Maastrict University

Bachelor Thesis
Finance major

Impact of recent innovation and entrant on traditional Banks

Author: Superviser:

Sebastian de Biolley Jonas Wogh

I6206873

A literature review submited in the fulfillement of the requirements for the

bachelor degree of Business and Economic Business

Word counts: 4652

17 pages

January 28, 2022

1
Table of Contents
1.Introduction ............................................................................................................................................. 3
2. Literature process, keywords and phrases .......................................................................................... 3
3. Key driver of Fintech revolution .......................................................................................................... 4

4. Main innovation in the third Fintech era ............................................................................................. 5

4.1 Artificial intelligence and Big Data ................................................................................................... 6
4.2 Distributed computing ....................................................................................................................... 7
4.3 Mobile access ..................................................................................................................................... 8
4.4 Cryptography ...................................................................................................................................... 8
5. The impact of fintech on traditional Banks ........................................................................................ 9
5.1 Fintech advantages ........................................................................................................................... 10
5.2 Rules and regulation ........................................................................................................................ 10

5.3 Fintech collaboration with traditional Banks .................................................................................... 10

6. Big Tech impact on traditional Banks ................................................................................................ 11

6.1 Big Tech advantages ........................................................................................................................ 11
6.2 Alibaba example ............................................................................................................................... 11
6.3 Big Tech collaboration with Traditional Banks ............................................................................... 12
7. Limitations and areas for future research ......................................................................................... 12
7.1 Limitations ........................................................................................................................................ 12
7.2 Areas for future research ................................................................................................................... 13
8. Conclusion ............................................................................................................................................ 13

8. Reference ............................................................................................................................................... 15

2
1. Introduction

After the agricultural and industrial revolutions, the globe is undergoing a global technology revolution
(Anton et al., (2001)). New technology influences our daily life and consumer needs and behaviours in
various sectors. The banking system is an important sector for the global economy as it unlocks wealth,
creates opportunities, provides jobs and facilitates commerce. In this paper, we will take a close look at the
innovation in this crucial industry. Last decade, the financial world was marked by low-interest rates, low
credit growth, increased regulation, compliance requirements, and a damaged reputation. Along with these
threats, significant innovation and new entrants are changing the banking sector. The top ten largest banks
by assets a decade ago were all based in Europe or the United States, but now the top 10 are dominated by
six Asian banks (Shukla, 2021). This transition can be connected not only to the 2008 crisis and Asia's
ascent; banks have also to deal with a digital disruption caused by growing competition in retail from
financial technology (FinTech) and platform-based competitors. The sector's profitability is in jeopardy,
with European banks barely paying their capital costs. The question which we will try to answer along this
paper is:

What is the impact of innovation and new digital competitors on traditional Banks?

This paper sets out how banks are exposed to digital disruption of their business models and focus on
technological innovation which changes financial services. These innovations are essential to study because
they can increase customer satisfaction, market access, efficiency and the range of products offered while
also lowering costs to clients. The industry is undergoing significant restructuring and reorganization as it
transitions to a customer-centric strategy. Competition has already intensified with these new players, but
the long-term impact is uncertain.

This paper will analyze the technological disruption in banking processes and the impact of new entrants
in the industry on traditional banks. We will look at the reasons that drive the Fintech revolution, then
examine the most significant innovations from the third fintech period, which began after the global
financial crisis of 2008, by analyzing relevant examples. Following that, we will look at the influence of
Fintech and, ultimately, Big Tech companies on the banking industry.

2. Literature process, keywords and phrases

Since it is an important subject, many papers are written around this topic, and since this topic keeps
changing and evolving, we chose to focus primarily on recent articles. Google scholar was the leading
platform for the literature search process. 45 relevant references were preselected. These information

3
sources were reviewed and 33 references were selected because of their well-fitting topical focus (11 journal
articles, 7 reports, 3 conference reports, 1 book, 9 articles, 2 Database articles).

