Development of Fintech as a Challenge for Traditional Banking

Questions about objective necessity of financial mediators for commercial banks began to be actively discussed in the middle of the 20th century. In recent years discussions about the role and functions of banks and about their possible disappearance become active. The main factor determining changes in financial system in recent years has been the development of information and financial technologies, which include payment services, online lending, crowd funding, online banks, data aggregators, as well as technologies for developing banking infrastructure, financial security, personal finance management, tools for small businesses, etc. It turned out that not only banks, but also non-financial organizations can provide these services, for example, social networks, mobile network operators. The purpose of the article is to assess possibilities for commercial banks development in the context of active implementation of financial technologies. The objectives are to characterize benefits and risks associated with the use of fintech for commercial banks, determine directions and stages of their implementation by banks (from providing separate online services to creating ecosystems), identify possibilities for banking business under increasing competitiveness with fintech companies. The conclusion is that the creation of own ecosystems will become a priority direction for the work of the largest banks under increasing competitiveness. Such conclusion is based on the study of statistical data and the results of the survey. The most likely scenario for traditional banking development will be cooperation with non-financial organizations appearing on banking market. This can increase efficiency of the entire financial system and all the economy.