RECENT DEVELOPMENTS IN THE FINTECH INDUSTRY
In this article, we review some recent developments in the field of Financial Technology or “FinTech.” We begin with an overview of what FinTech is and why it has become an important growth industry in the financial services area and therefore an important research topic in finance. In the next sect...
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| Format: | Article |
| Language: | English |
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World Scientific Publishing
2020-06-01
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| Series: | Journal of Financial Management, Markets and Institutions |
| Subjects: | |
| Online Access: | http://www.worldscientific.com/doi/epdf/10.1142/S2282717X20400022 |
| _version_ | 1830461982088626176 |
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| author | THOMAS J. CHEMMANUR MICHAEL B. IMERMAN HARSHIT RAJAIYA QIANQIAN YU |
| author_facet | THOMAS J. CHEMMANUR MICHAEL B. IMERMAN HARSHIT RAJAIYA QIANQIAN YU |
| author_sort | THOMAS J. CHEMMANUR |
| collection | DOAJ |
| description | In this article, we review some recent developments in the field of Financial Technology or “FinTech.” We begin with an overview of what FinTech is and why it has become an important growth industry in the financial services area and therefore an important research topic in finance. In the next section, we review some of the academic literature in the FinTech area. In the subsequent section, we characterize the financing of FinTech startups, especially by venture capital firms. In the following section, we characterize innovation by FinTech firms as well as by incumbent financial intermediaries. In the next section, we move on to discuss potential sources of value creation by FinTech start-up firms relative to existing incumbent firms: we conjecture that one source of value creation may arise from FinTech startups being able to provide a superior customer experience relative to incumbent firms in various areas of consumer finance. In the following section, we discuss the regulatory environment facing FinTech firms, in their banking as well as in their financial market activities. In the penultimate section, we analyze the buy-versus-build decision facing firms choosing to enter the FinTech sector and discuss the trade-offs that may drive such decisions in practice. We conclude with some remarks about the future directions that may be taken by the FinTech industry. |
| first_indexed | 2024-12-21T11:38:33Z |
| format | Article |
| id | doaj.art-9d9d40d5093b42268aabaa31c59d3f36 |
| institution | Directory Open Access Journal |
| issn | 2282-717X |
| language | English |
| last_indexed | 2024-12-21T11:38:33Z |
| publishDate | 2020-06-01 |
| publisher | World Scientific Publishing |
| record_format | Article |
| series | Journal of Financial Management, Markets and Institutions |
| spelling | doaj.art-9d9d40d5093b42268aabaa31c59d3f362022-12-21T19:05:23ZengWorld Scientific PublishingJournal of Financial Management, Markets and Institutions2282-717X2020-06-01812040002-12040002-3110.1142/S2282717X2040002210.1142/S2282717X20400022RECENT DEVELOPMENTS IN THE FINTECH INDUSTRYTHOMAS J. CHEMMANUR0MICHAEL B. IMERMAN1HARSHIT RAJAIYA2QIANQIAN YU3Finance Department, Fulton Hall 336, Carroll School of Management, Boston College, Chestnut Hill, MA 02467, USADrucker School of Management, Claremont Graduate University, Claremont, CA 91711, USATelfer School of Management, University of Ottawa, 55 Laurier Avenue East, Ottawa, Ontario, K1N 6N5, CanadaPerella Department of Finance, College of Business, Lehigh University, Bethlehem, PA 18015, USAIn this article, we review some recent developments in the field of Financial Technology or “FinTech.” We begin with an overview of what FinTech is and why it has become an important growth industry in the financial services area and therefore an important research topic in finance. In the next section, we review some of the academic literature in the FinTech area. In the subsequent section, we characterize the financing of FinTech startups, especially by venture capital firms. In the following section, we characterize innovation by FinTech firms as well as by incumbent financial intermediaries. In the next section, we move on to discuss potential sources of value creation by FinTech start-up firms relative to existing incumbent firms: we conjecture that one source of value creation may arise from FinTech startups being able to provide a superior customer experience relative to incumbent firms in various areas of consumer finance. In the following section, we discuss the regulatory environment facing FinTech firms, in their banking as well as in their financial market activities. In the penultimate section, we analyze the buy-versus-build decision facing firms choosing to enter the FinTech sector and discuss the trade-offs that may drive such decisions in practice. We conclude with some remarks about the future directions that may be taken by the FinTech industry.http://www.worldscientific.com/doi/epdf/10.1142/S2282717X20400022fintechfinancial innovationbanking the unbankedventure capital finance |
| spellingShingle | THOMAS J. CHEMMANUR MICHAEL B. IMERMAN HARSHIT RAJAIYA QIANQIAN YU RECENT DEVELOPMENTS IN THE FINTECH INDUSTRY Journal of Financial Management, Markets and Institutions fintech financial innovation banking the unbanked venture capital finance |
| title | RECENT DEVELOPMENTS IN THE FINTECH INDUSTRY |
| title_full | RECENT DEVELOPMENTS IN THE FINTECH INDUSTRY |
| title_fullStr | RECENT DEVELOPMENTS IN THE FINTECH INDUSTRY |
| title_full_unstemmed | RECENT DEVELOPMENTS IN THE FINTECH INDUSTRY |
| title_short | RECENT DEVELOPMENTS IN THE FINTECH INDUSTRY |
| title_sort | recent developments in the fintech industry |
| topic | fintech financial innovation banking the unbanked venture capital finance |
| url | http://www.worldscientific.com/doi/epdf/10.1142/S2282717X20400022 |
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