Top Research Papers on FinTech

A comprehensive study of the FinTech documents not only reviews the current research characteristics and trajectories but also helps scholars find the appropriate research entry point and conduct in-depth research.

Saat ini, perkembangan fintech (financial technology) syariah di Indonesia semakin pesat. Tetapi di sisi lain, terdapat beberapa fenomena dan permasalahan pada fintech konvensional yang memberikan dampak negatif di masyarakat. Oleh karenanaya keberadaan fintech syariah seharusnya dapat menjadi solusi atas fenomena ini. Tujuan dari penelitian ini adalah untuk mengetahui tentang peluang dan tantangan fintech syariah (Teknologi Finansial) di Indonesia. Penelitian ini menggunakan analisis deskriptif dengan pendekatan kualitatif. Teknik analisis data yang digunakan adalah dengan model interaktif. H...

We argue financial technology (FinTech) is the key driver for financial inclusion, which in turn underlies sustainable balanced development, as embodied in the UN Sustainable Development Goals (SDGs). The full potential of FinTech to support the SDGs may be realized with a progressive approach to the development of underlying infrastructure to support digital financial transformation. Our research suggests that the best way to think about such a strategy is to focus on four primary pillars. The first pillar requires the building of digital identity, simplified account opening and e-KYC systems...

Evaluating some nontraditional data is found and evidence suggesting that such data contain valuable information or “crowd wisdom” that links to informational efficiency is found.

Examination of the determinants that influence bank users’ acceptance for Islamic financial technology services by extending the technology acceptance model (TAM) in the Malaysian context reveals that Islamic FinTech’s services acceptance is determined by perceived ease of use, perceived usefulness and also by another variable, which is consumer innovativeness (CI).

The results indicate that the interactive variable of CSR (GOV*SOC) shows insignificant influence on the returns on assets (ROA), returns on equity (ROE), and nominal interest margin profit (NIMP) from dependent variable.

This paper investigates the relationship between FinTech countries' financial stability in a panel of 63 countries from 2006 to 2017. We employed the dynamic panel of System Generalized Method of Moments (GMM) estimator that addresses possible endogeneity. The empirical results indicate that FinTech promotes financial stability through the channels of artificial intelligence, cloud technology, and data technology. Our findings also suggest that bank concentration complements the effect of FinTech on financial stability. In light of these findings, financial institutions should embrace FinTech ...

It is recognised that basic banking operations through FinTech are still not well adopted, necessitating the need to be more open-minded about the global practicalities of FinTech.

Financial inclusion, that is, access of excluded households and small firms to financial products and services, is seen as a way to promote more inclusive growth by providing the previously unbanked with access to means for savings, investment, consumption smoothing, and insurance. Financial technology (Fintech), that is, using software, applications, and digital platforms to deliver financial services to consumers and businesses through digital devices such as smartphones, has become recognized as a promising tool to promote financial inclusion. The present paper investigates the developments...

Fintech and decentralized finance have penetrated all areas of the financial system and have improved financial inclusion in the last decade. In this paper, we review the recent literature on fintech, cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs). There are important implications from the rise of fintech and the introduction of stablecoins and CBDC in recent years. We provide an overview of China’s experience in fintech, focusing on payments, digital banking, fintech lending, and the recent progress on its CBDC pilots (e-CNY). We also discuss important consideratio...

We examine how fintech development affects corporate innovation. Using the city-level fintech index that includes 331 cities, which is constructed based on data from Ant Finance Service Group, we identify the economic mechanisms through which fintech development affects technological innovation. We show that firms that are more financially constrained exhibit a disproportionally higher innovation level in cities with better developed fintech services. We further find that fintech development promotes lending to firms and stimulates R&D investment because internet credit intensifies bank loan c...

Abstract This study investigates the influence of fintech on developments in China’s financial sector across 290 cities and 31 provinces between 2011 and 2018. Using a two-stage least squares instrumental variable regression approach and correcting for cross-sectional dependency, simultaneity, and endogeneity of regressors, the results establish a positive link between fintech and financial development. Our findings show that fintech supports financial sector development by enhancing access (loans), depth (deposits), and savings within China’s financial institutions. We also show that the emer...

Whether FinTech causes the fragility of financial institutions is a controversial issue. Using a panel sample of listed banks from 84 countries, we exploit the introduction of FinTech regulatory sandboxes as an exogenous shock and examine the heterogeneous effect of FinTech on the fragility of financial institutions. We find that (i) a shock to FinTech innovations has no net effect on the fragility of financial institutions when we ignore market characteristics, (ii) promoting FinTech decreases (increases) the fragility of financial institutions in emerging (developed) financial markets, and (...