Key words and phrases: Fintech / History of Fintech / New innovation in banking / Blockchain / AI/Bigdata
/ Cryptography / M-pesa / Fintech advantage and disadvantage / Fintech impact on Banks on traditional/
Fintech regulations/ Big Tech advantages for finance/ Ant Financial (Alibaba group)/ Collaboration of Tech
companies with Banks

3. Key driver of Fintech revolution

Fintech stands for "financial technology," which refers to applying new technological advances to financial
products and services. Fintech already has and still is transforming the financial landscapes. The first era
of fintech lasted from 1866 to 1967, during which the world discovered rapid transmission of financial
information transactions and payments, starting when the first transatlantic cable was successfully laid.
Later, with the first digital stock exchange and SWIFT (Society for Worldwide Interbank Financial
Telecommunications), the second period was defined by conventional financial institutions' adoption of
information technology to enhance goods and services (G., 2020). In 2008 started the third era; due to the
subprime crisis, people started distrusting traditional banking, precipitating the apparition of new start-ups
called Fintech companies. These new entrants are providing non-intermediated financial services directly
to customers available at their fingertips. In this part, we will analyze the drivers of this Fintech revolution.

The introduction of smartphones is a critical driver of the revolution; smartphones enable customers to
contact banks and monitor their bank accounts in real-time. With the sophistication of new mobile banking
apps, customer demand has shifted. They no longer want to attend queues to withdraw cash wait for
extended periods for money transactions or deposits. People expect simple banking systems and rapid
solutions to their problems; they do not have the patience they used to have (Editorial Team, 2018). They
also want to know more transparently what their bank is offering; Fintech businesses focus on their
customers rather than on the services they provide, thus better adapting to today's client needs.

With the smartphone came the increase of online payments: online shopping, booking, investments, and
mobile to mobile payments. Traditional banks did not offer the best security for online payment; this
boosted the arrival of online platforms and applications with better, smarter security protocols to secure
customers' transactions and data. Over the past years, financial security increased with biometric
authentication on mobile banking (Gomber et al., 2018). Fintech has been able to reduce cybersecurity risks
by focusing on machine learning and advanced Fraud analytics.

4
4. Main innovation in the third Fintech era

The explosion of big data on individuals and firms, advances in artificial intelligence, cloud computing and
cryptography triggered the expansion of Fintech, with a particular focus on transaction executions
(payments, clearing and settlement), funds management (deposits lending, capital raising, investment
management/advice) and insurance. Algorithms, big data, peer-to-peer lending, and crowdsourcing
dramatically change the way services are delivered in the financial sector while also improving competition
issues such as switching costs and high transaction costs. These innovations lower the cost of intermediation
and make financial services accessible to a broader range of people. To summarize, we can say that Fintech
is concentrated in four major sectors: Artificial intelligence (AI)/Big data, distributed computing,
cryptography, and mobiles access (He et al., 2017). Figure 1 shows the link between technology
advancements and financial services.

Figure1. Summary of emerging technologies used to develop new financial services

*B2B stands for “Business to Business” companies that sell to one another, rather than a business selling
to individual consumers

*P2P stands for "Peer-to-Peer," which in finance allows individuals to get loans without the involvement
of a financial institution

5
4.1 Artificial intelligence and Big Data

Fintech can analyze, visualize and process massive data sets better than traditional banks. They are experts
in big data analytics; they research into a massive database containing the transaction of billions of
individuals to reveal hidden patterns and secret correlations (Sagiroglu et al., 2013). They use AI/Big data
for asset trading to create robot advisors, automate credit approvals and detect frauds. Machine learning
and deep learning can derive patterns from economic agents used to predict behaviour and prices and thus
mimic human judgment in automated decisions. Combining this with artificial intelligence, they can create
an application that can automate advice. Robo advisors give algorithm-driven financial planning services
with no human interaction; they create optimal portfolios based on investor preferences and have the
advantage of being cheaper and more secure than their human counterparts (He et al., 2017). Moreover, the
minimum amount required is less than the minimum amount required by financial advisors allowing poorer
people to benefit from financial advice. However, Robo-advisors cannot yet know clients and human
advisors through multiple interactions; thus, wealthy investors will continue to use financial advisors.
According to the department research team of Statista in the United States, assets under management of
Robo-advisors in 2017 was around 223 860 million dollars, 999 036 million in 2021, and should attain 1
913 216 million in 2025. Thus, traditional banks that offer financial advice should adapt by lowering their
price range of financial advisors and should invest in this technology to stay competitive in the future and
not lose the opportunity to increase their customer’s base.

