ABSTRACT

The traditional banking system is being disrupted and challenged by the fast pace of financial technology ('Fintech') development. The established areas of Fintech (such as payment and lending, which are core services of traditional banking) are growing.
One of the rapidly expanding innovative technologies in the financial industry is Fintech lending, which includes all loans facilitated by online lending platforms. It has the potential to transform conventional lending models with a platform-based technology-driven model. Moreover, alternative lending platforms (leveraging peer-to-peer) has increased dramatically, and for some market segments, such as households and businesses, it has become an important source of alternative finance.
Meanwhile, emerging technologies are changing customers' perceptions of traditional bank services, which are becoming outdated as the world becomes more digital. Conventional banking practices, such as queueing in a banking hall and providing massive paper documents for getting loans, are disappearing these days as customers turn to mobile banking in the convenience of their own homes.
This study aims to comprehend the Fintech lending services and how banks are transforming platform-oriented lending models by integrating with new financial technologies. Furthermore, the research will also figure out the challenges and opportunities in the implementation by analyzing a case study based on the primary data focused on expert knowledge and practice of First Commercial Bank in Taiwan and the secondary data collected.
The research findings enable us to understand the critical business elements of online lending in banks and how they play an essential role in building an efficient business model. In response to the digitalization, the incumbent banks need to develop online lending services in order to meet the customers' demands and to keep the competitive advantages. The most successful in the future will be banks that have modified their business models, leveraging the opportunities provided by Fintech.

Keywords: Fintech lending, online lending business model

ABSTRACT

The traditional banking system is being disrupted and challenged by the fast pace of financial technology ('Fintech') development. The established areas of Fintech (such as payment and lending, which are core services of traditional banking) are growing.
One of the rapidly expanding innovative technologies in the financial industry is Fintech lending, which includes all loans facilitated by online lending platforms. It has the potential to transform conventional lending models with a platform-based technology-driven model. Moreover, alternative lending platforms (leveraging peer-to-peer) has increased dramatically, and for some market segments, such as households and businesses, it has become an important source of alternative finance.
Meanwhile, emerging technologies are changing customers' perceptions of traditional bank services, which are becoming outdated as the world becomes more digital. Conventional banking practices, such as queueing in a banking hall and providing massive paper documents for getting loans, are disappearing these days as customers turn to mobile banking in the convenience of their own homes.
This study aims to comprehend the Fintech lending services and how banks are transforming platform-oriented lending models by integrating with new financial technologies. Furthermore, the research will also figure out the challenges and opportunities in the implementation by analyzing a case study based on the primary data focused on expert knowledge and practice of First Commercial Bank in Taiwan and the secondary data collected.
The research findings enable us to understand the critical business elements of online lending in banks and how they play an essential role in building an efficient business model. In response to the digitalization, the incumbent banks need to develop online lending services in order to meet the customers' demands and to keep the competitive advantages. The most successful in the future will be banks that have modified their business models, leveraging the opportunities provided by Fintech.

Keywords: Fintech lending, online lending business model

REFERENCES

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2. Websites
https://www.firstbank.com.tw/servlet/fbweb/en_US/home
https://www.reuters.com/article/us-taiwan-banks-digital/taiwan
https://www.fsc.gov.tw/en/
https://www.taiwannews.com.tw/en/news/
https://www.finextra.com/newsarticle/taiwan-issues-three-digital-banking-licences
https://www.taipeitimes.com/News/biz/