Disruptive Technology in Banking and Finance: An International Perspective on FinTech

Foreword
Contents
Notes on Contributors
List of Figures
List of Tables
1 Introduction
1.1 FinTech: Covid-19 and the Global Financial Crisis (GFC)
1.2 Organization of Chapters in This Book
2 A Historical Perspective on Disruptive Technologies
2.1 A History of Technology and Finance: From the Dawn of Technological Development in Banking and Financial Markets to the Birth of FinTech
2.2 Phase 1 (Up to 1960s) and Phase 2 (1960s–2008): From Zero to Hero
2.2.1 Phase 1 (1860s–1960s): Analogue Technology, Much Paper
2.2.2 Phase 2 (1960s–2008): First Technological Changes
2.2.2.1 Banking Services
2.2.2.2 The Evolution of the Payment System and the Birth of the New Customers
2.2.2.3 Trading Services Become More Electronic
2.3 Phase 3 (2008–2020): FinTech Disruption
2.3.1 The FinTech Companies
2.3.1.1 Lending Services and Debt or Equity Crowdfunding
2.3.1.2 Payments and Money: From e-Money to Cryptocurrencies and Stable Coins
2.3.1.3 Asset Management and Investment Services
2.3.1.4 InsurTech
2.3.2 The Role of BigTech Companies
2.3.3 The Incumbent Companies
2.4 Phase 4 (Post-2020): What’s Next?
References
3 A Taxonomy of FinTech Innovation
3.1 Part 1: Introduction to Innovation
3.1.1 Innovation as a Driving Force of Economic Growth
3.1.2 Innovations in the Finance Industry
3.1.3 The Emergence of FinTech
3.2 Part 2: A Taxonomy of FinTech Innovation Based on Patents
3.2.1 Identifying Key Areas of Innovation Using Patent Data
3.2.1.1 Payments Channels
3.2.1.2 Banking Channels
3.2.1.3 Financial Entities
3.2.1.4 Reporting Analytics
3.3 Conclusion
References
4 Cryptocurrency Mining Protocols: A Regulatory and Technological Overview
4.1 Introduction
4.2 The Digitalization of Money
4.3 Central Bank Issued Digital Currencies
4.4 Cryptocurrencies and Blockchain: Country Responses
4.5 A Short History of Ledgers
4.6 Centralized vs Decentralized Ledgers
4.7 Cryptocurrencies as Fiat And as an Accepted Form of Payment
4.8 Consensus Algorithm Employed to Secure Network
4.9 Concluding Remarks
References
5 The Development of InsurTech in Europe and the Strategic Response of Incumbents
5.1 Introduction
5.2 The New Insurance Landscape
5.3 Measuring Market Reaction to Incumbents’ Investments in InsurTech Start-Ups
5.3.1 Descriptive Statistics
5.3.2 Event-Study Results
5.4 Conclusions
References
6 FinTech and Banking: An Evolving Relationship
6.1 Introduction
6.2 FinTech: A Disruption in the Financial Sector
6.2.1 FinTech Services
6.2.1.1 Services Oriented Towards Consumers: B2C FinTech
6.2.1.2 Services Oriented Towards Firms: B2B FinTech
6.2.2 The Global FinTech Phenomenon
6.2.2.1 FinTech Population
6.2.2.2 FinTech Credit
6.2.2.3 FinTech Investments
6.2.2.4 FinTech Adoption
6.3 The Banking Sector in the Face of the Emergence of FinTech
6.3.1 Banks’ Digitalization
6.3.2 New Banking Technologies
6.3.3 The Digital Transformation of the Finance Industry: A SWOT Analysis
6.3.4 Scenarios of Future Banking
6.4 Banks and FinTechs: An Evolving Relationship
6.4.1 FinTech’ License
6.4.2 Competition, Collaboration, and Coopetition
6.4.3 Bank and FinTechs Alliances
6.5 FinTech and Banks: The Provision of Financial Services in the Post COVID-19 Era
6.5.1 The Impact of COVID-19
6.5.2 Digital Finance in the Post-COVID-19 Era
References
7 FinTech Cultures and Organizational Changes in Financial Services Providers
7.1 Introduction
7.2 Rules and Cultures as Mechanisms Influencing FSP Innovative Behaviour
7.3 Cultural and Organizational Challenges in Front of FinTech Innovation
7.4 Current and Future Issues Associated with Managing FinTech Cultures and Organizational Changes, Including Future Research Streams
7.5 Concluding Thoughts
References
8 Digital Disruption: How the Financial Services Landscape Is Being Transformed
8.1 The Potential Disruptive Power of Fintech
8.2 The Role of Financial Markets
8.3 Are Incumbent Financial Services Players Up to the Challenge?
8.4 Fintechs Embrace Disruptive Technologies and Applications
8.5 Cloud Computing
8.6 Regtech Responds to the Call for Greater Compliance
8.7 Blockchain and DLT
8.8 Artificial Intelligence and Machine Learning
8.9 Payments
8.10 Credit Markets Disrupted
8.11 Digital Banking
8.12 Insurtech
8.13 Stakeholders in the Fintech Ecosystem
8.14 Conclusion
References
9 FinTech and Regulation: From Start to Boost—A New Framework in the Financial Services Industry. Where Is the Market Going? Too Early to Say
9.1 Introduction
9.2 Setting the Scene: Banking Under Deep Transformation
9.2.1 Why is This Happening Now?
9.2.2 The Role of Regulators and Authorities
9.2.3 New Frameworks for Financial Services and Evolving Stages of Value Chains
9.2.4 Nascent Business Ecosystems in a Nutshell
9.3 Challenging Regulators to Balance Innovation, Stability, and Customer Trust
9.4 Conclusions
References
10 Bigger Fish to Fry: FinTech and the Digital Transformation of Financial Services
10.1 Introduction
10.2 FinTech in the UK
10.3 Financial Innovation Policy: A Conceptual Framework
10.4 The Example of UK InsurTech
10.4.1 Market Failures
10.4.2 Organisational Failures and Governance
10.5 Conclusion
References
11 Conclusion: Fintech—A Perfect Day or Walk on the Wild Side?
11.1 Introduction
11.2 The Institutions
11.3 Banks, Market Power, and Business Models
11.4 Fintech Innovations and Associated Risks
11.5 The Evolving Market Structure
11.5.1 The Impact of COVID-19
11.5.2 Fintech Adoption Rates and Impact on Banks
11.5.3 Impact of Fintech on Core Banking Activities
11.5.4 Fintech and Credit
11.5.5 Linkages Between Fintech and Banks and the Financial Ecosystem
11.5.6 Fintech and Financial Inclusion
11.5.7 Scenario Analysis
11.6 Concluding Remarks
Bibliography
Index