Financial technology in the Finnish banking sector and changing stakeholder dynamics in the Covid-19 era
Hundal, Shab; Zinakova, Taisiia (2020)
Sylos Labini, Stefania
Julkaisun pysyvä osoite on
Financial Technology (FinTech, hereafter) has integrated with the operations of the financial sector, in general, and banking sector, in particular. However, FinTech is a relatively new and under-explored phenomenon, both in the academic and corporate spheres. The current study aims to explore the following research objectives: the role and relevance of FinTech in the commercial banking sector in Finland; and second, the changing dynamics of stakeholders of the banking industry in the light of FinTech. Due emphasis has been laid on the fallouts of Covid-19 when exploring the abovementioned objectives. The primary data has been collected through interviews, whereas the quantitative data has been sourced by the banks‟ annual reports. The study shows that FinTech has a strong impact on all the main stakeholders and activities in the bank in many ways. Significant impact of FinTech has been observed on the following aspects of the banking sector: customers, investors, operations, competitiveness, and future growth. The respondents‟ opinions and data indicate that the FinTech considerably impacts banks‟ strategy, risk management, operations, and investors. FinTech adoption has been contributed by the growth in the IT sector, in general, and innovations in the field of financing including crowdsourcing, and peer-to-peer financing, in particular. Nonetheless, the unpredictable factors, such as the ongoing Covid-19, can influence the future innovation and adoption of FinTech. Changing customers‟ demands and behaviours have also facilitated FinTech adoption. Banks have been integrating FinTech into insurance services and this feature has become more profound ever since banks increased their cooperation with the international insurance companies. Similarly, there has been a significant increase in collaboration between banks and FinTech start-ups.