Commercial Banks: Traditional Banking Models Vs. Fintechs Solutions

Abstract

This research is dedicated to ambitions of commercial banks in a form of a comparison of existing traditional banking models Versus FinTech solutions. Examples presented in the study are based on global market and forecasts are based on McKinsey and CB Insights reports. The hypothesis of this research imposed and suggested there are neither traditional model of commercial banks will remain at the constant, instead due to the mutual gain of the symbiosis the symbiosis commercial banks and FinTechs will respond to incentives. Research questions were: i) what are the ambitions of commercial banks in generating profits and how do they change in line with growth of the market of FinTechs? ii) to which extent traditional banking models and FinTechs solutions can be compared by assessed form the perspective of operations?; iii) which scenario out of tradition banking models, FinTechs only and a symbiosis between both is most likely to progress in the closest decade? Findings demonstrate that commercial banks’ financial ambitions continue to transform in line with product diversification they propose, commercial banks transform in their products and pricing will keep in balance between remaining competitive and profitable. The most realistic scenario in the future of commercial banks and FinTech solutions is the in-depth symbiosis.