Another promising use of AI is fraud detection. Clients see security as a priority in the banking world.
Machine learning is the best solution to prevent fraud losses; thus, traditional banks have to work together
with FinTech’s to improve in that area. Online lending adds value to profitability and the customer
experience in the credit lending space. According to a survey made in 2017 by a national collaboration of
the 12 federal banks in the US, 33% of respondent customers of large banks were not satisfied with the
waiting time for a credit decision, and 28 % had difficulties with the application process against 10% of
applicants to online lenders were dissatisfied for the same reasons. FinTech’s are disrupting banks and
helping them trade between each other and other firms. Using AI banks can bring efficiency to the manual
process of originating and distributing trade finance assets. The current distribution of assets is manual; the
process is conducted over the phone, excel sheets, and emails; much paperwork needs to be exchanged
before a deal can be finalized. FinTech’s such as TRADEASSETS already created platforms that enable
banks to buy and sell bank risk assets in hours or minutes compared to days with the manual process.

4.2 Distributed computing

6
Distributed computing presents a new option for banking systems. A distributed computer system
comprises several software components that are installed on different machines yet execute as one (Qianjiao
& Rong, 2010). Distributed ledger such as blockchain technologies might perhaps be the most disruptive
technology in the Fintech industry. The Blockchain is like an accounting ledger. The space in the books is
limited; you take a new book every 10 minutes. You write all the transactions in this book for 10 minutes,
then you take a new book and write all the following transactions for the next 10 minutes, and so on. All
books are numbered in order.

Each book contains a summary of the previous book, which corresponds to the unique code. So, if we have
just finished book 570, we will get a unique code and put it at the end of the last page of our book. We will
also put this unique code at the top of the first page of the next book, book 571. This summary, this unique
code, will allow us to link the books together. These books, which are, in fact, blocks, together form the
Blockchain. Thanks to Blockchain, we can record, share, and synchronize data across a network of various
data stores. The major reason blockchain technology is disruptive is that it allows transactions to take place
directly between the parties to the transaction for the first time, in a secure, tamperproof, and immutable
manner, without the need for an intermediary (William Cong et al., 2019).

Blockchain-enabled Fintech to create Peer-to-peer lending platforms. P2P lending is a method of debt
financing that enables individuals and businesses to lend or borrow directly from each other through an
internet-based platform without the involvement of a bank or other traditional financial institution (Chunyu,
L et al., 2011). On P2P lending platforms, investors can easily identify support projects or investment
opportunities of their interest; and borrowers can obtain loans with lower interest rates than passing by a
Bank. However, P2P lending has risks; the biggest is that P2P lenders have to assume the credit and liquidity
risk themselves. As explained in the report “Virtual Currencies and Beyond distributed ledger”, a
blockchain-based form of finance has the potential to transform payments securities settlement, allowing
B2B or P2P transaction bypassing intermediaries and offering currency substitutes. In the case of the most
famous crypto, Bitcoin, the Blockchain allows users to exchange money. The network nodes secure
exchanges, all transactions since 2008 are publicly available on the internet, and the absence of an internal
control body allows for total decentralization. Cryptocurrency has different benefits; it provides real-time
and secure money transfers that can help strengthen the control over the capital of a company and help
manage the risk and opportunities in engaging in digital investments (Deloitte, 2021).

