2017
DOI: 10.1186/s40854-017-0076-7
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The impact of FinTech start-ups on incumbent retail banks’ share prices

Abstract: Background: This study aims to clarify the role of FinTech digital banking start-ups in the financial industry. We examine the impact of the funding of such start-ups on the stock returns of 47 incumbent US retail banks for 2010 to 2016. Methods: To capture the importance of FinTech start-ups, we use data on both the dollar-volume of funding and number of deals. We relate these to the stock returns with panel data regression methods. Results: Our results indicate a positive relationship exists between the grow… Show more

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Cited by 139 publications
(149 citation statements)
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References 30 publications
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“…Narayan and Sahminan (2018) present empirical evidence that, in Indonesia, FinTech has the capacity to reduce inflation and strengthen the rupiah against the US dollar. Li et al (2017) find that the effect of FinTech is positive on bank returns, implying complementarity between traditional banks and FinTech.…”
Section: Introductionmentioning
confidence: 83%
See 1 more Smart Citation
“…Narayan and Sahminan (2018) present empirical evidence that, in Indonesia, FinTech has the capacity to reduce inflation and strengthen the rupiah against the US dollar. Li et al (2017) find that the effect of FinTech is positive on bank returns, implying complementarity between traditional banks and FinTech.…”
Section: Introductionmentioning
confidence: 83%
“…While other studies have examined the FinTech industry, only a few have investigated its economic and financial implications, and there are no studies on the impact of FinTech on economic growth. Several authors show that, as a new and innovative business, FinTech is disrupting the financial services industry (Li et al, 2017;Zalan and Toufaily, 2017). Narayan and Sahminan (2018) present empirical evidence that, in Indonesia, FinTech has the capacity to reduce inflation and strengthen the rupiah against the US dollar.…”
Section: Introductionmentioning
confidence: 99%
“…They considered ATMs, telephone banking, internet banking, and mobile banking as key channels of electronic banking. Recently, Li et al (2017) performed research on the effect of digital banking start-ups on the efficiency of the retail banking system in the United States. They discovered that funding digital banking start-ups (FinTech) has a positive effect on a bank's stock returns.…”
Section: Theoretical Background and Hypothesesmentioning
confidence: 99%
“…Especially according to the 2014 report by Gartner, as mobile payment transaction started in Africa and developing nations in Asia, it is expected that mobile payment population will show strong growth until 2016 [11]. To provide simplified mobile payment services to these users and to provide financial services specialized for users and service providers, Financial Technology (Fintech) composing of finance and technology are being developed worldwide [12][13][14]. According to the 2014 report by Accenture, the volume of investment on global Fintech venture companies has increased more than three times in 5 years from $920 million in 2008 to $2.97 billion in 2013.…”
Section: Introductionmentioning
confidence: 99%