Title: Financial technologies as a driving force for business model transformation in the banking sector

Authors: Yuliya Nichkasova; Halina Shmarlouskaya

Addresses: Department of Finance, Faculty of Economics, L.N. Gumilev Eurasian National University, Astana, Kazakhstan ' Department of International Business, School of International Economic Relations, Belarusian State Economic University, Minsk, Belarus

Abstract: The article examines the latest trends in the development of the banking sector under the influence of financial technologies. Adopting systematic and historical methods of research, the dialectic of two typological structures of financial ties is considered. The interaction of distributed network structures with equal subjects of economic activity and hierarchical institutional structures with state participation is explored. It is revealed that with the development of innovations and financial technologies, the use of distributed network channels is increasing. The conclusion is made that there are potentially two strategic approaches for the development of banks: evolutionary and revolutionary, involving in the first case the transformation of their classical business model into a technology company, and in the second, full absorption by alternative distributed services, based on block technologies and consumer power.

Keywords: financial networking; banking business model; financial technologies; neo-banks; digitalisation; digital analytics platform; analytic era; blockchain technology; transformation; crowdfunding; Kazakhstan.

DOI: 10.1504/IJBG.2020.109120

International Journal of Business and Globalisation, 2020 Vol.25 No.4, pp.419 - 447

Received: 14 Apr 2018
Accepted: 04 May 2019

Published online: 21 Aug 2020 *

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