4.3 Mobile access

Mobile access and the internet allow sharing technology with billions of consumers; mobile phones are
portals for accessing financial services. In 2007 in Kenya, Vodafone and Safaricom created an SMS money

7
transfer system called M-Pesa. In September 2009, over 8.5 million Kenyans had registered to use the
service. A value equivalent to 10 per cent of Kenya’s gross domestic product had been transferred over the
system since inception (Eijkman et al., 2010). Before M-Pesa 2 out of 10 Kenyans did not have bank
accounts and could not easily transfer money. Thanks to M-Pesa in Kenya, everyone who possesses a phone
can transfer money without having a bank account instantly and securely. Users deposit money into an
account saved on their phones, send balances to other users via PIN-secured SMS text messages, and more.
Since this is easier for users, different mobile phone companies entered the money transfer market. More
and more traditional banks have opened their online banking app, but it is not available everywhere because
of different rules and regulations worldwide. Even though this technology has existed since a long time ago
in Europe, online banking started only a couple of years ago. Mobile banking reduces costs for banks like
renting; it eliminates the employee factor during the different work operations and improves customer
experience by giving 24/7 availability services. Mobile phones give access to a full range of financial
services and can be extended by a third party via Application Programming interfaces (He et al., 2017).
APIs are transformer modules that transform incoming and outgoing information in a format that other
applications can understand. If all players use the same translators, it is possible to collaborate easily and
reliably between apps. API can, for instance, create a connection between the digital lending system and
credit reporting agencies, which verify the borrower's credit. Thus, it is interesting to position your financial
institution for continuous growth and innovation by utilizing products that allow a wide range of integration
through an open API (Quinn, 2020). However, APIs are also an open-door P2P transaction and direct
crowdfunding.

4.4 Cryptography

Cryptography is a form of storing and transmitting data so that only for whom is intended can read and
process it ((Douglas Robert Stinson & Paterson, 2019). Fintech has facilitated applications smart contracts
with this technology and combined this with biometrics sensing technologies to improve security (He et al.,
2017). A smart contract can be used to fund a project without passing by a third-party decreasing cost. For
crowdfunding, for instance, smart contracts are programmed to hold all the received funds until a specific
goal is reached; the supporter can transfer their money if the contract is fully funded, and the contract passes
the money directly to the creator. If the project fails to meet the goals, the money automatically returns to
the supporters. And because smart contracts are stored inside a blockchain, they are immutable and
distributed; no one can change the contract, and the contract is to be validated by everyone. A smart contract
can be used for crowdfunding and automatic transaction to issue loans or insurance claims (Lin William
Cong and Zhiguo He, 2019). The ability to verify customers is one mainspring of the financial services
industry. An optimal identification protection model can be offered thanks to built-in cryptographic

8
protection and biometric and blockchain technology. Biometrics is the study of a person's unique biological
and physiological traits to validate their identification. Fingerprints, face, voice, iris, and palm or finger
vein patterns are the five most prevalent biometric identifiers (S. Suryadevara et al., 2011). Banks can use
this biometric technology when you want to open an account or take a loan and make online payments. The
most famous payment companies that use touch ID and facial ID to purchase in stores, apps or online today
are Apple Pay and Google Pay. Each biometric authentication method has their advantage and
disadvantage, but they are all safer than a simple password and very easy to use for the customer.

5. The impact of fintech on traditional Banks

Banks serve various functions in the economy; the two primary ones are maturity transformation and
liquidity provision. They accept short-term deposits, make long-term loans and offer payment and
transaction services. Both tasks rely on the processing of complex data that is verifiable and codifiable and
soft data based on banking relationships (OECD, 2018). As seen in the paragraphs above, Fintech's are
advanced in codifiable information and can process them. Thus, the areas that will be more impacted are
those exposed to information processing. Yet to date, Fintech services are being used by many retail clients
in some markets, particularly in China. They discovered new niches for P2P lending, cross border payment,
crowdfunding, small enterprises or persons with no credit history. The ability of Fintech to impact banks
on services offered by financial institutions comes from cost reduction implied by digital advancement,
new products, which we discussed and unreasonable regulatory burden (OECD, 2020). They provide some
of the same services as traditional banks more efficiently or new services, but they are not going to replace
banks in most of their fundamental functions.
Furthermore, banks are well placed to adopt technological innovations and can do the old things the new
way (Vives, 2017). In this part, we will first analyze the advantages and disadvantages of Fintech's
summarized in table 1 with the information gathered from the two articles "The Fintech Advantage:
Harnessing digital technology, keeping the customer in focus" and "The Future of Banking: From Scale &
Scope Economies to Fintech29". Then we will see how far FinTech can take over from traditional banks.
5.1 Fintech advantages

