Fintech and Intermediation: the Economic Analysis Insight

The goal of this article is to analyze the consequences of the emergence of the Fintech on the forms of financial intermediation. The idea that Fintech is likely to favor decentralized forms of financing (like those characteristic of the financial markets) is discussed. Financing platforms can be analyzed as forms of re-intermediation since the role of banks in this market is very important. Balance sheet intermediaries have important features that will not be challenged by the Fintech and traditional forms of banking will not disappear. On the other hand, the Fintech are likely to restructure the banking market because of the Bigtech's entry on this market. Bigtech are indeed able to exploit new economies of scope generated by their electronic commerce activity. Finally, the banks' capacities to cope with these evolutions are studied.