JEFMS Journal

ABSTRACT:

This paper discusses and analyzes how Information Technologies destabilize the banking sector and induce irrevocable changes in the sector that lead to new entrants, innovation and, above all, disintermediation. Our objective is to analyze the relationship between the financial market, IT and financial intermediation, in order to detect the impact of the automation of the financial market on the traditional intermediation activity of banks. Based on a descriptive analysis of the Tunisian banking sector, and over the 1998-2018 periods, we have shown that the disintermediation of Tunisian banks is the consequence of the automation of the financial market. The more the financial market invests in IT, the more banks are Disinter mediated. In Tunisia, IT is a driving force behind the disintermediation of banks. In any case, recent developments confirm the fact that rather than asserting that traditional banking is dead, the above analysis advocates a renewal of the banking economy. The role of banks is not about to diminish. The era of direct finance and new technologies has not so much created disintermediation but rather a new sharing of roles in the financial sphere.

Keywords:

Information technology, Commercial banks, Financial intermediation, Disintermediation, Financial market, Automation.
JEL Classification Codes: F61, G21, G23, O33.

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