The Changing Market of Financial Services: the Role of Fintechs and the Consumers' New Expectations

The financial services market has undergone numerous changes resulting from the digital transformation, with emphasis on the consumers’ new expectations and the emergence of new competitors specialized in innovative technologies, so-called fintechs – factors that have been affecting the competitiveness of traditional banks due to their lack of response. Therefore, the objective of this investigation is to identify the new expectations and needs of consumers, how fintechs are disrupting the financial services sector, and in the same way to understand the banks’ stagnation in terms of innovation. This report is carried out as part of an internship at BNP Paribas Personal Finance, a subsidiary in Portugal of the BNP Paribas Group, which specializes in offering credit solutions to all its customers. The internship, as part of the offer team in the marketing area, had as its main objective the management of the B2C product offer according to the needs of the market and consumers. The investigation presents a descriptive-explanatory character, based on a mono-method quantitative study using a non-probabilistic sampling technique. The online questionnaire obtained a total of 207 valid responses and the data were analyzed based on the Qualtrics statistical report. The results showed that the digital transformation resulted in new consumer expectations (digital channels, availability, and speed) and that these same expectations are being more satisfied by fintechs than by banks. It was also possible to conclude that fintechs are disrupting the financial services market through consumer-focused strategies and innovative services with associated technologies, aspects in which banks also fell short. At an academic level, the present investigation contributes to increasing the existing literature on the subject, presenting some implications that arise as possible future investigations. At a business level, the results allow BNPP PF managers to outline the best strategies that meet the current needs of the market and consumers, overcoming the actions of digital competitors and fintechs, allowing them to gain a competitive advantage in the market and remain innovative and relevant.