Fintech

Puschmann, Thomas

doi:10.1007/s12599-017-0464-6

Cited by 416 publications

(268 citation statements)

References 15 publications

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“…The term fintech is a contraction of financial technology and encompasses young companies that develop Internet-based technologies that enable or provide financial services. Puschmann (2017) reports that the term is most likely first mentioned in the early 1990s. However, Zavolokina et al (2016) state that the number of publications on fintechs has only recently increased.…”

Section: Fintechsmentioning

confidence: 99%

Why fintechs cooperate with banks—evidence from germany

Bömer

Maxin

2018

ZVersWiss

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We developed a conceptual framework to explain why young financial technology companies (fintechs) seek to cooperate with incumbents from the finance sector. Examining 14 case studies on fintech-bank cooperation, we identified three main reasons: first, banks enable a fintech's market entry; second, banks increase a fintech's profits; and finally, banks enable new fintech products. We observed that each of these reasons is related to particular resources, which fintechs obtain through their cooperation partner. Additionally, we found that fintechs use different label approaches to sell their products when they cooperate with banks. Based on these results, we developed propositions that can be tested in future research.

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Section: Fintechsmentioning

confidence: 99%

Why fintechs cooperate with banks—evidence from germany

Bömer

Maxin

2018

ZVersWiss

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“…The challenge is to enable fair competition between an established and highly regulated banking sector and an emerging start‐up sector that tendentially needs flexible regulation and support for innovation. A dual regulatory approach involving a small banking box regulation for regional banks that lifts the burdens of excessive reporting (Dombret, ; Schiele et al, ) and a “regulatory sandbox” (Claessens et al, ; Puschmann, ) for FinTech companies that research truly innovative screening and monitoring technologies could help to overcome this challenge.…”

Section: Resultsmentioning

confidence: 99%

“…Generally, ICT has a strong impact on banking and finance due to the information‐based nature of most financial products, including loans. Banks were early adopters of ICT, dating back to the 1960s, and ICT costs account for 15–20% of all costs, constituting the second largest cost factor after labour (Puschmann, ). Despite the early adoption of ICT, the banking industry is currently excited by the introduction of FinTech, which can be considered the second digital transformation of the industry.…”

Section: Theoretical Background: Soft Information Regional Banks Anmentioning

confidence: 99%

“…Although FinTech includes activities of the incumbent financial service providers, for example banks, it is mostly associated with the activities of start‐up companies, such as N‐bank and no‐bank competitors like Google Pay (Dapp, ; Puschmann, ). Therefore, numerous authors perceive FinTech as a challenge for established banks (Dapp, ; Brandl & Hornuf, ; Jagtiani & Lemieux, ; Philippon, ; Puschmann, ; Tang, ), which is not to deny that banks also cooperate with or invest in FinTech start‐ups (Brandl & Hornuf, ).…”

Section: Theoretical Background: Soft Information Regional Banks Anmentioning

confidence: 99%

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Will FinTech make regional banks superfluous for small firm finance? Observations from soft information‐based lending in Germany

Flögel

Beckamp

2019

Economic Notes

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Regional banks have a competitive advantage in that short distances to clients enable the use of soft information for superior lending decisions. If the ambition of FinTech startups to create superior screening and monitoring technologies materialises, this advantage would be diminished and regional banks would become superfluous for small firm finance. To explore this claim, the paper in hand analyses qualitative empirical data about the lending processes and rating system use of regional German savings banks. In essence, the results from participant observation and interviews clarify the importance of "real" soft information for critical lending decisions. The context specificity and limited verifiability of "real" soft information hamper it from being hardened through the use of rating systems and other bank-ICT. Though FinTech's scoring technologies may overcome the first limitation, it appears likely that in the course of scoring development "real" soft information will be systematically crowded out due to the manipulation problem. The paper expects improved access to finance for SMEs if FinTech solutions overcome both limitations of "real" soft information use, or if peer-to-peer lending and regional banks coexist. Deteriorated access to finance is expected if FinTech companies displace the relationship banking of regional banks due to enhanced competition, without preserving the advantages of "real" soft information with superior screening and monitoring technologies. The paper concludes with recommendations on how to prevent deteriorated access to finance for small firms by promoting fair competition and FinTech innovations. K E Y W O R D SFinTech, peer-to-peer lending, regional banks, relationship banking, small firm finance, soft information

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“…According to Snyder, Witell, Gustafsson, Fombelle, and Kristensson (2016), several companies have redefined their business, including several new services, in order to create a new experience for the customer. Service innovation involves value creation for clients, organizations or other actors, through the development of new processes or services offers (Patricio, Gustafsson, & Fisk, 2018) The word FinTech is a combination of the terms "financial" and "technology", and is intended to denote the use of technology to deliver a financial solution (Puschmann, 2017).…”

Section: Introductionmentioning

confidence: 99%

Understanding FinTech Ecosystem Evolution Through Service Innovation and Socio-technical System Perspective

Castro

Rodrigues

Teixeira

2020

Exploring Service Science

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In the context of the studies on FinTech, this empirical research aims to understand the evolution of the FinTechs ecosystem and to strengthen its characterization through the perspectives of socio-technical system theory and service innovation. For this analysis, the case study research methodology was used, in which 11 FinTechs startups that are part of the Portuguese and Brazilian context were considered. Primary data were collected through semi-structured interviews with C-level and startups employees, while secondary data were obtained through reports from large consulting firms and public relations materials from FinTechs startups. The results show the evolution of the FinTechs ecosystem from the perspective of socio-technical system theory and service innovation. For socio-technical system perspective, it was possible to understand the evolution of this ecosystem from the roles of social, technological and organizational actors. Thus, it can be understood how each stakeholder influences the development of FinTechs business, in the creation of new products and services. For service innovation perspective, it was possible to understand the dynamics of the evolution of the FinTechs ecosystem and its results. The academic contribution to service innovation is present during the innovation process of the studied FinTechs, where they were identified as the stakeholders who are part of the ecosystem, impact on the incremental, radical, improvement and recombinative innovations of startups. The contribution to the socio-technical system theory is present during the use of the structure that allows understanding the development of the ecosystem and social, technological and organizational actors. Finally, the contribution to management can be defined as the characterization of the FinTechs ecosystem for the entrepreneurs who work with these startups to better understand the environment in which they are inserted.

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Fintech

Cited by 416 publications

References 15 publications

Why fintechs cooperate with banks—evidence from germany

Why fintechs cooperate with banks—evidence from germany

Will FinTech make regional banks superfluous for small firm finance? Observations from soft information‐based lending in Germany

Understanding FinTech Ecosystem Evolution Through Service Innovation and Socio-technical System Perspective

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