scholarly journals Financial regulation in the age of the platform economy

2021 ◽  
Author(s):  
Barry Eichengreen
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Financial Regulation ◽  
Consumer Experience ◽  
Dominant Position ◽  
Customer Data ◽  
Scalable Networks ◽  
New Business ◽  
Potential Benefits ◽  
Start Ups

AbstractPlatform businesses allow for collaboration with nontraditional partners and bring together different categories of customers, in the financial context savers and investors or lenders and borrowers, creating large, scalable networks of users. Their entry into finance promises potential benefits to consumers in the form of new products, lower prices, wider choice, and enhanced consumer experience. At the same time, their new business models and technologies potentially threaten the dominant position of traditional financial services providers and create challenges for regulators. Platform businesses can use their preferential access to customer data to skim off high-quality loans, leaving only low-quality customers for other lenders. Their ability to offer complementary nonfinancial services that cannot be supplied by FinTech start-ups and banks can make it difficult or unattractive for customers to switch to alternative providers. This danger is especially acute when BigTech firms have monopoly power in other markets that complement financial services.

Fintech Challenges and Outlook in India

2021 ◽  
pp. 136-153
Author(s):  
Neeta Baporikar
Keyword(s):  
Literature Review ◽  
Financial Services ◽  
Business Models ◽  
The Novel ◽  
Foreign Markets ◽  
Indian Economy ◽  
Exploratory Approach ◽  
New Business ◽  
Start Ups ◽  
New Business Models

Fintech refers to the novel processes and products that become available for financial services due to the digital technological advancements. Fintech includes technologically enabled financial innovation leading to new business models, applications, processes, or products with an associated material effect on financial markets, institutions, and financial services. India is transitioning into a dynamic ecosystem offering Fintech start-ups a platform to grow into billion-dollar unicorns. From tapping new segments to exploring foreign markets, Fintech in India is pursuing multiple targets. The traditionally cash-driven Indian economy has responded well to the Fintech opportunity, primarily triggered by a surge in e-commerce, and Smartphone penetration. However, India's growth is still not comparable in scale to its global counterparts but is stacked well, due to a strong talent pipeline of the tech workforce. Hence, adopting an exploratory approach, based on in-depth literature review, the chapter aims to identify the challenges and deliberate on the outlook for Fintech in India.

scholarly journals Customers’ Intentions to Switch to Internet-Only Banks: Perspective of the Push-Pull-Mooring Model

2021 ◽  
Vol 13 (14) ◽  
pp. 8062
Author(s):  
Cheolho Yoon ◽  
Dongsup Lim
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Information Technologies ◽  
Business Models ◽  
Internet Banking ◽  
Equation Modeling ◽  
Research Model ◽  
Financial Industry ◽  
Banking Services ◽  
New Business

The advent of fintech is blowing a new wind into the financial industry. New business models have been created and consumers’ access to financial services is higher than ever. Internet-only banks based on advanced information technologies have emerged as a leader in the fintech industry, and these banks are fiercely competing with large banks using internet banking as a weapon to attract new customers. The purpose of this study is to explore the factors that influence customers’ intention to switch to internet-only banking services from traditional internet banking services in Korea. To this end, a research model was developed based on the push-pull-mooring model (PPM), which is a migration theory. The research model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings will provide the practitioners of the new internet-only bank with strategic guidance for attracting new customers and help practitioners of traditional banks to retain current customers.

scholarly journals Literature review on business prototypes for digital platform

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Shrutika Mishra ◽  
A. R. Tripathi
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Business Models ◽  
Digital Technologies ◽  
Digital Platform ◽  
New Business ◽  
Start Ups ◽  
The Way

Abstract In today’s world, many digitally enabled start-ups are budding all over the globe because of the fast enhancement in digital technologies. For the establishment of new business, it is necessary to adopt a proper business model which needs to define the way in which the company will provide values and the ways in which the customers can pay for their services. This paper aims to study the various business models being used in today’s marketplace and to provide a better understanding for these business models by having an insight on the attributes.

scholarly journals Digitalization of Financial Services in Albania Under Restricted Measures Covid-19

2020 ◽  
Vol 3 (2) ◽  
pp. 17
Author(s):  
Rezana Balla
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Legal Framework ◽  
Financial Industry ◽  
Technology Innovations ◽  
Markets And Institutions ◽  
New Business ◽  
Job Challenges ◽  
Digital Transactions ◽  
Financial Technology

