Is Fintech Eating The Bank S Lunch

Author : Sami Ben Naceur,Bertrand Candelon,Mr. Selim A Elekdag,Drilona Emrullahu
Publisher : International Monetary Fund
Page : 64 pages
File Size : 51,5 Mb
Release : 2023-11-17
Category : Business & Economics
ISBN : 9798400258107

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Is FinTech Eating the Bank's Lunch? by Sami Ben Naceur,Bertrand Candelon,Mr. Selim A Elekdag,Drilona Emrullahu Pdf

This paper examines how the growing presence of FinTech firms affects the performance of traditional financial institutions. The findings point to a negative impact on profitability, primarily due to a reduction in interest income and a rise in operational costs. Although established financial institutions have tried to diversify their revenue streams, these efforts have proven inadequate to offset the losses associated with increased competition from FinTech firms. Our study also reveals that various FinTech business models, such as Peer-to-Peer (P2P) lending and Balance Sheet lending, have varying effects on financial institutions. Cooperative banks experience more significant profit deterioration under both models, whereas (larger) commercial banks appear to benefit from partnerships with P2P platforms, as evidenced by an increase in non-interest income. Furthermore, the findings suggest that FinTech presence has a disproportionately larger adverse effect on banks in countries with more competitive, profitable, and developed financial systems. Interestingly, however, traditional financial institutions in countries with stronger regulatory frameworks appear to benefit from the expanding influence of FinTech firms.

Author : Mr. Selim A Elekdag,Drilona Emrullahu,Sami Ben Naceur
Publisher : International Monetary Fund
Page : 46 pages
File Size : 51,5 Mb
Release : 2024-01-26
Category : Business & Economics
ISBN : 9798400265167

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Does FinTech Increase Bank Risk Taking? by Mr. Selim A Elekdag,Drilona Emrullahu,Sami Ben Naceur Pdf

Motivated by its rapid growth, this paper investigates how FinTech activities influence risk taking by financial intermediaries (FIs). In this context, this paper revisits an ongoing debate on the impact of competition on financial stability: on one side, it is argued that greater competition encourages greater risk taking (competition-fragility hypothesis), while the other side of the debate asserts that more competition can increase financial stability (competition-stability hypothesis). Using a curated databased covering over 10,000 FIs and global FinTech activities, we find a robust relationship whereby greater FinTech presence is associated with heightened risk taking by FIs, offering support for the competition-fragility hypothesis. However, the inclusion of bank-, industry-, and country-specific characteristics can alter this relationship. Importantly, there is suggestive evidence indicating that in certain cases, greater FinTech presence may be associated with less FI risk taking amid stronger domestic institutions. Notwithstanding the relevance for policy, this paper presents a novel framework that may help reconcile some of the conflicting results in the literature which have found supportive evidence for each of the two competing hypotheses.

Author : Albastaki, Yousif Abdullatif,Razzaque, Anjum,Sarea, Adel M.
Publisher : IGI Global
Page : 367 pages
File Size : 52,7 Mb
Release : 2020-08-28
Category : Business & Economics
ISBN : 9781799832591

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Innovative Strategies for Implementing FinTech in Banking by Albastaki, Yousif Abdullatif,Razzaque, Anjum,Sarea, Adel M. Pdf

FinTech is encouraging various new practices, such as diminishing the use of cash in different countries, increasing rate of mobile payments, and introducing new algorithms for high-frequency trading across national boundaries. It is paving the way for new technologies emerging in the information technology scene that allow financial service firms to automate existing business processes and offer new products, including crowdfunding or peer-to-peer insurance. These new products cater to hybrid client interaction and customer self-services, changing the ecosystem by increasing outsourcing for focused specialization by resizing and leading to new ecosystems and new regulations for encouraging FinTech. However, such new ecosystems are also accompanied by new challenges. Innovative Strategies for Implementing FinTech in Banking provides emerging research exploring the theoretical and practical aspects of technology inclusion in the financial sector and applications within global financing. It provides a clear direction for the effective implementation of FinTech initiatives/programs for improving banking financial processes, financial organizational learning, and performance excellence. Featuring coverage on a broad range of topics such as artificial intelligence, social financing, and customer satisfaction, this book encourages the management of the financial industry to take a proactive attitude toward FinTech, resulting in a better decision-making capability that will support financial organizations in their journey towards becoming FinTech-based organizations. As such, this book is ideally designed for financial analysts, finance managers, finance administrators, banking professionals, IT consultants, researchers, academics, students, and practitio

