Systemizing the impact of fintechs on the efficiency and inclusive growth of banks' services

Łasak, Piotr; Gancarczyk, Marta

doi:10.4324/9781003095354-7

Cited by 6 publications

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“…Financial technology significantly changes the existing business models of banks, other financial and non-financial institutions, and also SMEs. Through digital transformations, all these entities became beneficiaries -banks, fintech start-up companies, SMEs, and their customers (Łasak & Gancarczyk, 2021a). Lu et al (2021) point out three aspects of financial processes related to application of financial technologies in business in developing countries.…”

Section: The Role Of Financial Technology In Fostering Sme Financementioning

confidence: 99%

“…The literature on financial technologies and fintech-based enterprises highlights the growing role of financial technology in financing SMEs and its impact on the inclusive growth of these enterprises (Łasak & Gancarczyk, 2021a). The importance of financial technology comes not only from the fact that it enables greater efficiency of traditional financial institutions but also from their ability to modify traditional financial services and create new services.…”

Section: Introductionmentioning

confidence: 99%

“…The importance of financial technology comes not only from the fact that it enables greater efficiency of traditional financial institutions but also from their ability to modify traditional financial services and create new services. In consequence, traditional relations of SMEs with banks are replaced by non-bank financing providers or even networks of such providers (unique financial ecosystems are created) (Blancher et al, 2019;Łasak & Gancarczyk, 2021a). Very often, fintech enterprises are integrators of such ecosystems, and their activity is more important for financing SMEs than incumbent banks and other traditional financial institutions.…”

Section: Introductionmentioning

confidence: 99%

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The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises

Łasak¹

2022

JEMI

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PURPOSE: The traditional sources of financing (bank loans) cannot be treated as an essential source of financing for SMEs in developing countries. For this reason, this group of entities uses many alternative sources, from bootstrapping to microfinance and crowdfunding. During the last decade, a significant contribution in this area has been financial technology. The purpose of this study is threefold: 1) to present the role of financial technologies in financing SMEs, 2) to examine the role of entities based on financial technology in financing SMEs in developing countries, and 3) to consider other non-bank aspects of financing SMEs, leading to the improvement of the financial situation of these entities. The in-depth analysis of these entrepreneurial finance practices will be developed in the following papers presented in this Issue. METHODOLOGY: This study employs a theoretical approach based on a narrative literature review. The primary attention is focused on applying financial technology as a stimulant for the finance of SMEs in developing countries. FINDINGS: As a consequence of the financing gap for SMEs within the traditional financial system, these entities use non-bank financing based on financial technology. The research confirms that financial technology plays a crucial role in fostering the financial situation of SMEs in developing countries and providing greater financial inclusion for these entities. Both, financial technology and enterprises based on this technology contribute significantly to the improvement of efficiency of financing SMEs in emerging markets. They also provide a broader range of services, than were offered by the traditional financial sector. Regarding the other aspects of SME finance, it is essential to implement such ways of financing like microfinance services and crowdfunding. Such funding mechanisms, together with the budget process and the compliance under the conditions of e-tax systems, are important determinants of current entrepreneurial finance. IMPLICATIONS: The paper describes the financing of SMEs in developing countries. The in-depth picture of the SME’s financial situation, focusing on the technological development in this area, provides essential insight into this still poorly explored area. It also offers important premises for shaping the post-pandemic policy to support their further growth. ORIGINALITY/VALUE: Despite growing theoretical and empirical literature about entrepreneurship finance, this study aims to contribute to the role of financial technology in this area. The impact of financial technologies and the role of fintech-based entities on SME activity in developing countries are still poorly researched. Moreover, the research provides a brief overview of other SME funding sources and their determinants in this group of countries.

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Section: The Role Of Financial Technology In Fostering Sme Financementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises

Łasak¹

2022

JEMI

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“…Consequently, it embraces the patterns of activities performed by relevant entities, collaborative arrangements, and power relations among these entities, public regulation, and the coordination of spatial distribution of economic activity, all of which produce differing socio-economic effects in various spatial contexts (Gomber et al, 2017;Williamson, 2000). These governance patterns are strongly affected by technological factors that underlie the composition of activities in socio-economic systems and entities executing these activities (Williamson, 2005;Łasak & Gancarczyk, 2021). The digital transformation in financial services is one of the most profound both in terms of structural changes and the value of an investment in fintech (Coe et al, 2014;Kleibert, 2020).…”

Section: Literature Review and Theory Development Fintech Transformat...mentioning

confidence: 99%

The fintech transformation of banking: Governance dynamics and socio-economic outcomes in spatial contexts

