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http://dx.doi.org/10.5392/JKCA.2022.22.09.271

An Analysis of the Effects of Fintech on the Banking and Savings Banking Industries in Korea  

Lee, Junhee (영남대학교 무역학부)
Song, Joonhyuk (한국외국어대학교 경제학부)
Publication Information
The Journal of the Korea Contents Association / v.22, no.9, 2022 , pp. 271-282 More about this Journal
Abstract
The paper analyzes the effects of the emergence of Fintech on the banking and savings banking industries in Korea. From the analysis, we find that net interest margin decreases and credit supply increases with the advent of Fintech in the banking industry. Similarly, in the savings banking industry, a profitability index decreases. This is interpreted as the result of reduced monopoly power and increased efficiency in the industries, inducing an increase in overall consumer benefits. Individual financial institutions may, however, experience difficulties such as reduced profitability and increased Fintech investment costs.
Keywords
Fintech; Banking; Savings Banking; Profitability; Credit;
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