Author : Daniel P. Simon
Publisher : HarperCollins Leadership
Page : 256 pages
File Size : 47,7 Mb
Release : 2020-04-14
Category : Business & Economics
ISBN : 9781400216611

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The Money Hackers by Daniel P. Simon Pdf

Businesses, investors, and consumers are grappling with the seismic daily changes technology has brought to the banking and finance industry. The Money Hackers is the story of fintech’s major players and explores how these disruptions are transforming even money itself. Whether you’ve heard of fintech or not, it’s already changing your life. Have you ever “Venmoed” someone? Do you think of investing in Bitcoin--even though you can’t quite explain what it is? If you’ve deposited a check using your iPhone, that’s fintech. If you’ve gone to a bank branch and found it’s been closed for good, odds are that’s because of fintech too. This book focuses on some of fintech’s most powerful disruptors--a ragtag collection of financial outsiders and savants--and uses their incredible stories to explain not just how the technology works, but how the Silicon Valley thinking behind the technology, ideas like friction, hedonic adaptation, democratization, and disintermediation, is having a drastic effect on the entire banking and finance industry. Upon reading The Money Hackers, you will: Feel empowered with the knowledge needed to spot the opportunities the next wave of fintech disruptions will bring. Understand the critical pain points that fintech is resolving, through a profile of the major finsurgents behind the disruption. Topic areas include Friction (featuring founders of Venmo), Aggregate and Automate (featuring Adam Dell, founder of Open Table and brother of Michael Dell), and Rise of the Machines (featuring Jon Stein, founder of robo-advisor Betterment). Learn about some of the larger-than-life characters behind the fintech movement. The Money Hackers tells the fascinating story of fintech--how it began, and where it is likely taking us.

Author : Mr. Serhan Cevik
Publisher : International Monetary Fund
Page : 15 pages
File Size : 43,6 Mb
Release : 2023-12-08
Category : Business & Economics
ISBN : 9798400261060

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The Dark Side of the Moon? Fintech and Financial Stability by Mr. Serhan Cevik Pdf

Rapid advances in digital technology are revolutionizing the financial landscape. The rise of fintech has the potential to make financial systems more efficient and competitive and broaden financial inclusion. With greater technological complexity, however, fintech also poses potential systemic risks. In this paper, I use a novel dataset to trace the development of fintech (excluding cryptocurrencies) and empirically assess its impact on financial stability in a panel of 198 countries over the period 2012–2020. The analysis provides interesting insights into how fintech correlates with financial stability: (i) the impact magnitude and statistical significance of fintech depend on the type of instrument (digital lending vs. digital capital raising); (ii) the overall effect of all fintech instruments together turns out to be negative because of the overwhelming share of digital lending in total, albeit statistically insignificant; and (iii) while digital capital raising is estimated to have a positive effect on financial stability in advanced economies, its effect is negative in developing countries. Fintech is still small compared to traditional institutions, but rapidly expanding in riskier segments of the financial sector and creating new challenges for policymakers.

Author : Varun Mittal,Lillian Koh
Publisher : World Scientific
Page : 371 pages
File Size : 55,7 Mb
Release : 2023-10-23
Category : Business & Economics
ISBN : 9789811249174

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Fintech Nation, The: Excellence Unlocked In Singapore by Varun Mittal,Lillian Koh Pdf

