FINTECHS AND THE NEW WAVE OF FINANCIAL INTERMEDIARIES
Type
conference paper
Date Issued
2019
Author(s)
Abstract
The financial services industry is undergoing a massive transformation similar to what was observed when other industries underwent digitization. The FinTech revolution has given rise to a vast number of technology-oriented market entrants who challenge many parts of the financial services industry. This research seeks to provide a better understanding of how FinTechs across various business functions fundamentally impact the value chain in this industry. To this end, we built on top of financial intermediation theory, and developed a taxonomy of FinTechs’ intermediating functions. The following hierarchical clustering analysis identified six archetypes of FinTech intermediaries as observed in the real world, i.e. the different ways in which FinTechs across business functions act as financial intermediaries by transforming assets, reducing transaction cost, and alleviating information asymmetries. Finally, we discuss how FinTechs impact financial
intermediation in itself, and to what extent the notion of FinTechs disintermediating the financial value chain is accurate.
intermediation in itself, and to what extent the notion of FinTechs disintermediating the financial value chain is accurate.
Language
English
Keywords
FinTech
Financial Intermediation
Taxonomy Development
Cluster Analysis
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
AIS eLibrary
Pages
14
Event Title
Pacific Asia Conference on Information Systems (PACIS 2019)
Event Location
Xi'an, China
Event Date
8.-12. Juli 2019
Subject(s)
Division(s)
Eprints ID
259703
File(s)![Thumbnail Image]()
Name
2247_FinTechs and the New Wave of Financial Intermediaries_PACIS 2019.pdf
Size
466.09 KB
Format
Adobe PDF
Checksum (MD5)
97c0dcae636d80c1e601b00963c56df5