The Technological Disruption in Banking Sector - New Efforts and Challenges in the Financial Business Models

The disruptive technologies radically transform business models and create new innovative products and services. The chapter, focused on the technological disruption in banks, considers: • the assessment of technology impact, including the spread of artificial intelligence, at the level of business models and the relevance for regulators and supervisors, interested in granting a safe and sound banking system; • the main risks associated with technology considered in banking business models;• future perspectives for new strategies and business models with a transition from linear vertically-integrated models to non-linear adaptive models. The chapter outlines the state of the art in the banking services and the organizational responses, highlighting the needs not yet solved in banks' operations, but projected towards the near future, already present. The Appendix offers a framework of the banks’ approach to technology through the answers given by the sample of European banks to questions about technology in EBA’s RAQ.