The International Monetary Fund has published a paper examining the impact of fintechs on traditional financial institutions. The findings show that the presence of fintechs negatively affects profitability, with cooperative banks being most vulnerable. While fintechs enhance efficiency and access to financial services, they also challenge incumbents by reducing market share and profits. At the same time, commercial banks do benefit from higher non-interest income and partnerships with P2P platforms. The paper also reveals that fintechs thrive in competitive, developed financial systems and benefit from strong regulations. The paper’s authors conclude that a broadening of regulatory scopes will create a more level playing field and result in more robust risk management measures and better strategies for incumbents to adapt.