While the Bank of Lithuania is actively encouraging startups, which are creating innovative products, in the environment widely is discussing about an effect for consumers’ new behavior effected by technology based financial sectors’ rapidly transformations. Non-bank financial technology companies “Fintech” join to the Bank offered services and instead of that open a more diverse and innovative financial services market. The rapid evolution of the financial services industry condition is created by technology base by using artificial intelligence, biometric decisions, cloud computing opportunities or blockchain decentralized data saving system, therefore this make financial companies dependent on large technology companies in way to improve their digital consumers experience and to get access to data on client platforms in order to stay competitive. “Fintech” companies, which created platforms of payments, currency exchange, insurance and lending are interested in different customers’ segments and suggest more individualized services. These types of companies’ infiltration to market and the innovations they apply to give influence for traditional financial system participants trough growing competition and that lead to business models changes, which gives not only new attractiveness of financial products, but also new risks. Whereas financial technology innovation breakthrough just starts, so it is important to analyze how changes of financial services have impact to consumers’ behavior, when need to choose traditional and innovative financial services. Therefore, this project purpose – accomplish attractiveness and risk evaluation of innovative financial services, determinant to consumers behavior changes through the transformation of financial services.
Project funding:
Project is funded by EU Structural Funds according to the 2014–2020 Operational Programme for the European Union Funds’ Investments priority “Development of scientific competence of researchers, other researchers, students through practical scientific activities” under Measure No. 09.3.3-LMT-K-712.
Project results:
Based on the analysis of scientific literature and data collected during the project, innovative financial services are attractive to consumers, although they have more risks than benefits. Analyzed and systematized statistics and generalizations have also shown that the development of innovative financial services is largely influenced by technological change, globalization processes and growing investments that change business models while providing more innovative and personalized financial services to consumers. It is noted that the Bank of Lithuania and FinTech centers are contributing to the development of innovative financial services in Lithuania. Based on the results of the analysis, a survey questionnaire was prepared, the target user group – students of higher education institutions of the Republic of Lithuania was identified, and a quantitative survey was organized. The collected data was further processed, the trends highlighted and the research report prepared. Which confirms that the development of innovative financial services is necessary with the cooperation of traditional banks, as it gives consumers more advantages and confidence in the services. These researches and their results will be presented at students’ scientific conferences, and the material provided in the report prepared throughout the practice will be used to write the bachelor’s thesis.
Period of project implementation: 2019-07-02 - 2019-08-31
Project coordinator: Kaunas University of Technology