Singapore's FinTech journey has been a story of relentless pursuit of excellence to build a global financial service hub with limited means and lots of aspirations. The slogan of 'Dream big. Start small. Move fast' has rallied regulators, startups, investors, corporates and everyone else to achieve a common goal.One of the critical superpowers of Singapore is a national character built on survival instinct and a distinctive obsession with being successful. Singaporeans by nature are kiasu (a Hokkien word which can be loosely translated to fear of missing out), and they wear it as a badge of honour. Being kiasu drives Singaporeans to be constantly paranoid, doing everything they can to achieve success. It creates a certain fanaticism about meritocracy and instils a belief that one can never be complacent.In a regulated industry, our fear is our biggest strength, pushing us to comply with a wide range of ever-evolving regulations. The durable social fabric supports an adherence to order and authority. It proves to be a significant asset when it comes to developing and supporting a heavily regulated industry like financial services.Singapore attracts people across the region to build their ventures in the domains of finance and technology. This book traces Singapore's journey from 2015 till today starting with establishment of regional hubs and globalisation of FinTech innovation. The key principles which established Singapore as a FinTech Nation have been an obsession with excellence referred to as RFFL (Right First, Fast Later), a unique model of economic and legal policies known as Singanomics and lastly, an organised and controlled model of a new idea development termed Garden Innovation.

Author : Ioannis Akkizidis,Manuel Stagars
Publisher : John Wiley & Sons
Page : 344 pages
File Size : 46,5 Mb
Release : 2015-12-08
Category : Business & Economics
ISBN : 9781119099178

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Marketplace Lending, Financial Analysis, and the Future of Credit by Ioannis Akkizidis,Manuel Stagars Pdf

The time for financial technology innovation is now Marketplace Lending, Financial Analysis, and the Future of Credit clearly explains why financial credit institutions need to further innovate within the financial technology arena. Through this text, you access a framework for applying innovative strategies in credit services. Provided and supported by financial institutions and entrepreneurs, the information in this engaging book encompasses printed guidance and digital ancillaries. Peer-to-peer lenders are steadily growing within the financial market. Integrating peer-to-peer lending into established credit institutions could strengthen the financial sector as a whole, and could lead to the incorporation of stronger risk and profitability management strategies. Explain (or Explore) approaches and challenges in financial analysis applied to credit risk and profitability Explore additional information provided via digital ancillaries, which will further support your understanding and application of key concepts Navigate the information organised into three subject areas: describing a new business model, knowledge integration, and proposing a new model for the Hybrid Financial Sector Understand how the rise of fintech fits into context within the current financial system Follow discussion of the current status quo and role of innovation in the financial industry, and consider the financial technology innovation landscape from the perspective of an entrepreneur Marketplace Lending, Financial Analysis, and the Future of Credit is a critical text that bridges the gap in understanding between financial technology entrepreneurs and credit institutions.

Author : Duena Blomstrom
Publisher : Springer
Page : 159 pages
File Size : 50,7 Mb
Release : 2018-03-16
Category : Business & Economics
ISBN : 9783319756530

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Emotional Banking by Duena Blomstrom Pdf

Banking is under threat. Despite access to fast-paced technology known as FinTech, an antiquated business model and internal organizational paralysis do not allow for the creation of a truly beloved brand and are stifling change. To survive and thrive when their competition is catching up, banks must understand the principles behind Emotional Banking—a cultural change concept that brings the consumer to the center of rethinking banking products and delivery. This book starts with a history of the space then moves into an overview of what FinTech is. After discussing the state of banking today including stories from the biggest names in the industry, the concept of Emotional Banking and Brand are introduced as an answer to the problems outlined above. It concludes with examples of best practices and a hands-on approach on how to change the inertia, become a brand and make customers fall in love with their bank. Some of the questions this book tackles include: · Why don’t banks “care”? · How many banks will survive? · What is FinTech and why does it matter? · Can Banks become beloved brands and find their way to the consumer’s heart? · Why is there a disconnect between what we say and what we do in the industry? · Is inertia in banking a result of broken internal culture? · Which big brand or challenger will be at the top in 5 years?