It is argued that understanding antecedents to the actual use of fintech innovations will lead to deepening financial inclusion, and the findings show that performance and effort expectancy have significant relationship with the intention to use mobile money services.

A key finding is that fintech diffusion and financial inclusion have long-run effects on GDP per capita over and above their short-run impact and the effects of investment in fixed and human capital.

Technology is changing the landscape of the financial sector, increasing access to financial services in profound ways. These changes have been in motion for several years, affecting nearly all countries in the world. During the COVID-19 pandemic, technology has created new opportunities for digital financial services to accelerate and enhance financial inclusion, amid social distancing and containment measures. At the same time, the risks emerging prior to COVID-19, as digital financial services developed, are becoming even more relevant.

This special issue engages in this important academic and policy agenda by presenting a set of seven new papers emanating from four parallel streams of literature related to financial literacy and responsible finance.

Investigating the interrelationship between FinTech, financial inclusion and income inequality for a panel of 140 countries finds that financial inclusion is a key channel through which FinTech reduces income inequality, at all quantile levels, primarily among higher-income countries.

Comparatively, green financing is found most fitting and highly supportive financing tool for energy efficiency among the three and theorists must revisit the transaction system of FinTech and financial inclusion parameters like green bonds forEnergy efficiency attainment.

This paper provides micro-level evidence on how FinTech adoption affects household consumption and consumption inequality. Our hypothesis is that through FinTech's payment facilitation and credit constraint alleviation, higher FinTech adoption by households fosters financial inclusion by promoting consumption. Financial inclusion is especially increased for households that traditionally consumed less, which suggests that FinTech could reduce consumption inequality. By combining region-level FinTech adoption measures with household-level representative data of consumption, we find that higher F...

Purpose The purpose of this paper is to explore the audit-related causes of financial scandals and advice on how emerging technologies can provide solutions thereto. Specifically, this study seeks to look at the facilitators of financial statement fraud and explain specific fintech advancements that contribute to financial information reliability for equity investments. Design/methodology/approach The study uses the case studies of Enron and Arthur Andersen to document the evidence of audit-related issues in historical financial scandals. Then, a comprehensive and interdisciplinary literature ...

Financial technology (FinTech) is widely recognised as important in addressing financial inclusion. However, limited research theorises how new entrants and incumbents work together in FinTech ecosystems to shape financial inclusion. We undertake a theory-generating case study with multilevel interacting organisations in Ghana, where, like many other African countries, the growth in FinTech has led to new opportunities for financial inclusion. We conceptualise three practices, as building blocks at the ecosystem level, through which incumbents and new entrants shape financial inclusion: (1) in...

We document the effects of the COVID-19 pandemic on digital finance and fintech adoption. Drawing on mobile application data from a globally representative sample, we find that the spread of COVID- 19 and related government lockdowns led to a sizeable increase in the rate of finance app downloads. We then analyze factors that may have driven this effect on the demand-side and better understand the “winners” from this digital acceleration on the supply-side. Our overall results suggest that traditional incumbents saw the largest growth in their digital offerings during the initial period, but t...

Management of public finance and economic development is the art by which a nation improves the economic, political and social well-being of its people. The research paper starts from the reality that finance plays an important role in each economy. Nowadays, finance has to manage and adapt to Digital Era. The purpose of this paper is an attempt to identify and encourage managing financial statements through artificial intelligence using XBRL and Blockchain. In many countries, financial and tax authorities encourage the adoption of eXtensible Business Reporting Language (XBRL) and Blockchain. ...

Economic frictions such as information asymmetries and economic forces such as economies of scale and scope give rise to financial intermediaries. These frictions and forces also shape market structure. While technological advances are not new to finance, digital innovation has brought major improvements in connectivity of systems, in computing power and cost, and in newly created and usable data. These improvements have alleviated transaction costs and given rise to new business models and new entrants. As technology has increased information exchange and reduced transaction costs, the produc...

This study investigated the impact of financial technology (FinTech) development on financial stability in an emerging market. By using data from 37 commercial banks in Vietnam for the period 2010-2020, the study found that FinTech development negatively affected financial stability, and market discipline can mitigate this effect. However, heterogeneity analysis further showed that the negative effect of FinTech development on financial stability is stronger when the degree of financial stability is low, and the role of market discipline also becomes more important in such a situation. As anot...

