FinTech and the Future of Banking

Abstract

Abstract A recent technological wave resulting from both technological advances and increasing bank regulation, known as FinTech, has the potential to revamp bank business models. In this chapter, we review the very recent academic literature that has developed to understand and explain the benefits and the pitfalls of FinTech lending. We analyse the interplay between technology and recent bank regulations in driving the rise of FinTech firms, whether these newcomers act as competitors or complements to traditional bank lending, as well as the liability side of the FinTech lenders and the behaviour of their investors.