New competitors in banking services

In this paper the authors investigator the evolution of new competition in banking. As a consequence of the deregulation of this market and the opportunities the new technologies offer, new non-banking competitors — companies whose main activity is not finance — have decided to venture into a promising sector that is unknown to them. This conceptual paper aims to present an overview of the competitive situation that has arisen from the entrance of new participants in the banking industry, and to describe the different strategies that banks may use in order to face this new situation. Data were sourced from a literature review and new entrants' websites in order to ascertain their origin, their promoters and partners as well as their actual situation.