Yes it certainly will.

Information and Communication Technologies have made banks much more efficient and reduced their fees. The competition with the Fintechs represents a new round of lowering these fees.

نعم

Dear Friends and Colleagues of RG,

For several years, financial services have been developed also by fintechy as support for electronically settled accounts and payments made to customers paying for delivered products and non-financial services. The increased competition of banks with fintechs in the field of online payments and settlements may become an important factor in the reduction of fees for services in the context of electronic online banking?

Please reply

I invite you to the discussion

Thank you very much

Best wishes

Dear Emmanuel V Murray, Roberto - Minadeo, Alyaa Sadee, Afraa Ibrahim

Dariusz Prokopowicz

Dear Roberto - Minadeo,

Based on my research, I also came to the same conclusions. Yes, ICT, internet and Prtzemysł 4.0 information technologies are implemented in internet and mobile electronic banking. Internet and mobile banking is developing rapidly as it increases efficiency, is more convenient for customers, is cheaper, and facilitates online purchases. These issues determine the growth in the development of online and mobile banking during the SARS-CoV-2 (Covid-19) coronavirus pandemic. In the future, there will be an increase in competition, an increase in the scale of competition between internet banks and fintechs in various fields of activity.

Best regards,

Dariusz Prokopowicz

Yes in long run...… charges should account for the degree of friction and rivalry in the banking environment...Vives, X. (2019). Competition and stability in modern banking: A post-crisis perspective. International Journal of Industrial Organization, 64, 55-69.

FinTech entrants pose a threat by reducing banks' profits and increasing the riskiness of banks' loan portfolio...Parlour, C. A., Rajan, U., & Zhu, H. (2020). When fintech competes for payment flows. Available at SSRN.

… Industry reports estimate that $4.7 trillion, or about one- third of bank revenues, are vulnerable to such fintech competition...Van Loo, R. (2018). Making innovation more competitive: the case of Fintech. UCLA L. Rev., 65, 232.

Dear D A Gayan Nayanajith,

Thank you for your answers, comments and references to literature sources. Yes, the issue of interventionist financial support programs, the creation of new innovations increasing the scale of the development of the digitization of the economy, the development of internet banking, the pace of implementing new information technologies, ICT, internet and Industry 4.0 into economic processes, are important factors conditioning the development of fintechs.

Thank you, Greetings,

Dariusz Prokopowicz

Commercial banks are increasingly developing online and mobile electronic banking. The SARS-CoV-2 (Covid-19) coronavirus pandemic accelerated these processes, i.e. the processes of internetization and digitization of economic processes and remote communication. In order to attract new customers, Internet banks add support services to their electronic banking offers, consisting in the possibility of setting up an Internet trading platform on the bank's subpage, a website for new customers, i.e. business entities from the SME sector. In addition, electronic banking offers aimed at companies from the SME sector are enriched with advisory services, accounting and tax services, etc. In this way, commercial banks may also adopt some of the features typical of fintechs in the future. On the other hand, fintechs are increasingly developing their own solutions for online settlements and payments for products and services offered to Internet users. It happens that products and services are offered on social networking sites and payments can be made without banks. In the future, the importance of cryptocurrencies in this type of settlement may increase.

Best wishes,

Dariusz Prokopowicz

Dear Emmanuel V Murray,

Thanks for the answer. I am glad that you confirm the above theses of this discussion.

Thank you, Regards,

Dariusz Prokopowicz