ABSTRACT
The aim of this chapter is to investigate the impact of innovative financial technology (FinTech) on EU banking performance. The IT revolution brought new factors that influenced the traditional banking market. Banks were forced to compete not only with other players from the banking sector but also with unregulated FinTech companies. Furthermore, we take into account the impact of the COVID pandemic, which forced the banking sector to accelerate of implement innovations and catch up with emerging advanced IT solutions, in case to compete with new FinTech companies. Based on the quantitative analysis on panel data, this chapter confirms that new technology has had an impact on bank performance. Also, the findings confirm the impact of COVID pandemic on traditional banking sector and FinTech sector.
