This paper is a review of the literature on fintech and its interaction with banking. Included in fintech are innovations in payment systems (including cryptocurrencies), credit markets (including ...P2P lending), and insurance, with Blockchain-assisted smart contracts playing a role. The paper provides a definition of fintech, examines some statistics and stylized facts, and then reviews the theoretical and empirical literature. The review is organized around four main research questions. The paper summarizes our knowledge on these questions and concludes with questions for future research.
The Role of Technology in Mortgage Lending Fuster, Andreas; Plosser, Matthew; Schnabl, Philipp ...
The Review of financial studies,
05/2019, Volume:
32, Issue:
5
Journal Article
Peer reviewed
Open access
Technology-based (“FinTech”) lenders increased their market share of U.S. mortgage lending from 2% to 8% from 2010 to 2016. Using loan-level data on mortgage applications and originations, we show ...that FinTech lenders process mortgage applications 20% faster than other lenders, controlling for observable characteristics. Faster processing does not come at the cost of higher defaults. FinTech lenders adjust supply more elastically than do other lenders in response to exogenous mortgage demand shocks. In areas with more FinTech lending, borrowers refinance more, especially when it is in their interest. We find no evidence that FinTech lenders target borrowers with low access to finance.
This paper studies whether, in the consumer credit market, peer-to-peer (P2P) lending platforms serve as substitutes for banks or instead as complements. I develop a conceptual framework and derive ...testable predictions to distinguish between these two possibilities. Using a regulatory change as an exogenous shock to bank credit supply, I find that P2P lending is a substitute for bank lending in terms of serving infra-marginal bank borrowers yet complements bank lending with respect to small loans. These results indicate that the credit expansion resulting from P2P lending likely occurs only among borrowers who already have access to bank credit.
Sex, Drugs, and Bitcoin Foley, Sean; Karlsen, Jonathan R.; Putniņš, Tālis J.
The Review of financial studies,
05/2019, Volume:
32, Issue:
5
Journal Article
Peer reviewed
Open access
Cryptocurrencies are among the largest unregulated markets in the world. We find that approximately one-quarter of bitcoin users are involved in illegal activity. We estimate that around $76 billion ...of illegal activity per year involve bitcoin (46% of bitcoin transactions), which is close to the scale of the U.S. and European markets for illegal drugs. The illegal share of bitcoin activity declines with mainstream interest in bitcoin and with the emergence of more opaque cryptocurrencies. The techniques developed in this paper have applications in cryptocurrency surveillance. Our findings suggest that cryptocurrencies are transforming the black markets by enabling “black e-commerce.”
In this paper we reflect on a number of IT related challenges during the COVID19 pandemic, primarily from a CIO and IT professionals perspective. We consider three time periods, namely the period ...before the pandemic, the response to the pandemic and the period after it. For each period we discuss the key challenges that practitioners faced and outline important areas to consider for the future. Hopefully, the lessons learnt and the experiences gained will positively inform future academic research and practice.
The fourth industrial revolution we currently witness changes the role of humans in operations systems. Although automation and assistance technologies are becoming more prevalent in production and ...logistics, there is consensus that humans will remain an essential part of operations systems. Nevertheless, human factors are still underrepresented in this research stream resulting in an important research and application gap. This article first exposes this gap by presenting the results of a focused content analysis of earlier research on Industry 4.0. To contribute to closing this gap, it then develops a conceptual framework that integrates several key concepts from the human factors engineering discipline that are important in the context of Industry 4.0 and that should thus be considered in future research in this area. The framework can be used in research and development to systematically consider human factors in Industry 4.0 designs and implementations. This enables the analysis of changing demands for humans in Industry 4.0 environments and contributes towards a successful digital transformation that avoid the pitfalls of innovation performed without attention to human factors. The paper concludes with highlighting future research directions on human factors in Industry 4.0 as well as managerial implications for successful applications in practice.
Blockchain technology provides decentralized consensus and potentially enlarges the contracting space through smart contracts. Meanwhile, generating decentralized consensus entails distributing ...information that necessarily alters the informational environment. We analyze how decentralization relates to consensus quality and how the quintessential features of blockchain remold the landscape of competition. Smart contracts can mitigate informational asymmetry and improve welfare and consumer surplus through enhanced entry and competition, yet distributing information during consensus generation may encourage greater collusion. In general, blockchains sustain market equilibria with a wider range of economic outcomes. We further discuss the implications for antitrust policies targeted at blockchain applications.
•We define autonomous mobile robots in intralogistics.•We explain the evolution from automated guided vehicles to autonomous mobile robots.•We identify the technological advances affecting the ...planning and control decisions.•We provide guidance and methods to plan and control autonomous mobile robots.•We identify a research agenda for planning and control of autonomous mobile robots.
Autonomous mobile robots (AMR) are currently being introduced in many intralogistics operations, like manufacturing, warehousing, cross-docks, terminals, and hospitals. Their advanced hardware and control software allow autonomous operations in dynamic environments. Compared to an automated guided vehicle (AGV) system in which a central unit takes control of scheduling, routing, and dispatching decisions for all AGVs, AMRs can communicate and negotiate independently with other resources like machines and systems and thus decentralize the decision-making process. Decentralized decision-making allows the system to react dynamically to changes in the system state and environment. These developments have influenced the traditional methods and decision-making processes for planning and control. This study identifies and classifies research related to the planning and control of AMRs in intralogistics. We provide an extended literature review that highlights how AMR technological advances affect planning and control decisions. We contribute to the literature by introducing an AMR planning and control framework to guide managers in the decision-making process, thereby supporting them to achieve optimal performance. Finally, we propose an agenda for future research within this field.
How Valuable Is FinTech Innovation? Chen, Mark A.; Wu, Qinxi; Yang, Baozhong
The Review of financial studies,
05/2019, Volume:
32, Issue:
5
Journal Article
Peer reviewed
Open access
We provide large-scale evidence on the occurrence and value of FinTech innovation. Using data on patent filings from 2003 to 2017, we apply machine learning to identify and classify innovations by ...their underlying technologies. We find that most FinTech innovations yield substantial value to innovators, with blockchain being particularly valuable. For the overall financial sector, internet of things (IoT), robo-advising, and blockchain are the most valuable innovation types. Innovations affect financial industries more negatively when they involve disruptive technologies from nonfinancial startups, but market leaders that invest heavily in their own innovation can avoid much of the negative value effect.
ROBOTS AT WORK Graetz, Georg; Michaels, Guy
The review of economics and statistics,
12/2018, Volume:
100, Issue:
5
Journal Article
Peer reviewed
Open access
We analyze for the first time the economic contributions of modern industrial robots, which are flexible, versatile, and autonomous machines. We use novel panel data on robot adoption within ...industries in seventeen countries from 1993 to 2007 and new instrumental variables that rely on robots’ comparative advantage in specific tasks. Our findings suggest that increased robot use contributed approximately 0.36 percentage points to annual labor productivity growth, while at the same time raising total factor productivity and lowering output prices. Our estimates also suggest that robots did not significantly reduce total employment, although they did reduce low-skilled workers’ employment share.
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