Emergence of Fintech in the Financial Landscape: Stakes of Fintech and Competition with Traditional Banks

Abstract

The purpose of this paper is to empirically study the stakes of Fintech and competition with traditional banks. Through interviews with 18 specialists working in various fintechs, the empirical results show that most of the fintechs elaborate on their in-house technology available via an online customizable platform, while other functionalities considered as out of the core Fintech activities are developed via external outsourcing. Fintechs face significant systemic challenges, including an evolving regulatory framework that can constrain ambitions and the need for rigorous compliance processes. Protecting personal data against hackers is also vital for these start-ups. The paper further shows that banks are not fundamentally threatened by fintech, given their essential role in the economy, especially credit intermediation. The relationship between the two appears more cooperative than competitive, with growing momentum for banks to acquire fintechs to accelerate digitalization and foster innovation. The scientific novelty lies in framing dual tech as a common operating pattern and showing that banks and fintechs are complementary through partnerships and acquisitions.

Received: 2 April 2025 | Revised: 14 October 2025 | Accepted: 27 October 2025

Conflicts of Interest

The authors declare that they have no conflicts of interest to this work.

Data Availability Statement

The data that support this work are available upon reasonable request to the corresponding author.

Author Contribution Statement

Fateh SACI: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, Resources, Data curation, Writing – original draft, Writing – review & editing, Visualization, Supervision, Project administration. Sajjad M. Jasimuddin: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, Resources, Data curation, Writing – original draft, Writing – review & editing, Visualization, Supervision, Project administration.