Risk Management

, Volume 21, Issue 1, pp 1–18 | Cite as

Relationship banking and information technology: the role of artificial intelligence and FinTech

  • Marko Jakšič
  • Matej MarinčEmail author
Original Article


Banks have no time for complacency. They need to re-evaluate their competitive advantages in light of profound changes driven by advances in information technology (IT) and competitive pressure from FinTech companies. This article emphasizes that banks should not abolish relationship banking, which nurtures close contact with bank customers. A long-term orientation of relationship banking streamlines incentives and supports the long-term needs of bank customers. However, banks might be lured into transaction banking due to the presence of IT-driven economies of scale and competition from FinTech start-ups and IT companies. In this light, the article evaluates the role of distances, artificial intelligence, and behavioral biases. Implications for stability in banking are explored. We argue that relationship banking can overcome its drawbacks, but it needs to adjust to the new reality in order to survive.


The future of banking Relationship banking Information technology Artificial intelligence FinTech 

JEL Classification

G20 G21 L86 O33 



The authors would like to thank to the anonymous referee, the editor Igor Lončarski, Arnoud Boot, Iftekhar Hasan, Robin Lumsdaine, Vasja Rant, Lev Ratnovski, and Razvan Vlahu for their valuable comments and suggestions.


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© Macmillan Publishers Ltd., part of Springer Nature 2018

Authors and Affiliations

  1. 1.Faculty of EconomicsUniversity of LjubljanaLjubljanaSlovenia

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