9
Table 1. Advantages and disadvantages of Fintechs

Advantages Disadvantages
Ability to attract young talent Lack of access to central bank

Focus on activities with the highest return margin Lack of brand recognition

Greater accessibility Limit access to soft information

Superior technology free of legacy High cost of capital

New standard of consumer experience Absence of loyal customer base

More equity funding Lack of management experience and expertise

New entrants exploit the mistrust towards banks that millennials have developed since 2008 and the ease
of the younger generation to use digital services. They have many advantages, as we can see in the table
above; however, traditional banks will catch up on some of these advantages in the long run.

5.2 Rules and regulation

A significant game-changer for Fintech’s are the Rules and regulations. Rules and regulations are major
determinants of the growth of FinTech, likely as necessary as that of technological innovation itself. Rules
are different across the world, but today the regulation environment, in general, is in favour of new Fintech
market entrants; for example, banks are severely restricted in the utilization of customer data compared to
Fintechs and large digital marketplaces. In Europe, the 2015 EU Payment Services Directive regulation
strives to improve competition by granting open access to certain types of client financial data for nonbank
licensed providers. The impact of Fintech on Bank market structure will, thus, depend on how regulation
and government guarantees are applied (Vives, 2017). Fintech’s are changing the way banks work; they are
not replacing them but more creating competitive pressure on the most profitable areas of banks businesses
in which they are concentrated. Most new competitors do not ask for a banking license to avoid compliance
costs, limiting their ability to replace banks.

5.3 Fintech collaboration with traditional Banks

We have seen that Banks and FinTech have different comparative advantages and weaknesses; the best for
customers would be for Fintech and banks to collaborate and bring together the best of the two worlds. For

10
Fintech’s, partnership with traditional banks would be a way to solve their disadvantage improving their
customer base (by selling white-label and co-branded products), addressing the lack of payment-market
experience and potentially reducing their regulatory compliance burden. Deutsche Bank, one of the biggest
financial institutions, defends the idea that a shift in the mindset has to be made from competition to
collaboration. Their 2018 report titled “FinTech 2.0: Creating new opportunities through strategic
alliance” argues that such partnership would give customers the added value of digital services while
sharing the burdens of compliance, risk, and investment cost.
Fintech does not have the potential to replace traditional banks, but the full-scale entry of top digital internet
corporations might cause more significant upheaval.

6. Big Tech impact on traditional Banks

Big Tech refers to major technology companies, such as Apple, Google, Amazon, Facebook, Microsoft
(and so on). The current market value of the five companies listed above is 9.3 trillion in 2021, which is
more than the value of the following 27 most valuable US companies combined (Ovide, 2021). They can
integrate innovation easier than banks since they already have digital platforms to implement these
innovations. In this section, we will examine the advantages of Big Tech using, as an example Ant Financial
in China, an associate of Big Tech Alibaba. Then we'll examine if Big Tech can completely replace
traditional banking.

6.1 Big Tech advantages

Big Tech has all of the advantages of Fintech but none of the disadvantages. Their principal business is
technology and data; however, in contrast to small FinTech's, they have significant scale and a large
customer base. They, like traditional banks, have a well-established name and brand, as well as a lot of
money through retained earnings and easy access to capital. They have the advantage of having personal
information about their consumer preferences, habits and conduct. They can control the online shopping of
many consumers since they offer online shopping services. In 2021 the leading companies in Artificial
intelligence were Amazon Web Services and Google Cloud Platform. Thus, Big Techs have superior data
and have the best tools to analyze this data, understanding customer needs and influencing them (Maguire,
2021). Big Tech may also combine their existing services (such as e-commerce) with traditional banking
products. Giant e-commerce companies have accurate data on their customers' spending habits, so they are
well-positioned to provide loans. In China, Alibaba is more advanced than US BigTech companies in
financial services.

