FinTech, Artificial Intelligence, Financial Risk and Macro-financial Linkages

Abstract

The purpose of the article. The aim of this paper is to determine the impact of FinTech and Artificial Intelligence (AI) on the relationship between the financial sector and the real economy through the channel of credit. Furthermore, digital technologies, including artificial intelligence, adopted by traditional banks contribute to reshaping the dynamics of financial risk.Methodology. In the first part, a critical analysis of the literature was conducted. Part Two presents a quantitative research including a panel data analysis based on data from European countries concerning traditional credit and FinTech credit.Results of the research. A critical analysis of the literature confirms the significant impact of digital technologies on financial products and financial risk. Moreover, a quantitative research indicates the considerable influence of new technologies on the relationship between the financial sector and the real economy. The results suggest that, in European countries, FinTech credit tends to be a substitute for traditional bank credit for households and that AI supports the development of the FinTech credit market in these countries.