Author : Swati Mehta,Baldev Singh Shergill
Publisher : Taylor & Francis
Page : 426 pages
File Size : 42,5 Mb
Release : 2022-12-28
Category : Social Science
ISBN : 9781000816877

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Innovation Systems, Economic Development and Public Policy by Swati Mehta,Baldev Singh Shergill Pdf

This book looks at the policy challenges confronting India and other developing countries in creating a robust, sustainable and industrialized economy. It investigates different facets of the nature, structure, growth and impact of innovation in industries, education and within institutions to foster greater productivity and growth. The volume examines systems adopted to boost innovation and diffusion of technology in different economies while also mapping their success and failures. It offers suggestions for the future for long-term growth, sustainability and inclusiveness amidst dynamic, fast-changing technological frontiers using examples and case studies from India, Sri Lanka and Malaysia, among others. The chapters in the book, written to honour the academic work of Professor Lakhwinder Singh in the field of development economics and innovation economics, highlight the importance of adopting and adapting new technologies and development models to local contexts and small industries. An important contribution to research on innovation economics, this interdisciplinary book will be of interest to students, researchers, practitioners and policy-makers working in industrial economics, international economics, political economy, innovation economics, institutional economics, industrial organization and international trade.

Author : Sghari, Amira,Mezghani, Karim
Publisher : IGI Global
Page : 273 pages
File Size : 43,8 Mb
Release : 2020-11-27
Category : Business & Economics
ISBN : 9781799871125

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Influence of FinTech on Management Transformation by Sghari, Amira,Mezghani, Karim Pdf

Digital financial services are starting to become increasingly popular with consumers, thereby fostering a favorable climate for digital entrepreneurship: mobile payment, Blockchain, etc. Research trying to understand and explain this phenomenon focuses on FinTech. Some scholars regard “FinTech” as financial innovations that upset the market while others view them as startups, based on financial innovations, that have changed the ecosystem. There are many open-ended questions about FinTech’s business models, how it relates to blockchain, and whether this is a collaborative relationship between traditional financial players or a competitive relationship. Noting the lack of research work on these themes, this book attempts to shed light on this area to bridge the gap between the discourse of practitioners and the literature. Influence of FinTech on Management Transformation is an innovative reference book that defines FinTech and its ecosystem as well as concepts in relation to management transformations caused by FinTech and shares new theoretical and empirical frameworks, useful experiences, and best practices to deal with new technological changes. The chapters are divided into three interrelated sections: “Insights From the Blockchain Technology”; “Managerial and Cultural Transformations in the Era of FinTech”; and “Empirical Experiences and Applications.” This book is a valuable reference tool for financial planners/advisors, managers, accountants, financial analysts, compliance experts, practitioners, researchers, academicians, and students interested in the influence of FinTech on management transformation.

Author : Daniel Fasnacht
Publisher : Springer
Page : 283 pages
File Size : 45,6 Mb
Release : 2018-11-19
Category : Business & Economics
ISBN : 9783319763941

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Open Innovation Ecosystems by Daniel Fasnacht Pdf

Sharing information and knowledge, co-innovating with clients, communities, and competitors and adopting cognitive technology, robo advisors, crowdfunding, and blockchain reflect current socio-economic behaviour. Emerging growth regions in Asia, demographic shifts, intergenerational wealth transfers and increasing regulations are other trends that amplify each other, disrupt the client journey, and affect the entire economy. Moreover, unprecedentedly, new market entrants outside the financial sector, be it Amazon, Apple, Google, or Facebook, are increasingly expanding their scale and scope to offer financial services. Featuring case studies of Chinese business ecosystems, such as Alibaba/Ant Financial, that have transformed from displaying domestic and organic growth to rapid global expansion, this highly readable book gives you glimpses of how banking services are evolving. We break down everything you need to know about the foray of challenger banks into the financial services. You learn how they link health to wealth data and gain advantages through analytical capabilities in the race to attract sophisticated clients with highly personalized experiences. The next level of creating and capturing value for clients and businesses involves platform models embedded in cross-sector ecosystems. Digital platforms are the crucial entry point to global markets, creating value for multiple sides. They leverage self-driving ecosystems that go beyond linear value chains applied in traditional business models as the sources of growth in an interconnected world are collaboration and network effects. The winners will be those who open up and engage themselves in an ecosystem that transcends organizational boundaries and performs without sector borders because every actor contributes to the value constellation of the system. The book provides practitioners and scholars with new insights into open and holistic business models, where competition in future will be between ecosystems rather than at the company level. It encourages leaders to expand their skills and think through the lens of the ecosystem theory while developing compelling strategies to serve the next-generation clients.