Gancarczyk¹,

Łasak²,

Gancarczyk³

2022

EBER

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The objective of the article is to identify and systemize the governance dynamics and related socioeconomic consequences of the fintech transformation in banking, while acknowledging spatial contexts. Research Design & Methods:The research framework comprised Global Production Networks (GPN), Global Value Chain (GVC), and co-evolutionary approaches to guide a systematic literature review in the Scopus, Web of Science, and Taylor & Francis databases for 2016-2021. The final sample comprised 76 sources that became the basis for selective coding and the synthesis of the results. Findings: Fintech impacted banking governance by creating a dual and interrelated system of global financial networks and a 'mosaic' of territorial financial ecologies and ecosystems, where incumbent banks held an important but not exclusive position. The fintech-enhanced governance transformations had both positive socioeconomic effects (improved efficiency, expanded range of services, and inclusion of unbanked or under-served customers) and negative effects (over-indebtedness, surveillance, and exclusion of some customers). Wider socio-economic consequences refered to sustainable development and changes in economic and social behaviour. Implications & Recommendations:A research framework and agenda for future studies related to the dynamics of fintech-driven governance in banking have been elaborated. The article derives the immediate and wider economic and social consequences of fintech-driven transformations. The results can also be applied in public policies oriented towards sustainable socio-economic development. Contribution & Value Added:The study provides theoretical and policy-relevant contributions. Firstly, it broadens the research on the transformation of banking governance in the spatial context. Secondly, it contributes theoretically by proposing a research framework of GVC and GPN governance augmented by a co-evolutionary perspective. Thirdly, the article informs policy that seeks financial inclusion for cohesive and sustainable development.

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“…Fintech increase efficiency and availability of existing and launch of new financial products (Hill, 2018;Livesey, 2018;Nicoletti et al, 2017;Sabatini, Cucculelli, & Gregori, 2022;Scardovi, 2017). However, negative effects are also reported, such as over-indebtedness of risky customers, Fintech surveillance, and exclusion of some customers due to computer illiteracy (Kong & Loubere, 2021;Łasak & Gancarczyk, 2021;Brooks, 2021). The economic and social outcomes of the emerging FEs transformed by Fintech have not been fully understood and systemized (Langley & Leyshon, 2021;Wójcik, 2021b).…”

Section: Conceptual Foundationsmentioning

confidence: 99%

Untitled

2022

JEMI

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The JOURNAL OF ENTREPRENEURSHIP, MANAGEMENT AND INNOVATION is an interdisciplinary, double blind-reviewed journal, emphasizing theoretical and empirical articles in entrepreneurship, management, innovation and related fields. The journal is published both in printed form and on-line at www.jemi.edu.pl. THE ENTREPRENEURSHIP AREA OF THE JOURNALThe entrepreneurship area of the journal covers the three major topics: 1) venture creation and small business, 2) the impact of entrepreneurship on economic growth including local and regional development, and 3) entrepreneurial attitudes and motives. We invite original papers of theoretical and empirical nature, rooted in the disciplines of economics, management, sociology, political science, and psychology. The interdisciplinary research is encouraged to assure a comprehensive approach to the topics discussed and to advance both theory and practice. THE MANAGEMENT AREA OF THE JOURNALManagement, as a thematic scope of the journal, focuses on theoretical and empirical considerations of various areas, such as: strategic management, operation or production management, human resource management, information and management, contemporary management problems, new methods and management tools, new forms of organization and management, new threats in management, or new challenges in the organization's environment. THE INNOVATION AREA OF THE JOURNALThe innovation area of the Journal's focus will emphasize a broad range of topics and approaches, including (but not limited to): 1) role of private and public sector in development and diffusion of innovations, 2) product, process and business model innovations, 3) profiles of innovative products, structures and processes, aimed at improving management practice and providing inspiration for entrepreneurs, 4) comparative analyses of national, regional policy or sector issues, such as R&D trends, patents, citations etc., 5) theoretical work on economic, organizational and scientific aspects of innovation, encouraging the search for inspirations from various disciplines, including natural sciences, arts and humanities. THE ENTREPRENEURIAL FINANCE AREA OF THE JOURNALThe entrepreneur or entrepreneurial firm, the institutions providing finance to the entrepreneurs, and the different types of financial sources used by the entrepreneurial firms or investors. Among the areas of our special interests might be enumerated: accounting and corporate finance, financial market as a background for SME development, entrepreneurial finance, regulatory and supervisory aspects related to corporate finance.

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Systemizing the impact of fintechs on the efficiency and inclusive growth of banks' services

Cited by 6 publications

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The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises

The role of financial technology and entrepreneurial finance practices in funding small and medium-sized enterprises

The fintech transformation of banking: Governance dynamics and socio-economic outcomes in spatial contexts

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