Under the restricted measures due to the global pandemic Covid-19, like all other services, financial services had difficulties in performing their financial activities. These difficulties are stronger at countries where financial services are denied for a long time. Financial services denial is an issue that has affected not only Albania but small Balkan countries as well. The reasons for this denial are many, but among them we can distinguish the lack of credit experience, as one of the common reasons to be excluded in these countries from the development of the financial sector. Currently, one of the reasons for the financial denial is the emergency created by Covid-19, where physical distancing and other measures taken by governments to restrict movement and services make financial service impossible. Thus, one of the most effective ways to perform financial services remotely is financial technology. Financial technology refers to the possibilities of financial innovation through technology that can result in new business models, applications, processes, or products with an effectiveness related to financial markets and institutions and the provision of financial services. This paper aims to present the challenges of the legal framework and regulatory institutions, to provide recommendations for its improvement, to enable the development of financial technology in the financial market in Albania. The paper address issues such as the Bank of Albania's consideration on the Directive (EU) 2015/2366 On Payment Services (PSD II). What benefits or challenges would its implementation bring? How is the financial industry projected after the implementation of PSD II? What are the biggest job challenges with payment institutions that have not been to the market before or that bring technology innovations? The paper addresses the issue of money laundering through online digital transactions as well.

Cooperation in the financial services sector

2019 ◽  
pp. 417-428
Author(s):  
John Child ◽  
David Faulkner ◽  
Stephen Tallman ◽  
Linda Hsieh
Keyword(s):  
Strategic Alliances ◽  
Financial Services ◽  
Business Models ◽  
Modern Technology ◽  
Services Sector ◽  
Financial Services Sector ◽  
Software Companies ◽  
New Business ◽  
Cooperative Relationship ◽  
Relationship Of

Chapter 19 examines alliances in the financial services sector, focusing on banks as the major players. It describes how banks have traditionally formed strategic alliances with other banks and established deep networks. As such they have made themselves into the sector’s banking blocks. However, since the financial crisis of 2008 the terrain has changed and banks are facing the need to digitize and adopt modern technology to a greater degree than previously. The chapter considers the impact of digitization leading to cooperation between banks and software companies and the development of new business models based on the efficiencies digitization offers. It also looks at the cooperative relationship of banks with the new area characterized as Fintech and the emergence of new financial tools like cryptocurrencies and blockchain.

scholarly journals Regulating Fintech in the EU: the Case for a Guided Sandbox

2020 ◽  
Vol 11 (3) ◽  
pp. 604-629 ◽  
Author(s):  
Wolf-Georg RINGE ◽  
Christopher RUOF
Keyword(s):  
Business Models ◽  
Financial Regulation ◽  
Legal Framework ◽  
Business Practices ◽  
Eu Member States ◽  
Market Participants ◽  
New Business ◽  
Real Market ◽  
Regulatory Problems ◽  
The Eu

New financial technology holds the promise of innovation and competition, challenging established products and services and frequently improving market processes. However, regulation of these new services faces a double challenge: to keep pace with innovation and facilitate new market entries while at the same time understanding and managing the regulatory risks that are involved.At this stage, the existing EU regulatory framework is of little help: the bulk of the present body of financial regulation stems from a different time, with different regulatory problems in mind. EU regulation is also very slow to change and to adapt. Therefore, this paper proposes a regulatory “sandbox” – an experimentation space – as a step towards a regulatory environment where such new business models can thrive. A sandbox would allow market participants to test fintech services in the real market, with real consumers, but under the close scrutiny of the supervisor. The benefit of such an approach is that it fuels the development of new business practices and reduces the “time to market” cycle of financial innovation, while simultaneously safeguarding consumer protection. At the same time, a sandbox allows for mutual learning in a technical field which is sometimes poorly understood, both for firms and for the regulator. This would help to reduce the prevalent regulatory uncertainty for all market participants.In the particular EU legal framework with various layers of legal instruments, the implementation of such a sandbox is not straightforward. In this paper, we propose a “guided sandbox”, operated by the EU Member States, but with endorsement, support, and monitoring by EU institutions. This innovative approach would be somewhat uncharted territory for the EU, and thereby also contribute to the future development of EU financial market governance as a whole.

scholarly journals How to feed The Ferret: Understanding subscribers in the search for a sustainable model of investigative journalism

Journalism ◽  
2017 ◽  
Vol 21 (9) ◽  
pp. 1320-1337
Author(s):  
John Price
Keyword(s):  
Online Survey ◽  
Business Models ◽  
Empirical Work ◽  
Online News ◽  
Investigative Journalism ◽  
Mainstream Media ◽  
New Business ◽  
Political Spectrum ◽  
Start Ups ◽  
New Business Models

The Ferret was founded in Scotland in 2015 as a co-operative. Drawing funding from a variety of sources – including grants, crowdfunding, training and events – the organisation relies heavily on subscriptions for its core business model. The Ferret is one of a number of recent digital start-ups seeking to explore new ways of funding and sustaining investigative journalism against a backdrop of declining levels of such journalism from the mainstream media. Despite this, to date there has been very little detailed, empirical work into subscription or membership models of funding journalism. This article begins to address this by presenting the results of an online survey of The Ferret’s subscribers. The findings are discussed in the context of recent work from international scholars about paying for online news and new business models for public interest journalism. The results suggest that subscribers tend to be middle aged or older, to the left of the political spectrum and motivated mainly by a desire to support the production of investigative journalism – rather than gain exclusive access to its content. The article concludes by arguing that recruiting such people offers a potentially sustainable membership model for investigative journalism platforms, whereby journalism for the benefit of society is funded by the few.