Author : Maurizio Pompella,Roman Matousek
Publisher : Springer Nature
Page : 540 pages
File Size : 45,9 Mb
Release : 2021-06-01
Category : Business & Economics
ISBN : 9783030664336

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The Palgrave Handbook of FinTech and Blockchain by Maurizio Pompella,Roman Matousek Pdf

Financial services technology and its effect on the field of finance and banking has been of major importance within the last few years. The spread of these so-called disruptive technologies, including Blockchain, has radically changed financial markets and transformed the operation of the industry as a whole. This is the first multidisciplinary handbook of FinTech and Blockchain covering finance, economics, and legal aspects globally. With comprehensive coverage of the current landscape of financial technology alongside a forward-looking approach, the chapters are devoted to the spread of structured finance, ICT, distributed ledger technology (DLT), cybersecurity, data protection, artificial intelligence, and cryptocurrencies. Given an unprecedented 2020, the contributions also address the consequences of the current emergency, and the pandemic stroke, which is revolutionizing social and economic paradigms and heavily affecting Fintech, Blockchain, and the banking sector as well, and would be of particular interest to finance academics and researchers alongside banking and financial services professionals.

Author : Susanne Chishti,Janos Barberis
Publisher : John Wiley & Sons
Page : 312 pages
File Size : 41,9 Mb
Release : 2016-05-02
Category : Business & Economics
ISBN : 9781119218876

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The FINTECH Book by Susanne Chishti,Janos Barberis Pdf

A front-line industry insider's look at the financial technology explosion The FINTECH Book is your primary guide to the financial technology revolution, and the disruption, innovation and opportunity therein. Written by prominent thought leaders in the global fintech investment space, this book aggregates diverse industry expertise into a single informative volume to provide entrepreneurs, bankers and investors with the answers they need to capitalize on this lucrative market. Key industry developments are explained in detail, and critical insights from cutting-edge practitioners offer first-hand information and lessons learned. The financial technology sector is booming, and entrepreneurs, bankers, consultants, investors and asset managers are scrambling for more information: Who are the key players? What's driving the explosive growth? What are the risks? This book collates insights, knowledge and guidance from industry experts to provide the answers to these questions and more. Get up to speed on the latest industry developments Grasp the market dynamics of the 'fintech revolution' Realize the sector's potential and impact on related industries Gain expert insight on investment and entrepreneurial opportunities The fintech market captured over US$14 billion in 2014, a three-fold increase from the previous year. New startups are popping up at an increasing pace, and large banks and insurance companies are being pushed toward increasing digital operations in order to survive. The financial technology sector is booming and The FINTECH Book is the first crowd-sourced book on the subject globally, making it an invaluable source of information for anybody working in or interested in this space.

Author : Chris Skinner
Publisher : Marshall Cavendish International Asia Pte Ltd
Page : 370 pages
File Size : 54,9 Mb
Release : 2020-03-02
Category : Business & Economics
ISBN : 9789814893053

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Doing Digital: Lessons from Leaders by Chris Skinner Pdf

There has been lots of discussion of digital and open banking, banking-as-a-service, banking platforms, FinTech and TechFin and more over the past decade. This all indicates that we are in a decade of rapid cycle change that presents huge challenges and huge opportunities. Billion dollar unicorns appear rapidly, whilst internet giants achieve global domination. How are banks dealing with these changes and are any banks showing leadership? Well yes, a few are. With all the gloom merchants saying that traditional banking is doomed, a few banks have made radical moves to adapt and survive. Chris Skinner, world-leading commentator on banking and technology, has selected five of those banks—JPMorgan Chase (USA), BBVA and ING (Europe), and DBS and CMB (Asia)—to share their experiences. In detailed interviews, and with wide-ranging commentary, he has discovered the secrets of how not just adapt and survive, but how to thrive in this sea change of finance and technology. Learn the lessons of the leaders, and learn how to become a successful digital bank, by Doing Digital.

Author : Chris Skinner
Publisher : Marshall Cavendish International Asia Pte Ltd
Page : 424 pages
File Size : 54,9 Mb
Release : 2016-01-15
Category : Business & Economics
ISBN : 9789814751094

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ValueWeb by Chris Skinner Pdf