In this paper, we propose a novel approach to examine the risk spillovers between FinTech firms and traditional financial institutions, during a time of fast technological advances. Based on the stock returns of U.S. financial and FinTech institutions, we estimate pairwise risk spillovers by using the Granger causality test across quantiles. We consider the whole distribution: the left tail (bearish case), the right tail (bullish case) and the center of the distribution and construct three types of spillover networks (downside-to-downside, upside-toupside, and center-to-center) and obtain netw...

The Digital Finance/Fintech Action Plan and the Sustainable Finance Strategy both represent important pillars of the current EU policy agenda. Nonetheless, the two areas have been treated as separate for a long time, while they present certain common features and great potential when combined. In particular, Fintech appears able to respond to some shortcomings in the current sustainable finance framework (e. g. access to retail financing, ESG disclosure, verification and ratings, etc.). The relevance of the link between sustainability, finance and technology has also been evidenced by the COVI...

Financial inclusion has gone beyond the rhetoric surrounding social development and financial stability, but also expanding into pathos of arbitrage benefits made from cheap retail deposits by large banks and banks from technologically developed regions. This study investigates whether a higher degree of fintech-based financial inclusion (FFI) intensifies banks’ risk-taking by analysing data from 534 banks from 24 OIC countries. The results indicate that higher degree of FFI controls bank’s risk-taking behaviour. The nexus turns stronger in the post-industrial revolution 4.0 (IR4.0) era. Our r...

It is shown that fintechs have reconfigured financial service delivery by harnessing AI-based data-driven algorithms and cloud and blockchain technologies, and optimizes financial organization and services, economic structures and growth, data analysis, and digital banking performance.

An analytical framework that describes the business model of banks and provides an explanation for existing trends and illustrates how financial intermediation will be impacted by innovative financial technology applications is presented.

In this article, we review the growing literature on financial technology (FinTech) lending—the provision of credit facilitated by technology that improves the customer–lender interaction or used in lenders’ screening and monitoring of borrowers. FinTech lending has grown rapidly, though in developed economies like the United States it still accounts for only a small share of total credit. An increase in convenience and speed appears to have been more central to FinTech lending's growth than improved screening or monitoring, though there is certainly potential for the latter, as is the case fo...

for comments that helped substantially improve the draft.Comments from Alfonso Garcia Mora (World Bank

FinTech service companies in Saudi Arabia face several challenges (i.e., lack of awareness, competition, regulations, data privacy, and cyber security concerns) in motivating their customers to adopt FinTech services in their daily financial activities. Thus, the present study aimed to investigate and understand the consumers’ behavioral intention toward FinTech services in Saudi Arabia. The unified theory of acceptance and use of technology was applied and extended by adding privacy enablers and privacy inhibitors. Partial least square structural equation modeling was applied to test the hypo...

The research indicates that adequate FinTech implementation and alignment with technology management directly influence the performance of the UAE’s banking sector in difficult times.

Corporate sustainability performance (CSP) has recently garnered considerable traction worldwide. Adopting industry 4.0 technologies such as financial technology (Fintech) and leveraging critical organizational resources are of great importance to the sustainability and performance of firms. This study draws upon the ecological modernization theory (EMT) and resource-based view (RBV) to assess the effects of a firm's Fintech Adoption (FA) and Financial Literacy (FL) on different dimensions of its sustainability performance. We also examine the mediating role of Access to Finance (AF) in the as...

This research examines the impact of financial technology innovation on Chinese banks' performance, using both patent data and FinTech development index, by applying a generalized method of moments model to resolve potential endogeneity. While the results show that FinTech innovation reduces banks' profitability and asset quality in the aggregate, a finding more pronounced for large state-owned commercial banks, it improves banks' capital adequacy and management efficiency, though to a smaller degree for policy banks and state-owned commercial banks. Moreover, banks' own specific FinTech capab...

Perceived usefulness and social influence are found to be the key determinant for behavior intention to use FinTech services, with social influence having significant negative influence.

The study recommends prioritizing national ownership, creating an enabling environment for private sector investment, partnering with multilateral development banks and other stakeholders, fostering innovation and digital literacy, and focusing on cost-effective, non-government-guaranteed financing.

Fintech innovations are rapidly transforming the global financial industry and easing the financial inclusion initiatives of microfinance institutions (MFIs). Such technological transformations are expected to promote stability in the financial system and in turn reduce the risk-taking behavior of its main actors. However, there is limited or no empirical evidence to confirm the impact of fintech-based financial inclusion (FinFI) on the risk-taking behavior of Sub-Saharan African MFIs. Thus, we have developed a new index to measure FinFI and empirically assess its role in reducing the risk-tak...