How Valuable is FinTech Innovation?

Chen, Mark A.; Wu, Qinxi; Yang, Baozhong

doi:10.2139/ssrn.3106892

Cited by 54 publications

(74 citation statements)

References 25 publications

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“…While documenting China's fintech development process is important, it is equally useful to examine the likely changes it brought about to the economy. The list of academic studies in this area is still relatively short but growing (Chen et al 2019). And there are already some fascinate evidences of the effects on financial inclusion, economic efficiency, innovation and entrepreneurship.…”

Section: Economic Impacts Of Fintech Development A) Positive Impact Omentioning

confidence: 99%

Understanding China’s fintech sector: development, impacts and risks

Hua

Huang

2020

The European Journal of Finance

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Financial technology (fintech) is rapidly transforming the economy as well as the financial landscape in China. This paper attempts to shed light on its contributing factors, current state, economic impacts and potential risks. We identify three key drivers for China's fintech development, namely shortage of supply in formal financial market, strong government support for promoting financial inclusion through digital technology, and more "tolerant" regulatory environment. The greatest value of the Chinese fintech sector is promotion of financial inclusion, enabling a vast number of small-and medium-sized enterprises (SMEs) and low-income households to access to financial services. Existing studies unveil some strong evidences of fintech development improving efficiency, increasing employment and supporting entrepreneurship. In the meantime, there are also serious challenges facing this sector, such as regulatory uncertainties, illegal transactions, data abuse, etc. We conclude the paper by presenting some key takeaways, including several lessons for financial regulation.

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Section: Economic Impacts Of Fintech Development A) Positive Impact Omentioning

confidence: 99%

Understanding China’s fintech sector: development, impacts and risks

Hua

Huang

2020

The European Journal of Finance

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“…While previously technology was used by financial firms to help deliver services, now such services are also provided by start-ups and established firms in the technology sector (see also Brummer and Yadav, 2018). In the USA for example, 58 per cent of FinTech patents come from outside of the financial services industry (Chen et al, 2019). The catalysts for FinTech development since 2008 can be found on both fin and tech sides.…”

Section: Definitions Roots and Taxonomies Of Fintechmentioning

confidence: 99%

“…Recognizing the distinctiveness of the finance-technology nexus since around 2008 leads to narrower definitions. Chen et al (2019) define FinTech as 'the set of recently developed digital computing technologies that have been applied -or that will likely be applied in the future -to financial services' (p. 2066). For Schueffel (2016) it is 'a new financial industry that applies technology to improve financial activities' (p. 45).…”

Section: Definitions Roots and Taxonomies Of Fintechmentioning

confidence: 99%

“…FinTech functions cover the whole spectrum of financial needs: payments, savings, borrowing, risk management, and advisory (IMF, 2019;Gimpel et al, 2018;Buchanan and Cao, 2018). Key technologies include: AI, big data, machine learning, blockchain (including cryptoassets and cryptocurrencies), and Internet of Things (IoT) (Sangwan et al, 2019;Chen et al, 2019). Key institutions are financial services firms, technology firms, and FinTech firms (Gomber et al, 2017).…”

Section: Definitions Roots and Taxonomies Of Fintechmentioning

confidence: 99%

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Financial Geography I: Exploring FinTech – Maps and concepts

Wójcik

2020

Progress in Human Geography

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In the first of two reports on FinTech, I review definitions, roots and taxonomies of FinTech, survey studies charting FinTech development, and theoretical approaches to FinTech. Emerging empirical research shows a dynamic growth of FinTech characterized by heterogeneity and diversity. Ecosystems, financial ecologies, and digital platform economies are the most popular approaches to FinTech, and I argue that they can be used fruitfully in combination with more established concepts, such as networks and agglomeration. Overall, I show that FinTech research is in a state of flux concerning concepts and empirics, and highlight the potential of geography to tame the beast.

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“…Another interesting question in the FinTech research area is to compare and contrast the innovation activities of incumbents (traditional intermediaries) versus new entrants (FinTech startups). Chen et al (2019) show that most of the valuable patents in the¯nancial sector have been¯led in the IoT, robo-advising, and blockchain sectors. They also¯nd that majority of patents are¯led by¯rms outside thē nancial sectors, i.e.…”

Section: Innovation Activities By Fintech Firmsmentioning

confidence: 99%

Recent Developments in the Fintech Industry

Chemmanur

Imerman

Rajaiya

et al. 2020

J. Fin. Mngt. Mar. Inst.

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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.

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How Valuable is FinTech Innovation?

Cited by 54 publications

References 25 publications

Understanding China’s fintech sector: development, impacts and risks

Understanding China’s fintech sector: development, impacts and risks

Financial Geography I: Exploring FinTech – Maps and concepts

Recent Developments in the Fintech Industry

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