6. Conclusion

The final chapter of the monograph, ‘Adapting to Change: ESG and Alternative Finance in Shaping the Bank-Firm Relationship’, provides an in-depth analysis of the progressive shift in the relationship between banks and firms, moving from a foundation of personal trust to one characterized by strategic, value-driven partnerships. It chronicles the post-1995 trend towards prioritizing economic efficiency and judicial context in credit dealings and highlights the significant changes from 2010 to 2023, where ethical banking, reliability, and stability have become the cornerstones of banking practices. The role of technological advancements, especially FinTech Credit, is examined for its impact on lowering default risks, suggesting an inverse relationship that underscores the need for banks to leverage technology in credit evaluations. Environmental and governance aspects of ESG criteria are also analysed for their growing influence on financial stability and creditworthiness, with a notable emphasis on the European Banking Authority's guidelines. The monograph further assesses how engagement with FinTech Credit influences lending rates over time, advocating for dynamic risk assessment models that can adapt to these evolving factors. Ultimately, the study advises banks to modify their credit assessment processes to integrate a firm's technological and ESG engagements, reflecting the long-term implications for the bank-firm relationship amidst the rise of alternative finance and sustainability considerations.