FIN TECH, BIG TECH, BIG DATA AND GLOBAL BANKING: WHAT DOES THE FUTURE HOLD?

Abstract

In the recent history of banking, the traditional banks are being challenged by intense
competition and scramble for market share. Surprisingly, the competition is not coming from
within the traditional banking circle but from fractional players of Financial Technology (Fin
Tech, Fintech or FinTech) and Big Tech (Big Technology) companies. The advent of Financial
Technology and accessibility of Big Data have made it very easy for these companies to confront
the banks from all fronts of financial service delivery. This trend has to a large extent pushed the
traditional banks to the defensive line where they appear to be losing grips of what was thought
of to be their exclusive domain. The aim of this paper is to analyse the recent trends in Banking
Process Management resulting from the advent of Financial Technology and Big Data. This
becomes necessary due to the encroachment of traditional banking territories by the Fin Tech
and Big Tech companies mostly aided by opportunities provided by Technology and Big Data.
Hence, the need for investigation on how Fin Tech and Big Tech firms can capitalize on
alternative banking channels and big data to pose a big concern to Global Banking.
Consequently, here is a big question of what does the future hold for global banking: An
Opportunity or A Threat? Therefore, this paper analysed the competent areas of Fin Tech and
Big Tech companies, the opportunities and threats resulting from the advent of financial
technology, mining of big data and the “wait-and-see” attitude of most financial regulators.
Further, the paper recommends that globally banks should take up the challenge and get
involved in the alternative channels, utilize the big data at their disposal, engage in shared
services while they retain and digitalise their traditional risk management process in the course
of financial intermediation. Also, regulators are implored to embrace the new development and
come up with rules and regulations that align with the needs of unstoppable 4th industrial
revolution that will change the landscape of financial intermediation. Also, the directions for
future studies in this area have been highlighted.