It is unquestionable that fintech firms are learning how to carry out the credit activity of banks, exposing them to the risks already regulated for the banks. The current financial system is ...breaking the taboos of the direct intermediation with the consequent assignment of risks to consumers by means of lending platforms. These phenomena seem to undermine theories of financial intermediation. In this context, the main risks for financial system that arise are from technology as it is applied and activity developed, but which are exactly the risks and different impacts operators generate? The belief that culture contributes to shaping corporate behaviour suggests that the culture of risk in a bank influences its choices in risk-taking. In turn, competition with fintech firms affects risk culture in banking externally (Carretta 2001). This conceptual paper aims to analyse the risks for incumbents (banks) and for fintech firms as has been pointed out by regulators in idiosyncratic and systemic points of view. The methodology of this study is based on drawing a comparison between the effects of innovation in non-financial companies, in particular in the 1990s, with technological integration in the activity of banks. The author compares available literature and reports of consulting firms and regulator outputs on banks and fintech firms. The relevant and practical aspects are highlighted, evaluating the related risks as a consequence of the (risk) culture characteristics. The differences in risk cultures between these two kinds of organizations and the relative competitive dynamics, combined with collaboration among them, may lead to more flexible banks and more rigorous fintech firms. The common good will benefit from this new financial system if new business models are able to manage risks in a sustainable way (EBA, 2018).
The increasingly developing Islamic fintech in this technological era needs to be complemented by knowledge. Therefore, this research aims to understand Islamic fintech from the perspective of ...Islamic law using a descriptive qualitative method. The research methodology employed in this study is a literature review gathered from various sources. The results obtained indicate that Islamic fintech has become a contemporary fiqh discourse that has not been definitively addressed in the Quran and the Hadith of the Prophet Muhammad (peace be upon him). Hence, it relies on ijma (consensus of scholars) as its legal source. The Indonesian Ulema Council issued Fatwa DSN-MUI No.117/DSN-MUI/II/2018 regarding Information Technology-Based Financing Services with Sharia Principles. This fatwa is in accordance with Islamic Sharia and has clear legal protections outlined in legislation and regulations.
AI in finance refers to the applications of AI techniques in financial businesses. This area has attracted attention for decades, with both classic and modern AI techniques applied to increasingly ...broader areas of finance, economy, and society. In contrast to reviews on discussing the problems, aspects, and opportunities of finance benefited from specific or some new-generation AI and data science (AIDS) techniques or the progress of applying specific techniques to resolving certain financial problems, this review offers a comprehensive and dense landscape of the overwhelming challenges, techniques, and opportunities of AIDS research in finance over the past decades. The challenges of financial businesses and data are first outlined, followed by a comprehensive categorization and a dense overview of the decades of AIDS research in finance. We then structure and illustrate the data-driven analytics and learning of financial businesses and data. A comparison, criticism, and discussion of classic versus modern AIDS techniques for finance follows. Finally, the open issues and opportunities to address future AIDS-empowered finance and finance-motivated AIDS research are discussed.
FINTECH MARKET DEVELOPMENT IN THE WORLD AND IN UKRAINE Bondarenko, L.; Moroz, N.; Zhelizniak, R. ...