6.2 Alibaba example

11
Ant Financial, part of Alibaba Group, is valued at $150 billion, compared to $108.4 billion for Goldman
Sachs' (data was obtained from Yahoo Finance). Ant's platform business strategy was critical to Alibaba's
growth. Alibaba is e-commerce similar to Amazon; they entered the financial service market by creating
Alipay, which works like PayPal: It processes payment between users. Alipay had over 700 million active
users in 2017 and processed over $8 trillion in transactions (Concepcion, 2019). They used the customer
base from Alipay (later creating Ant Financials) to build multiple interlocking platform businesses in
financial services, including the largest money market fund in the world named Yue Bao. Ant Financial
offers payment, lending, insurance, and investment services. They provide access to many potential
consumers, and financial service providers can't pass up the opportunity to join such an extensive network.
They own and operate an open insurance marketplace with over 80 insurance companies. They have also
democratized asset management and retirement planning by including all 116 of China's mutual funds on
the platform. Given Alibaba's success in the financial sector in China, we should pay particular attention to
the role that American Big Tech firms could play in the financial world in the future. But Ant does not have
a bank license, and in 2017, China established new financial regulations to regulate huge Fintech
companies, making Ant's asset-backed security volume drop by 65%. Showing the importance of
government regulations for FinTech or BigTech banking activities (Yao et al., 2020).
6.3 Big Tech collaboration with Traditional Banks
The chairman of the European networking forum of the Financial Services Club, Chris Skinner, argues in
2019 that Big Tech will engage in various bank-like activities. However, they will never move into full-
service banking, such as deposit accounts. Big Tech, like Fintech, does not desire the compliance and audit
that full banking operations would require. Because Tech companies are subject to less regulation than
banks, they do not wish to obtain a banking license. Furthermore, banks use cloud-based services and a
large amount of social media advertising, both of which are offered by IT giants, and if they were to replace
them, they would lose this income. Banks are more interested in collaborating with Big Tech than Fintech,
but there aren't many Big Tech; thus, only the most important banks will have Big Tech as partners. For
example, the American multinational investment bank and financial services holding company JP Morgan
has already developed an e-Wallet solution for digital corporations like Airbnb, Lyft, and Amazon.

7. Limitations and areas for future research

7.1 Limitation
The paper presents different limitations. The most significant limitation is that it is challenging to address
the impact of competitors on traditional banks in general, as this is heavily influenced by regulations, which
vary by country. A way to overcome this limitation would be approaching the same topic while focusing
on one country. Another limitation is the scarcity of data on the use of these new financial services in the

12
global or European Union contexts (such as surveys on customer satisfaction of new financial services
compared to old ones). The data on Google is primarily from the United States, the United Kingdom, and
China, as these countries are the most advanced in this field. This is because most of the topics approached
in this paper are recent.
7.2 Future Research

Banking's digitalization has opened up many research opportunities. We can research whether Fintech poses

a risk of financial instability, given that financial innovation has been linked to widespread instability in

the past. Moreover, another topic that needs more research is the policy options that government can take

regarding digital currencies: Should central banks issue their digital currency or provide access to reserves

to private digital currency providers? What is the best course of action for central banks regarding digital

currencies?

8. Conclusion
This thesis has dealt with: What is the impact of innovation and new digital competitors on traditional
Banks?

