External fintech risks of outsourcing bank functions

The article discusses the risks arising in the banking sector when a bank outsources certain financial functions to a third-party partner on a permanent basis. The digital economy opens up a new field of professional high-tech performers of selected functions on an outsourcing basis, which are attractive for managing the operating costs and flexible competition of commercial banks. The latest technological solutions interesting for banks are offered on the market mainly by new high-tech digital financial companies, which are called fintech. Their peculiarity and competitive advantage in their sector is a «lightweight business model» which is fraught with risks of financial instability, which, in turn, are adsorbed by banks working with fintech on outsourcing. The article analyzes the threats of such risks on the example of the developed market of very large fintechs in the United States. The authors offer their recommendations on the reduction of these specific risks.