In the longer run, the entry of fintechs could induce a change of business models also in the incumbent institutions. Who will eventually provide the new services? Synergies between different services would seem to be the key question. If there are no synergies between two services, then they will not necessarily be offered by the same institution.
This could even have implications for bank structures. A separate question is: How many companies which are providing payments services alone, will be profitable. 3. Regulating the digitalizing financial industry 3.1 Regulation as a catalyst to reaping the benefits The changing landscape in the financial industry raises the question how the new digitalized financial services should be regulated.