This paper develops a dynamic contracting model of relationship banking to study how Fintech innovations affect the creation and dissemination of borrower-specic soft information. We treat soft information as a relation-specific intangible asset that enhances firm productivity but is costly for banks to generate. Because information may leak to outside banks, insider banks cannot fully appropriate returns from monitoring, which slows information accumulation and distorts lending relationships. Embedding this mechanism into a macro framework, we show how advances in information processing and sharing reshape bank competition, lending rates, and aggregate outcomes.