The Role of fintech in the Innovation and Transformation of the Banking Industry

Abstract

The rapid development and large-scale application of artificial intelligence, data mining, big data, and cloud computing have already led to dramatic changes in the ecological conditions of social and economic agents. Under the rapid technological development, traditional commercial banks are facing problems such as insufficient development momentum. Therefore, to accelerate its digital transformation, financial technology (fintech) has prompted the banking industry, so as to keep up with the development trend of the times and empower the innovation of commercial banks. Specifically, by analysing the current situation and the impact of the relevant major fintech on the development of the banking industry, this paper aims to gain insight into the advantages and directions of the transformation. The final conclusion of this paper is that, currently, all regions are spending more money on investing in the fintech industry. However, the underlying technological strengths are unevenly developed, with Europe and the US being the most prominent and the Asia-Pacific region catching behind. Fintech represented by artificial intelligence, big data, and cloud computing, can reduce banks' operating costs, helping them accurately profile their customers and intelligently do marketing.