Fìnansovo-kreditna dìâlʹnìstʹ: problemi teorìì̈ ta praktiki (Online),
01/2022, Letnik:
6, Številka:
41
Journal Article
Recenzirano
Odprti dostop
The trends of fintech development in the world and in Ukraine have been explored in the article. The COVID-19 pandemic has spurred accelerated financial innovation development and increase of ...investment in this area. Fintech’s payment sector has the highest investment activity and investors’ interest in such sectors as cybersecurity, regtech, cryptocurrency and blockchain is growing. Investors prefer US, UK, and German markets, as well as already developed, sustainable businesses. These investors’ interests and the concentration of investments are projected to continue in the coming years. Ukraine is characterized by a low level of development of financial technologies, but there has been an increase in investment activity in fintech, particularly in 2020 investments were increased in the early stages of business development. The development of fintech in Ukraine is expected to accelerate due to the recent positive changes that have taken place in this direction: a new law on financial monitoring has been enacted, allowing remote identification and verification of clients; the Law of Ukraine «On Virtual Assets» has been enacted, which will allow to regulate the process of circulation of cryptocurrency and development of the cryptosphere; the NBU has became the regulator of financial institutions and creating equal conditions for banking and non-banking institutions to operate on the market; the Fintech Development Strategy 2025 has been developed to stimulate innovation, improve the availability and quality of financial services, and create a strong fintech ecosystem; the Ukrainian Startup Fund has been established to promote the creation and development of technological startups. The following directions for further development of fintech in Ukraine have been defined: improving financial and digital literacy; increasing the availability and safety of non-cash transactions; developing the infrastructure of the fintech ecosystem; integration of the national fintech ecosystem into the global fintech ecosystem; accretion of the fintech market investment potential; financial services sector digitalization. It is necessary to introduce modern transparent methods of regulating the fintech market in order to stimulate financial innovation projects and consumer protection, to stimulate interaction of fintech companies and banks, other financial institutions towards the development and diffusion of financial innovations.
Keywords: fintech, investments, innovations, fintech market, fintech companies.
JEL Classification G20, G24
Formulas: 0; fig.: 4; tabl.: 0; bibl.: 13.
An imbalance in the population gender ratio is a real-world problem that China faces. A related issue is how the ratio imbalance will affect FinTech innovation. Based on a theoretical analysis, this ...paper uses text mining and CRITIC methods to construct a provincial FinTech innovation index from 2008 to 2018 and studies the impact of the gender ratio on FinTech innovation. The results show that the gender imbalance can promote FinTech innovation by increasing the social risk-taking level. It is also found that an imbalanced gender ratio also increases FinTech risk exposure. This paper provides insights into the demographic reasons behind the rise and development of China's FinTech industry.
•This paper uses text mining and CRITIC methods to construct a provincial FinTech innovation index.•The gender imbalance can promote FinTech innovation by increasing the social risk-taking level.•An imbalanced gender ratio also increases FinTech risk exposure.
Financial technology (fintech) is seen as possessing significant potential to provide the poor access to financial services and help them escape the clutches of poverty. Surprisingly, Information ...Systems (IS) research has engaged little with fintech's promise of fostering financial inclusion for the poor. In the spirit of ‘making a better world with ICTs’, conducting ‘responsible IS research for a better world’ and ‘understanding and tackling societal grand challenges through management research’, we advance a framework for guiding IS research on fintech‐led financial inclusion. Drawing on the IS literature and Information and Communication Technologies for Development (ICT4D) scholarship, we extrapolate five areas of research that can better illuminate fintech's contributions to financial inclusion: (a) business strategies for fintech‐led financial inclusion; (b) digital artifacts of fintech‐led financial inclusion; (c) business environment of fintech‐led financial inclusion; (d) microfoundations of fintech for financial inclusion; (e) developmental impacts of fintech. We conclude with a discussion of how the five areas offer opportunities for impactful research on fintech and the promise of building a financially inclusive society.
This reprint relating the Insurtech, Proptech, and Fintech environments tries to provide a wide range of perspectives about these sectors, focusing on fields such as financial technology, banking, ...insurance, real estate, digital implementation, and quantitative analysis, among others. It is beyond any doubt that this sector is probably one of the most relevant and disrupting new markets in recent years, with a great potential to generate collaborations with financial institutions and the insurance world, which jointly grow towards a more innovative business model. The lines between financial services and technology have blurred to the point that the previously distinct sectors are colliding. In effect, digital-only banks are offering redesigned client propositions and cost profiles, and consumers are ready for the digital shake-up. The Special Issue “Insurtech, Proptech, and Fintech Environment: Sustainability, Global Trends and Opportunities” has included original contributions demonstrating significant advancements, innovations, relevance, and potential growth in this sector in the forthcoming years. We have also focused on the main forms of interaction between banks and FinTech companies.
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