online mobile banking available on mobile devices and new solutions related to the Internet of Things technology. Online banking is starting to dominate, whose development is determined by technological progress in the field of ICT and Industry 4.0 information technologies. Computerization is also increasingly affecting public sector institutions servicing tax systems and settlements of business entities. In addition, Business Intelligence analytical platforms supporting the management processes of companies operating also in the e-commerce sector have been developed for several years. The analyst of large information sets in Big Data databases is also developing. Big Data Analytics and Data Science analytical systems are also used by businesses operating also in the field of e-commerce. In recent years, new internet marketing instruments have also been developed, mainly used on social media portals, and are also used by companies operating in the e-commerce sector. Internet technology and fintech companies are also emerging that offer information services on the Internet to support marketing management, including the planning of advertising campaigns for products sold via the Internet. To this end, sentiment analyzes are used to survey Internet users' opinions regarding dominant awareness, recognition, brand image, mission and the offer of specific companies. Sentiment analysis is carried out on large data sets downloaded from various websites, including millions of pages of social media portals collected in Big Data systems. The analytical data collected in this way are very helpful in the process of planning advertising campaigns carried out in new media, including social media portals. These campaigns advertise products and services sold via the Internet, available at online stores. In view of the above, the development of e-commerce is mainly determined by technological progress in the field of ICT information technologies and advanced data processing technologies Industry 4.0 and new technologies used in securing financial transactions carried out via the Internet, including e-commerce related transactions, e.g. technology blockchain. On the other hand, as part of the growing competition between internet banks and fintechs, competition is being implemented in the field of implementing modern Industry 4.0 technologies in the field of e-commerce. Fintechs are trying to acquire the features and functions of electronic billing for their e-commece business. Internet banks, on the other hand, enrich the offer of financial services with additional support services for business, including remotely implemented legal advice, electronic accounting, offering free assistance in building a simple website for enterprises in the SME sector, i.e. one of the key customer segments. Therefore, the scope of development synergies between these entities is growing.

I have described the above issues of various aspects of the application of IT systems, ICT information technologies, including Big Data, Business Intelligence in companies operating on the Internet in my scientific publications available on the Research Gate portal. I invite you to cooperation.

Do you agree with me on the above matter?

In view of the above, I am asking you the following questions:

- Are the main technological determinants of the globally developing e-commerce factors both influencing and / or correlating with the development of electronic internet banking and the development of technological internet companies referred to as fintechs?

- Is competition growing in the implementation of modern Industry 4.0 technologies in the field of e-commerce as part of the growing competition between internet banks and fintechs?

Please reply

What do you think about this topic?

What is your opinion on this topic?

I invite you to discussion

Thank you very much

Best wishes

Dariusz Prokopowicz

A taxonomy for cooperation between banks and fintechs...

Drasch, B. J., Schweizer, A., & Urbach, N. (2018). Integrating the ‘Troublemakers’: A taxonomy for cooperation between banks and fintechs. Journal of Economics and Business, 100, 26-42.

Banks n fintechs-differences-bus. models n etc.

Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35-46.

Strategic alliances between banks and fintechs...

Klus, M. F., Lohwasser, T. S., Holotiuk, F., & Moormann, J. (2019). Strategic alliances between banks and fintechs for digital innovation: Motives to collaborate and types of interaction. The Journal of Entrepreneurial Finance, 21(1), 1.

Banking and Fintech: a challenge or opportunity?

Romānova, I., & Kudinska, M. (2016). Banking and Fintech: a challenge or opportunity?. In Contemporary issues in finance: Current challenges from across Europe. Emerald Group Publishing Limited.

Case of shadow banks...

Buchak, G., Matvos, G., Piskorski, T., & Seru, A. (2018). Fintech, regulatory arbitrage, and the rise of shadow banks. Journal of Financial Economics, 130(3), 453-483.

Dear D. A. Gayan Nayanajith, Thank you very much for the bibliographic sources provided. Thank you for providing valuable data sources in the above issues. I am pleased with the development of scientific cooperation on related topics.

Thank you very much.

Best wishes.

Dariusz Prokopowicz

Many Thanks for initiating the discussion...

Kind Regards,

Gayan

Sri Lanka

Following argues towards synergy rather than competition...

Klus, M. F., Lohwasser, T. S., Holotiuk, F., & Moormann, J. (2019). Strategic alliances between banks and fintechs for digital innovation: Motives to collaborate and types of interaction. The Journal of Entrepreneurial Finance, 21(1), 1.

In view of the above, I would like to inspire and encourage joint discussion on the following issue: Are internet banks adding advisory and assistance services to their offers addressed to customers who are business entities of the SME sector, e.g. setting up a website for a form, assistance in settling business issues in tax matters and contacts with state institutions, establishing an online store, advisory assistance in accounting, etc. are they increasingly acquiring the features of fintechs?

What do you think about it?

Thank you very much and best regards,

Dariusz Prokopowicz

...US banks have invested heavily in developing online capabilities, with the expectation of migrating customers to the new cheaper delivery system. Results in the USA thus far have been mixed at best; market penetration is low and customer usage is sporadic ... Sarel, D., & Marmorstein, H. (2003). Marketing online banking services: the voice of the customer. Journal of Financial Services Marketing, 8(2), 106-118.

... Notwithstanding internet banking is now widely used by retail customers, little is known about its effect on the banking industry. In this paper we study how internet banking relates to branching policies in Italian local credit markets. .. Carmignani, A., Manile, M., Orame, A., & Pagnini, M. (2020). Online banking services and branch networks (No. 543). Bank of Italy, Economic Research and International Relations Area.