To answer the question, we first observed that the Banking tech revolution is being driven by new client
demand, which has been altered by the emergence of smartphones, online e-commerce, and cyber-security.
Then we saw that artificial intelligence, encryption, distributed computing, and mobile access led to new
financial service options (such as Robot advisors, P2P lending /transaction, Smart contract) that are less
expensive and can reach a more extensive range of individuals. We have investigated how this new
technology works and examined many current trends and their effects on consumer demand and
satisfaction. We have shown that the introduction of new financial services in certain nations is more
advanced than in others. Mobile banking and online platforms will continue to rise in the near future, forcing
traditional banks to catch up or partner with start-ups that provide those services. However, we've seen that
Fintech cannot replace traditional banks because they don't yet have a client base or a brand name, and they
do not ask for a banking license to escape from the banking regulation. We also have asked ourselves if Big
Tech may pose a greater danger to banks because they have the same or better technology as FinTechs and
a stronger brand and client base. To answer this question, we looked at the case of China's Giant Ant
Financial (Alibaba Group), which serves as an example of the potential future involvement of American
Big Tech in the financial world. However, like Fintech, Big Tech might not want to give up their advantage
of having less regulation than banks, so they might not apply for a bank license, limiting their capability to

13
replace traditional banks. On the contrary, to catch up with today's client demand for digital financial
services, traditional banks might better choose to partner with Fintech or Big Tech.

Overall, this paper has benefited academia in several ways. It has uniquely summarized topics by tying
together various articles and examples and identifying limitations and critical questions for future
research.

14
7. Reference

7.1 Journal articles

Ovide, S. (2021, July 29). Big Tech Has Outgrown This Planet. The New York Times.

https://www.nytimes.com/2021/07/29/technology/big-tech-profits.html

Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the Fintech Revolution: Interpreting
the Forces of Innovation, Disruption, and Transformation in Financial Services. Journal of
Management Information Systems, 35(1), 220–265.
https://doi.org/10.1080/07421222.2018.1440766

GateHub. (2020, February 13). History of FinTech. GateHub. https://gatehub.net/blog/history-of-fintech/

Eijkman, Frederik, Jake Kendall, and Ignacio Mas, "Bridges to Cash: the retail end of M-PESA" 2010.

Buchak, G., Matvos, G., Piskorski, T., & Seru, A. (2018). Fintech, Regulatory Arbitrage, and the Rise of
Shadow Banks. Journal of Financial Economics

W. Qianjiao and L. Rong, "The Development of Computational Technology and Its Use in Finance," 2010
Second International Workshop on Education Technology and Computer Science, 2010, pp. 643-646, doi:
10.1109/ETCS.2010.295.

Feynen, E., Frost, J., Gambacorta, L., Natarajan, H., & Saal, M. (2021). Fintech and the digital
transformation of financial services: implications for market structure and public policy (pp. 9–
11).

Quinn, K. (2020, July 15). Digital Lending: What Is Open API & How Does It Help? | MeridianLink.
Www.meridianlink.com. https://www.meridianlink.com/blog/what-is-an-open-api-and-how-does-
it-help-innovate-digital-lending

Douglas Robert Stinson, & Paterson, M. B. (2019). Cryptography : theory and practice. Crc Press.

7.2 Books

15
Lin William Cong, Zhiguo He, Blockchain Disruption and Smart Contracts, The Review of Financial
Studies, Volume 32, Issue 5, May 2019, Pages 1754–1797, https://doi.org/10.1093/rfs/hhz007

7.3 Reports
He, D., & International Monetary Fund. (2017). Fintech and financial services: initial considerations.
International Monetary Fund.

Deutsche Bank. (2018). FinTech 2.0: Creating new opportunities through strategic alliance. Deutsche
Bank.

Deloitte. (2021). The Business Benefit of Using Cryptocurrency. Deloitte United States.
https://www2.deloitte.com/us/en/pages/audit/articles/corporates-using-crypto.html

OECD. (2020, February 26). Digital disruption in financial markets - OECD. Www.oecd.org.
https://www.oecd.org/daf/competition/digital-disruption-in-financial-markets.htm

Battisto et al.,. (2017). Small business credit survey. Federal reserves banks.
https://www.fedsmallbusiness.org/medialibrary/fedsmallbusiness/files/2018/sbcs-employer-firms-
report.pdf

