The impact of the FinTech revolution on the future of banking: Opportunities and risks

Murinde, Victor; Rizopoulos, Efthymios; Zachariadis, Markos

doi:10.1016/j.irfa.2022.102103

Cited by 290 publications

(128 citation statements)

References 41 publications

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“…The fulfillment of firms' ESG social responsibility also lies in meeting the demands of stakeholders, creating a good external environment for corporate development, reducing potential risks of firms (Esposito De Falco et al, 2021), and thus promoting corporate ESG to engage in information disclosure. Furthermore, the development of digital inclusive finance has improved the corporate financing environment (Sedunov, 2017), reduced the cost of external financing, facilitated access to external financing (Fuster et al, 2019), helped enhance the market competitiveness of enterprises, and increased corporate value (Murinde et al, 2022). Thus, it has allowed firms to have more liquidity and cash flow and increased the level of shareholder wealth (Thakor, 2020), providing more support for enterprises to engage in ESG activities and promoting firms to engage in more ESG behaviors, including ESG information disclosure.…”

Section: Theoretical Analysis and Hypothesis Developmentmentioning

confidence: 99%

“…Additionally, a growing strand of literature has discussed how digital financial inclusion alleviates corporate financing constraints and information asymmetry, potentially affecting firms' ESG disclosure (Fuster et al, 2019;Murinde et al, 2022). Hence, with the boosting of digital financial inclusion, it is puzzling that few studies have focused on ESG disclosure consequences caused by digital financial inclusion at the firm level (Siew et al, 2016;Zhang et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

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Does digital financial inclusion matter for firms’ ESG disclosure? Evidence from China

Wang

2022

Front. Environ. Sci.

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Using a sample of Chinese listed firms during 2010–2018, this paper examines the relationship between digital financial inclusion and firms’ ESG disclosure. The results show that 1) digital financial inclusion can significantly promote firms’ ESG disclosure; 2) the promotion effect of digital financial inclusion on firms’ ESG disclosure occurs mainly through channels including the coverage breadth and usage depth; and 3) for firms with higher financing constraints and state-owned enterprises, the promotion effect of digital financial inclusion on firms’ ESG disclosure is more prominent. This paper provides relevant conclusions and insights for promoting firms’ ESG information disclosure, integrating the digital economy, and encouraging innovation development.

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Section: Theoretical Analysis and Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Does digital financial inclusion matter for firms’ ESG disclosure? Evidence from China

Wang

2022

Front. Environ. Sci.

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“…As a result of the increasing variety of consumer needs, banks offer advanced features, such as integrated bill payments, credit scoring, and even personalization of banking services at the individual level. In addition, the emergence of multichannel digital finance in banking has in-creased the speed and variety of data received or sent (Ozili, 2018) as an anticipatory step for banks to face and compete against the onslaught of fintech, which potentially undermines the essentials of banking processes (Murinde et al, 2022). Banks thus need to respond more quickly to this exponential data growth through advancing IT infrastructure to take advantage of this data opportunity in data-driven decision-making.…”

Section: Literature Reviewmentioning

confidence: 99%

The state of implementing big data in banking business processes: An Indonesian perspective

Ritchi

Andriani

zulkarnaen

et al. 2022

Banks and Bank Systems

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Notwithstanding the perceived global potentiality, how big data enhances decision-making quality prompts an intriguing inquiry, especially in an increasingly competitive banking environment in developing economies. Building on an industry data-driven framework, this study strives to understand the state of implementing big data in the Indonesian banking sector. A deductively organized descriptive method employing in-depth interviews was conducted with subject matter experts representing Indonesian banking-related areas. The result and the following analysis show the modest status of big data implementation across three major banks and two complementary companies, as indicated by many elements of the framework phases that were found during the early adoption stage. This denotes a steady buy-in across banking business processes as particularly reflected in the framework’s four phases – continuing push to meet the variety aspect (intelligence), structured data architecture domination (design), limited choice of performance indicator for big data value (choice), and customer–corporate vision decoupling (implementation). While Indonesian banks have evidently initiated the big data implementation, further improvement remains imperative for the decision-making process. Accordingly, big data should be tightly coupled with a strong data-driven vision that drives decision-making across intra-firm actors. Handling data omnipresence shall be viewed as the embodiment of a data-driven vision.

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“…Since the banking business relies on trust, companies need a reputation to build customer trust that they will protect customers' money and personal information (Letamendia & Poher, 2020). Therefore, some Digital Banks have the support of large companies with substantial business experience and ecosystem (Murinde et al, 2022), which results in some advantages such as rich data to drive customer insights and acquisition (Verhoef et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…In some countries, this digital branchless bank is called Neo Banks. Digital banks redefine the banking sector at once by showing what the possible future of banking could look like (Murinde et al, 2022). Digital Bank's business model is different from digital applications provided by conventional banks (Fu & Mishra, 2022).…”

Section: Introductionmentioning

confidence: 99%

The Factors Affecting Digital Bank Services Adoption Using Trust as Mediating Variable

Kantika¹,

Kurniasari

Mulyono

2022

JBMR

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The rise of the internet in Indonesia have pushed businesses to speed up the digital transformation of the financial sector, including banking and financial technology. This has led to changes in the structure of the economy and how businesses compete and collaborate. A Digital Bank is one of the business model innovations because it relies on a digital ecosystem. It is important for people to have trust in digital bank services because this digital bank doesn't have a branch office to provide its services, and there aren't adequate regulations to protect data or security system. This study aims to determine what factors influence customers' adoption of a digital bank by analyzing the effects of perceived security, perceived enjoyment, financial literacy, and brand image on the adoption of digital payment services using trust as a mediating variable. This research was conducted using quantitative methods with Digital Bank users as the respondents. The results of the study indicate that perceived security, perceived enjoyment, financial literacy, and brand image have a positive and significant influence on the adoption of digital bank services in Indonesia, where trust variable has the greatest effects on the adoption of Digital Bank services. Therefore, Digital Bank companies need to increase user trust by increasing IT resources, developing attractive and useful digital platforms, and building a good image of the Digital Bank industry as a trusted service.

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The impact of the FinTech revolution on the future of banking: Opportunities and risks

Cited by 290 publications

References 41 publications

Does digital financial inclusion matter for firms’ ESG disclosure? Evidence from China

Does digital financial inclusion matter for firms’ ESG disclosure? Evidence from China

The state of implementing big data in banking business processes: An Indonesian perspective

The Factors Affecting Digital Bank Services Adoption Using Trust as Mediating Variable

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