FinTech - A Step Ahead or a Force of Creative Destruction in Finance

• Autorzy: Zofia Pasterny
• Języki publikacji: EN

Abstrakty

EN

The purpose of the article/hypothesis. This article aims to introduce the concept of creative destruction in relation to transformative solutions in finance based on the example of FinTech and innovative technologies with special emphasis on blockchain and cloud computing. As a means to reach its objective this paper analyzes in depth the concept of creative destruction originated by Schumpeter in 1940s and translates it to modern business financial environment to present the reader with double-sided effects of introduced changes, their unique and unprecedented character both from the perspective of FinTech and traditional financials intermediares. Methodology. In order to research the effects of innovations on the financial markets the critical study of the foreign literature will be conducted. Results of the research. The conducted considerations displayed a parallel between innovations introduced by FinTech and actions undertaken by traditional financial institutions in order to remain strong players on the financial market. Even though solutions provided by start-ups may debilitate gained trust, which is one of the fundamental cores of finance, and raise questions related to breach of established regulations, they support the market with increased efficiency and variability of products and services. However, it can be easily perceived that advantages of introduced solutions outweigh possible dangers, and financial intermediaries, especially banks, decide to operate on the basis of the enagament model that supposes a synergy with start-up to blend favourable aspects of both of them including banks' well-established repute and trust along with FinTech's innovative potential. (original abstract)

Słowa kluczowe

EN

Innovations; FinTech; Blockchain technology; Cloud computing

PL

Innowacje; Technologie finansowe; Technologia blockchain; Chmura obliczeniowa

• Czasopismo: Finanse i Prawo Finansowe
• Rocznik: 2021
• Tom: 2 (30)
• Strony: 87--102

Twórcy

autor

Zofia Pasterny

• Uniwersytet Ekonomiczny w Katowicach

Bibliografia

• Arjunwadkar, P., (2018). Fintech: The Technology Driving Disruption In The Financial Services Industry. Auerbach Publications.
• BCBS, (2018). Implications of fintech developments for banks and bank supervisors. Basel Comittee on Banking Supervision, https://www.bis.org/bcbs/publ/d431.pdf [Accessed: 01.12.2020].
• Coughlin, J.F., (2006). Connected Health and the Creative Destruction of Healthcare. AgeLab 06- 01. Cambridge, Massachusetts: Massachusetts Institute of Technology.
• Deloitte (2018). Crunch Time IV - Blockchain for finance.
• EBF, (2020). The use of Cloud Computing by Financial Institutions. European Banking Federation, ebf.eu.
• FRED economic data, https://fred.stlouisfed.org/ [Accessed 28.10.2020].
• Gupta, P., Tham, T. (2019). Fintech, Berlin, Boston: De Gruyter.
• INGWB.com, https://view.ingwb.com/six-technologies-changing-finance [Accessed: 22.11.2020].
• KPMG, (2017). Value of fintech. The City of London Corporation. October 2017.
• Lockwood, M. and Lent, A. (2010). Creative Destruction: Placing innovation at the heart of progressive economics. London: IPPR.
• Lorente, J.J. and Schmukler, S.L. (2018). The Fintech Revolution: A Threat to Global Banking? International Political Economy: Investment & Finance eJournal.
• Markowich, S. (2016). Creative Destruction in Bank, https://www.theclearinghouse.org/ publications/2016/2016-q1-banking-perspective/creative-destruction-in-banking [Accessed: 29.10.2020].
• Monem, H.A. (2019). Using Blockchain in Financial Services. Arab Monetary Fund, 54/2019.
• Navaretti, G.B., Calzolari, G., Mansilla-Fernández, J.M., Pozzolo, A.F. (2018). Fintech and Banking. Friends or Foes? European Economics: Macroeconomics & Monetary Economics eJournal.
• NYTimes, https://www.nytimes.com/2000/06/10/your-money/IHT-half-a-century-latereconomists-creative-destruction-theory-is.html [Accessed: 28.10.2020].
• OECD, https://www.oecd.org/coronavirus/policy-responses/coronavirus-covid-19-sme-policyresponses-04440101/. OECD (2020) Coronavirus (COVID-19): SME policy responses [updated on July 15th, 2020], oecd.org [Accessed 31.10.2020].
• Olley, G. and Pakes, A. (1996). The Dynamics of Productivity in the Telecommunications Equipment Industry. Econometrica, 64(6), doi:10.2307/2171831.
• Perkins, D.W., Webel, B., Cooper, C.R., Getter, D.E., Jaikaran, C., Labonte, M., Miller, R.S., Scott, A.P., Shorter, G. and Su, E. (2020). Fintech: Overview of Innovative Financial Technology and Selected Policy Issues, CRS Report R46332.
• PWC, (2016) Blurred lines: How fintech is shaping financial services, Global Fintech Report March 2016.
• PWC, (2019) Crossing the lines: How fintech is propelling FS and TMT firms out of their lanes, Global Fintech Report 2019.
• Ricci, D. (2020). Creative Destruction. In A Political Science Manifesto for the Age of Populism: Challenging Growth, Markets, Inequality and Resentment (pp. 45-60). Cambridge: Cambridge University Press.
• Riemer, K., Hafermalz, E., Roosen, A., Boussand, N., Aoufi, H.E., Mo, D., and Kosheliev, A. (2017). The Fintech Advantage: Harnessing digital technology, keeping the customer in focus. University of Sydney, Business School and Capgemini.
• Rojas, L. (2016). N° 24. La revolución de las empresas FinTech y el futuro de la Banca. Disrupción tecnológica en el sector financiero. Caracas: CAF.
• Rosati, P. and Cuk, T., (2019). Blockchain Beyond Cryptocurrencies: FinTech and Strategy in the 21st Century.
• Schumpeter, J. A. (1983). Theory of Economic Development. New York: Routledge, ISBN: 978-0- 87855-698-4, The Fundamental Phenomenon of Economic Development, para. 1 and 2.
• Schwab, K. (2016). The Fourth Industrial Revolution. Geneva: World Economic Forum.
• The World Bank, (2016) World Development Report 2016: Digital Dividends, worldbank.org. https://www.worldbank.org/en/publication/wdr2016 [Accessed: 29.11.2020].
• Xavier-Bender, G. (2014). Creative destruction in energy sector - from distruption to transformation. Creative destruction in the energy sector paper series 2014. The German Marshall Fund of the United States. Chapter 1.

Identyfikatory

DOI

10.18778/2391-6478.2.30.06