… services industry see the boom in FinTech as a threat to traditional banking industry. Others believe that FinTech has become a challenge that can be turned into an opportunity … Romānova, I., & Kudinska, M. (2016). Banking and Fintech: a challenge or opportunity?. In Contemporary issues in finance: Current challenges from across Europe. Emerald Group Publishing Limited.

Dear D A Gayan Nayanajith, Thank you very much for participating in this discussion and for a substantive, constructive reply. A very good answer on this topic. Thank you for the information provided and the link to interesting data in the above-mentioned issues. Your perspective on this issue is interesting and very accurate. Your statements confirm that the above-mentioned issues are current and developing. I am very glad that the discussion on this important topic is developing.

Thank you very much and best regards, Have a nice day,

Dariusz Prokopowicz

The SARS-CoV-2 (Covid-19) coronavirus pandemic accelerated the digitization and internetization of economic processes in companies and enterprises, as well as the development of online and mobile banking. The scale of e-commerce development has also increased, many new online stores have been created, and the scale of payments and settlements carried out remotely via the Internet has increased. Internet banks are more and more actively trying to attract new customers by offering additional, non-financial services to entrepreneurs who set up a company account at an online bank. As part of additional services, financial and tax advisory services are offered, the possibility of setting up a website for the company, setting up an online store as a subpage of the client's profile in the bank's electronic branch, etc. Therefore, online banks try to expand their offer with non-financial, additional services that so far they have been offered by non-financial business entities. In this way, online banks acquire some of the features that until recently were typical of technological companies operating on the Internet and fintechs.

Regards,

Dariusz Prokopowicz

About 43% of other digital activities in the UK are owned by Fintech.

Brazil is a country that has grown 6 times more than FinTech startups in the last two years. According to the report, it covers almost all digital activities in Brazil.

Countries that account for 40% of FinTech. Australia, Spain, Mexico, Germany, South Africa and the United States are other countries where the prevalence of fintech industry is higher than the global average.

According to the report, FinTech accounts for 33% of the world's total digital activity.

According to reports, last year the United States saw a significant decline, since investment in Fintech in the face of the latest statistics Fintech's share of total digital activity in the United States is 33%.

In countries such as Hong Kong, North Korea and Switzerland, this share has decreased by 30%, in fact, FinTech activities in these countries are reported below the global average. According to the latest reports, the emergence of new financial services technologies in Hong Kong in recent years shows Fintech's vast potential in East Asia. According to statistics, Fintech's share of total operations. Digital in France, the Netherlands, Ireland and Singapore to less than 30

The percentage reaches. According to experts, special attention should be paid to FinTech activities in Singapore. central bank

Singapore has been launching the Fintech Innovation Program from 2015 to 2020 and intends to attract various startups from around the world by forming information groups.

Singapore is also home to a significant number of Fintech startups. Canada, Japan and Belgium are among the countries surveyed. Fintech has the lowest share of digital activity. In these countries, the share of financial technology activities is less than 20%. As it turns out, Fintech is now a multi-billion dollar industry. of course not

The industry is also controlled by startups that use technology to provide new solutions for financial services and products.

they give . On the other hand, giants like Apple and Google can afford to pay with them

1. Introduction

2. Google Pay

Have mobile payments under Apple. Google has also entered the market with more performance. Paid business and is closely associated with such companies.

T-Mobile, AT&T, Verizon One of the main applications is the Google Walt payment program. The software available on Android phones that these companies sell. It also shuts down Apple Pay.

And all of these are based on powerful terminals and payment systems for chips and pins, which improve the user experience.

This phenomenon is not limited to Western countries. Internet giants love Alibaba

Their services are banking services that are provided without branches such as Webbank and Ant Financial. This technology not only expands the financial sector, but also makes it possible. It also provides wider access to banking and financial services.

Bitcoin is an example of FinTech Most people react when they first talk about Bitcoin. They are no doubt negative or confused in their understanding of it.

The most important social and economic contribution of Bitcoin, use a decentralized system for registration and shared networks. Create a world using FinTech. Free source software can be run simultaneously by many users anywhere in the world. The second feature of Bitcoin is the elimination of the need for intermediaries to verify transactions or records.

Below you can see examples of FinTech.

1. Apple Pay

2. Google Pay

3. Verizon

4. AT&T

5. T-Mobile

6. Google Wallet

7. Default

8. NFC

9. Alibaba

10. Tencent

11. WeBank

12. Financial Ant

13. Peer to Peer

Business, banking, and financial organizations in the USA and Europe are very closely related to Fintech. This is no longer just a connection, but a symbiosis of technology, finance, and commerce. According to the research by IndustryARC’s market analyst, the Fintech market volume exceeded $150 billion last year and continues to grow.

That is, in today’s article we’ve made the research on such related questions:

• What are the main directions for the development of financial technologies in 2021?
• Fintech integration: why do the bank and business need it?
• What do the digital ecosystems mean for the bank, Fintech, and the customer?
• How to understand in which direction to develop your digital ecosystem and how to position it?

Dear Jafar Sepahvand,

Thanks for the substantive information on the development of fintechs in selected developed countries. Thanks also for providing examples of key technology companies classified as fintechs.

Thank you very much,

Best regards,

Dariusz Prokopowicz

More competition between fintech and online banks initially. However, as this progresses, synergy will be found to coexist as they need to leverage on each other on scarcity of resources and talent.

Dear Chung Tin Fah,

Yes. As part of the development of online payment and settlement technologies, the synergy between fintechs and banks may increase rapidly in the coming years.

Thank you very much,

Best regards,

Dariusz Prokopowicz