UDC: 336.7
https://doi.org/10.25198/2077-7175-2019-6-61
DRIVERS OF FINTECH COMPANIES AND THEIR IMPACT ON FINANCIAL INSTITUTIONS
A.I. Molokanov
Financial University under the Government of the Russian Federation, Moscow, Russia
e-mail: mainla@yandex.ru
Abstract. The relevance of this study is consider in the transformation of the banking business under the influence of the development of innovative financial technologies. The formation of the fintech industry market entailed changes in the entire financial sector, and non-bank financial institutions competed vigorously with classic banks. Numerous factors contributing to this development, such as: demographic, macroeconomic, determining consumer preferences, contributing to the development of cybersecurity requirements, regulatory, determine not only the specifics of the changes and the reasons for the growth of competition, but also consumer behavior, together creating a new institutional landscape. The growing demand of customers for quality financial services is accompanied by the need to specialize suppliers in specific niches in order to achieve greater loyalty to the company, but reproduction of classic consumer patterns is impossible: transparency of the environment facilitates the flow of resources and makes it more difficult to retain consumers. Meanwhile, the structure of the market is becoming more complicated and, against the background of risk transformation, regulatory requirements for participants are increasing. However, the issue of developing regulatory policies remains open, and the regulation of individual technologies does not produce the desired result. Meanwhile, moving in line with the old paradigm is becoming more impossible: the stopping influence of local regulatory institutions creates interregional distortions, which in the context of globalization reduces the competitive position of national financial companies. The purpose of the article is to highlight the key drivers of the development of the financial ecosystem and identify their impact on the transformation of financial institutions. The work uses general scientific methods of cognition: analysis and synthesis, generalization, induction. The main results of the study include the allocation of reference points for the development of financial technologies, the identification of sources of growth, stability and imbalances in the financial system. The novelty of the study is in highlighting the vectors of banking business development in the context of the growth of the fintech industry. The results obtained can be used by banking institutions in the process of transforming their business models, as well as by regulatory authorities to build effective prudential policies.
Keywords: financial institutions, banks and non-banking organizations, innovative financial products, fintech, impact of financial technologies on financial market organization.
Acknowledgements: the study was conducted with the assistance of doctor of economics, E. V. Travkina, Professor of the Department of financial markets and banks of the Financial University under the Government of the Russian Federation.
