Impact of fintech on systemic risk in banking: literature review

Abstract

The finance industry faces disruption when banks, as traditional incumbents, have to deal with growing competition from FinTech and BigTech companies. FinTech institutions are connected to traditional financial institutions like banks via various channels, constituting themselves as a part of the financial market and systemic risk with the possibility of spillover and risk contagion effects. The goal is to provide a literature review to detect theoretical perspectives, topics, and common issues in the connection between FinTech and systemic risk. A systematic approach to literature review was chosen, resulting in the analysis of 20 articles from the Web of Science database. Results confirm the positive connection between financial technology and systemic risk and call for future research.