The Impact of Fintech on the Structure of Banking Markets

The paper investigates how Fintech can influence the structure of banking markets. Fintech have several competitive advantages relative to traditional banks. They have lower costs thanks to the use of information technologies at the core of their business model. They can supply services with higher quality like a greater reactivity facing the demand of a credit. There are however limits to the impact of Fintech. Traditional banks can have an advantage for financial costs because of their deposit-collection activity. The technological advantage of Fintech can be more or less important based on the fact that private information on the borrower plays a major role on the credit market.