scholarly journals Social Payments: Innovation, Trust, Bitcoin, and the Sharing Economy

2017 ◽  
Vol 35 (3) ◽  
pp. 13-33 ◽  
Author(s):  
◽  
Taylor C. Nelms ◽  
Bill Maurer ◽  
Lana Swartz ◽  
Scott Mainwaring
Keyword(s):  
Business Models ◽  
Sharing Economy ◽  
Mobile Platforms ◽  
Novel Technologies ◽  
On Demand ◽  
The Social ◽  
New Business ◽  
Start Ups ◽  
New Business Models ◽  
Rapid Transformation

The payments industry – the business of transferring value through public and corporate infrastructures – is undergoing rapid transformation. New business models and regulatory environments disrupt more traditional fee-based strategies, and new entrants seek to displace legacy players by leveraging new mobile platforms and new sources of data. In this increasingly diversified industry landscape, start-ups and established players are attempting to embed payment in ‘social’ experience through novel technologies of accounting for trust. This imagination of the social, however, is being materialized in gated platforms for payment, accounting, and exchange. This paper explores the ambiguous politics of such experiments, specifically those, like Bitcoin or the on-demand sharing economy, that delineate an economic imaginary of ‘just us’ – a closed and closely guarded community of peers operating under the illusion that there are no mediating institutions undergirding that community. This provokes questions about the intersection of payment and publics. Payment innovators’ attenuated understanding of the social may, we suggest, evacuate the nitty-gritty of politics.

scholarly journals Rola banków i sektora FinTech w świetle implementacji dyrektywy PSD2 ​

2018 ◽  
pp. 159-169
Author(s):  
Jacek Grzywacz ◽  
Ewa Jagodzińska-Komar
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Banking Sector ◽  
Banking System ◽  
Technical Standards ◽  
Innovative Solutions ◽  
New Business ◽  
Close Cooperation ◽  
Changing Role

The aim of the article is to define the prospects for the development of cooperation between the banking sector and FinTech in the context of the implementation of the PSD2 directive. First, attention was drawn to the changing role of banks that have already taken actions to use the opportunities related to the implementation of this EU regulation of the European payments market. It has been pointed out that the opening of the banking system will result in close cooperation with the FinTech sector, so-called API economics, and this will affect the emergence of new business models. Next, new solutions developed in the PSD2 Directive were presented, with reference to new regulatory technical standards between the banking sector and third parties. The last issue raised in the article concerns cooperation between banks and the FinTech sector. Financial institutions should use innovative solutions offered by fintechs and thanks to that they will increase operational efficiency and create products and services better suited to clients' needs. In the next years, it will be possible to observe how the financial services market will change and which entities will play a significant role in it.

scholarly journals EXPLORING SKILLS NEEDED FOR DISRUPTIVE DIGITAL BUSINESS

2020 ◽  
Vol 28 (3) ◽  
pp. 83-112
Author(s):  
Dewi Handayani ◽  
Jann Tjakraatmadja ◽  
Achmad Ghazali
Keyword(s):  
Social Interaction ◽  
Business Models ◽  
Education Technology ◽  
Structured Interviews ◽  
Digital Era ◽  
Analytical Thinking ◽  
Start Up ◽  
New Business ◽  
Core Questions ◽  
Start Ups

Research Purpose – In today’s disruptive digital business era, many new business models, such as digital start-ups, have emerged, and this phenomenon needs workers with particular skills. The aims of this preliminary empirical research paper are to explore and identify the skills needed for disruptive digital business in the Indonesian context, particularly in the Jakarta region. Design/methodology/approach – This qualitative study conducted semi-structured interviews with ten respondents from various types of Indonesian start-ups, such as unicorn start-up, financial technology and education technology, that have been in operation four to 12 years. The interviews were based on five core questions with the purpose of exploring respondents’ experience regarding skills needed and challenges faced at work in disruptive digital business. Observation was conducted at the Education Technology start-up office located in Jakarta with an aim to investigate workplace environment, and triangulation was used to validate the interviews’ results. Findings – The results show that (1) innovativeness, (2) leadership skills, (3) social interaction, (4) initiative mindsets, (5) self-disruption, (6) critical thinking, (7) management, and (8) analytical thinking are eight pivotal skills identified for managing disruptive digital business. Practical implications – Innovativeness, leadership and social interaction are the top three skills that are essential for actors in Indonesian digital start-ups to have competitive advantages in this disruptive digital business era. Original/value – This paper explores skills needed for the disruptive digital era in an Indonesian context.

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