| Abstract [eng] |
The rapid development of financial technologies is leading to changes in the financial industry, which include the emergence of new competitors, business models and the provision of fully digital financial services. After adapting new technologies, e.g. artificial intelligence, blockchain, big data, fintech companies have started offering new financial services such as digital payments, peer-to-peer lending, robo-advice, etc. The development of financial technology offers advantages, but also risks. Fintech can drive efficiency in the financial industry, offer better and more accurate products and services, and enhance financial inclusion. However, technology can also pose risks if its application undermines competition, market confidence, intermediation and financial stability. That is why examining whether financial technology has an impact on the financial stability of the banking sector is important. The object of the research is the relationship between financial technologies and the financial stability of the Lithuanian banking sector. The purpose of the study is to assess the impact of financial technologies on the financial stability of the Lithuanian banking sector. Tasks: to reveal the relevance of assessing the impact of financial technologies on financial stability; to analyze the theoretical solutions for assessing the impact of financial technologies on financial stability; to prepare a research methodology and to conduct a study. The first part of the work reveals the relevance of the assessment of the impact of financial technologies on financial stability and the need for research. The second part of the paper analyzes the theoretical solutions for assessing the impact of financial technologies on financial stability. The third part of the work prepares the research methodology. The fourth part of the work assesses the impact of financial technologies on the financial stability of the Lithuanian banking sector. After conducting a correlational analysis, it was found that there is a negative correlation between financial technology indicators and the financial stability of the Lithuanian banking sector. After performing the regression analysis, it was found that financial technologies have an impact on the financial stability of the Lithuanian banking sector, but the impact of not all analyzed variables is significant. It was established that as the financial technology indicators increase, the financial stability indicators of the Lithuanian banking sector decrease. Such significance can be explained by the fact that the development of financial technologies leads to the growth of competition for traditional banks. The development and popularity of neo-banks and financial technology-based services may lead to the loss of existing and potential new bank customers, which ultimately has a negative impact on financial stability indicators. So, financial technologies in Q4 2015 – Q3 2022 period has a negative impact on the financial stability of the Lithuanian banking sector. |