Riemer, K., Hafermalz, E., Roosen, A., Boussand, N., El Aoufi, H., Mo, D., & Kosheliev, A. (2017,

February 28). The Fintech Advantage: Harnessing digital technology, keeping the customer in

focus. Ses.library.usyd.edu.au. https://ses.library.usyd.edu.au/handle/2123/16259

Buchanan, B. (2019). Artificial intelligence in finance. The Alan Turing

Institute. https://doi.org/10.5281/zenodo.2626454

7.3 Conferences
S. Sagiroglu and D. Sinanc, "Big data: A review," 2013 International Conference on Collaboration
Technologies and Systems (CTS), 2013, pp. 42-47, doi: 10.1109/CTS.2013.6567202.

16
Chunyu, L., Hui, X., W. Zhou., Y. Guo., and G. Deng. (2011). Enhancing investment decisions in P2P
lending: An investor composition perspective. Proceedings of the 17th ACM SIGKDD
International Conference on Knowledge Discovery and Data Mining.

S. Suryadevara, R. Naaz, Shweta, S. Kapoor and A. Sharma. (2011). Visual cryptography improvises the
security of tongue as a biometric in banking system," 2nd International Conference on Computer and
Communication Technology

7.4 Articles

Shukla, V. (2021). Top 10 Largest Banks In The World By Total Assets. ValueWalk.
https://www.valuewalk.com/2019/04/top-10-largest-banks-total-assets/

Concepcion, A. (2019, March 4). How Ant Financial Became the Largest Fintech in the World. Applico.

https://www.applicoinc.com/blog/ant-financial-services-platform-largest-fintech-in-world/

Abraham, Facundo and Schmukler, Sergio and Tessada, Jose, Robo-Advisors: Investing Through Machines
(February 26, 2019). World Bank Research and Policy Briefs No. 134881, Available at
SSRN: https://ssrn.com/abstract=3360125

Skinner, C. M. (2019, November 11). Big Banks AND Big Tech (not versus). Chris Skinner’s Blog.

https://thefinanser.com/2019/11/big-banks-and-big-tech-not-versus.html/

Maguire, J. (2021, April 9). Top Performing Artificial Intelligence (AI) Companies of 2022. Datamation.

https://www.datamation.com/artificial-intelligence/ai-companies/#cloud-leaders

World Bank Fintech. (2020). World Bank. https://www.worldbank.org/en/topic/fintech

17
Boot, A. (2017). The Future of Banking: From Scale & Scope Economies to Fintech29. University of

Amsterdam.

Vives, X. (2017). The Impact of Fintech on Banking. IESE Business School.

Yao, K., Leng, H., & Gu, H. (2020, September 13). China issues new rules to tighten control over

financial holding firms. Reuters. https://www.reuters.com/article/us-china-finance-holding-firms-

idCAKBN2640FV

7.5 Others
Goldman Sachs Group, Inc. (The) (GS) Stock Price, Quote, History & News - Yahoo Finance. (24 C.E.,

January). Finance.yahoo.com. https://finance.yahoo.com/quote/GS?p=GS&.tsrc=fin-srch

Statista. (2021b, August 27). Assets under management of robo-advisors in the United States 2017–2025.
https://www.statista.com/forecasts/1259591/robo-advisors-managing-assets-united-states

18
Official statement of original thesis

By signing this statement, I hereby acknowledge the submitted thesis (hereafter mentioned as
“product”), titled:
What is the impact of innovation and new digital competitors on traditional Banks?

to be produced independently by me, without external help.

Wherever I paraphrase or cite literally, a reference to the original source (journal, book, report,
internet, etc.) is given.

By signing this statement, I explicitly declare that I am aware of the fraud sanctions as stated in
the Education and Examination Regulations (EERs) of the SBE.

Place: …………Maastricht

Date: ……………………27/01/2022………

First and last name: ………Sebastian de Biolley

Study programme: …………………Economics and Business Economics

EBT Code: … 2122-EBT0006

ID number: …i6206873……………..

Signature: …………………SEB

19