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The Digital Transformation and Disruption in Business Models of the Banks under the Impact of FinTech and BigTech

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  • Oona Voican

    (The Bucharest University of Economic Studies, Romania)

Abstract

This article examines the impact of FinTech and BigTech on the business models of banks. The article notes the explosive development of artificial intelligence, machine learning, and big data methods in the financial-banking field in the last 10 years, which has led to profound changes aimed at increasing the efficiency and profitability of businesses. The article identifies five areas where FinTech and BigTech can provide improvements in business models for banks: introducing specialized platforms, covering neglected customer segments, improving customer selection, reducing the operating costs of banks, and optimizing the business processes of banks. The article concludes that applying concepts from artificial intelligence, together with the continuous increase of the volume, complexity, and variety of data that banks collect, store, and process, has led to the transformation of business models in the banking sector.

Suggested Citation

  • Oona Voican, 2020. "The Digital Transformation and Disruption in Business Models of the Banks under the Impact of FinTech and BigTech," Database Systems Journal, Academy of Economic Studies - Bucharest, Romania, vol. 11(1), pages 117-127.
    • Handle: RePEc:aes:dbjour:v:11:y:2020:i:1:p:117-127
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    File URL: https://www.dbjournal.ro/archive/31/31_16.pdf
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    References listed on IDEAS

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    1. Ayadi, Rym & De Groen, Willem Pieter, 2014. "Banking Business Models Monitor 2014: Europe," CEPS Papers 9713, Centre for European Policy Studies.
    2. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
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    Cited by:

    1. Florian Diener & Miroslav Špaček, 2021. "Digital Transformation in Banking: A Managerial Perspective on Barriers to Change," Sustainability, MDPI, vol. 13(4), pages 1-27, February.
    2. Sharbek Nermin, 2022. "How Traditional Financial Institutions have adapted to Artificial Intelligence, Machine Learning and FinTech?," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 837-848, August.
    3. Shobande, Olatunji A. & Ogbeifun, Lawrence, 2023. "Pooling cross-sectional and time series data for estimating causality between technological innovation, affluence and carbon dynamics: A comparative evidence from developed and developing countries," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    4. Ying Chu & Shujun Ye & Hongchang Li & Jack Strauss & Chen Zhao, 2023. "Can Digitalization Foster Sustainable Financial Inclusion? Opportunities for Both Banks and Vulnerable Groups," Sustainability, MDPI, vol. 15(8), pages 1-21, April.

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