Financial technology: a review of extant literature

Abstract

Purpose This paper aims to undertake a thematic review of academic papers on financial technology (FinTech) to identify three broad categories for the purpose of classifying extant literature. The paper summarizes the research and findings in this emerging field. Thereafter, it identifies the gaps and provides directions for further research. Simultaneously, the paper collates technical terms related to FinTech that appear repeatedly in each category and explains them. Finally, the study highlights the lessons that growing FinTech firms and their regulators can learn from the experiences of their counterparts across the globe. Design/methodology/approach A systematic review of literature consisting of 130 studies (social science research network [SSRN]-29 papers, Scopus-81, other sources-20) on FinTech is carried out in this thematic paper. Findings This thematic paper divides FinTech into three themes, i.e. financial industry, innovation/technology and law/regulation. The paper suggests that a thorough impact of FinTech on various stakeholders can be understood using three dimensions, namely, consumers, market players and regulatory front. It is noted that FinTech is in its nascent phase and is undergoing continuous development and implementation through product and process innovation, disruption and transformation. Research limitations/implications The paper reports that FinTech promises huge potential for further study by various stakeholders in the FinTech industry – from academia to practitioners to regulators. Practical implications The paper summarizes lessons that could be of significance for FinTech users, producers, entrepreneurs, investors, policy designers and regulators. Originality/value The paper is believed to add value to the understanding of FinTech in light of the emerging threats and opportunities for its various stakeholders.

Behavioural Intention of Commercial Banks’ Customers towards Financial Technology Services

“…Stewart and Jurjens (2018) identified that data security strongly impacts the intention to use FinTech. In contrast, Sangwan et al (2019) reported that perceived security has no direct relationship on intention to use. Accordingly, it is proposed that: H3: Cyber-security risks has a significant relationship on behavioural intention to use FinTech services.…”

“…In the FinTech area, the introduction of new FinTech technologies could involve unforeseen cybersecurity risk which caused by untrusted and anonymous data users (Sangwan et al, 2019). Security risk is "the potential loss due to fraud or a hacking that compromises the security of the financial transactions of FinTech" (Ryu, 2018, p. 548).…”

“…Security risk is "the potential loss due to fraud or a hacking that compromises the security of the financial transactions of FinTech" (Ryu, 2018, p. 548). The modification of regulations is needed to ensure FinTech companies are safer in the context of investor protection (Sangwan et al, 2019). Consumers are critically concern about security risks on the electronic services as it has the probability of a privacy invasion.…”

“…Hence, the use of FinTech is likely related to the potential of large losses (Ryu, 2018) and exposed to other cyber security risks, illegal activities and data theft. In order to control and reduce cybersecurity risks, various initiatives have been highlighted such as implementing a FinTech supervisory sandbox, training for current and next generation of cyber-security talents, the institutionalisation of risk-based approach (Sangwan et al, 2019), good internal controls and identity authentication such as biometrics identification, digital certificates and mobile device certificates than traditional password logins (Ng & Kwok, 2017). Singh et al (2020) revealed that there is a significant effect of security on intention.…”

FinTech, Blockchain and Islamic Finance: An Extensive Literature Review

“…The fast and rapid development in Fintech can be equally disruptive if it is not regulated properly (Vijayanti, 2017). As the FinTech is in its early stage of development and the impact of FinTech on various stakeholders can only be understood by using the dimensions such as regulation (Sangwan, 2019).…”