FinTech services from BigTech companies

The so‐called BigTech companies Amazon, Alphabet, Apple and Meta and are constantly attempting to grow into new business areas. Due to their expertise in data analysis, they have managed to quickly establish themselves in many industries as digital ecosystems and, as part of this strategy, are also expanding their footprint in financial services. However, the biggest challenge that BigTech companies are facing in financial services is customer acceptance. This paper contributes to the emerging field of digital ecosystems and the acceptance of sensitive services by users. Although the BigTech firms have gained much attention, only little empirical analysis is available. This paper aims to shed light on the determinants of customer acceptance of BigTech banking services. Based on a survey in Switzerland this research develops an analytic model to identify and test the relevant determinants. The results indicate that the strongest significant influences were found in subjective risk and trust which clearly demonstrates the still‐existing incumbents' advantage over the BigTech companies

Lankidetza ekonomia diruzaintza kudeaketan aplikatzea posible al da?

[EUS] Lan honek lankidetza ekonomiari egingo dio ekarpena, baina orain arte gutxi garatutako ikuspegi batetik, finantza alorretik, eta hain zuzen ere, diruzaintzatik. Lan honetan hainbat enpresen diruzaintza modu elkartu batean kudeatzeko helburuz elkarrekin lan egitea posible dela defendatzen dugu, beti ere enpresak antentzeko helburu duen lankidetza ekonomia ikuspuntutik. Analizatutako hiru kasuak, honako hauek dira: Mondragon Corporation, Arboribus eta Trocobuy. Hiru kasu hauen analisiaren oinarrituz, finantza arloan lankidetza ekonomia posible izateko beharrezkoak diren ezaugarriak aurkezten ditugu: gardentsauna, kudeaketa, elkarren arteko mozkina lortzeko itxaropenak, bermeak, elkarren arteko onura eta konfiantza. Honela, lan honek erakusten du, alde batetik, lankidetza ekonomiaren ahalera orain arte ekonomia paradigma hori gutxi garatu den hainbat alorretan, hala nola, erakundeen diruzaintzan. Bestetik, lan honen bidez agerian geratzen da lankidetza ekonomiak kasu guztietan enpresaren desagregazioa ez dakarrela.[EN] The work contributes to the literature on collaborative economy; but from an underdeveloped perspective that is the field of finance, and specifically of the cash holding. This paper defends the possibility of collaborations to jointly manage the treasury between different companies, always under the prism of the collaborative economy based on the maintenance of the company as an organization. The three cases analyzed are: Mondragon Corporation, Arboribus and Trocobuy. It presents the necessary characteristics from these three cases so that the collaborative economy in the field of finance is possible: transparency, management, expectations of mutual benefit, guarantees, mutual benefit and trust. Thus, this work shows, on the one hand, the potential of the collaborative economy in areas where it currently has little presence; as is the cash holding of the organizations; and on the other hand, that the collaborative economy does not have to suppose in all the cases the disaggregation of the company

Determinants of Fintech and Bigtech lending: the role of financial inclusion and financial development

Credit markets around the world are undergoing digital transformation which has led to the rise in Fintech and Bigtech lending. Fintech and Bigtech lending is the provision of credit by Fintech and Bigtech providers who have more capital, cutting-edge IT systems, worldwide recognition, greater online presence and are able to handle more big data on computers and mobile phones than traditional banks. Fintech and Bigtech lending is growing in importance, but the determinants of Fintech and Bigtech lending have received little attention in the literature. This study investigates the determinants of Fintech and Bigtech lending. The study focused on the effect of financial inclusion and financial development on Fintech and Bigtech lending. Using data for 18 countries from 2013 to 2019 and employing the difference-GMM and 2SLS regression methods, the findings reveal that financial inclusion and financial development are significant determinants of Fintech and Bigtech lending. Financial development is a positive determinant of Fintech and Bigtech lending while financial inclusion has a significant effect on Fintech and Bigtech lending. Also, Fintech and Bigtech lending lead to greater banking sector stability and also poses the risk of rising nonperforming loans. There is also a significant positive correlation between financial development and Fintech and Bigtech lending. These findings add to the emerging literature on the role of Fintech and Bigtech in financial intermediation. This research is significant because it provides insights into the role of financial inclusion and financial development in digital transformation of credit markets

Emergent Regime Complexity and Epistemic Barriers in ‘Bigtech’ Finance

The rise of ‘bigtech’ finance – the provision of payment services and financial intermediation by large digital platforms – poses significant cross-border regulatory challenges with implications for financial stability. Yet despite steps to strengthen regulation at the domestic level, international cooperation in this area remains very limited. Although geopolitical rivalry over digital technology has hindered progress towards agreement on global rules, we know far less about the technical barriers to standard-setting in this new and complex field. To address this, the paper combines scholarship on international regime complexity and transnational knowledge to understand the epistemic challenges of international standard-setting in an ‘emergent’ regime complex. We argue that regulatory cooperation around bigtech is constrained by two main epistemic barriers: cognitive limits to understanding; and the existence of siloed knowledge. Furthermore, we show how international bodies strive to overcome these barriers by generating new transnational knowledge through processes of inscription and orchestration. The paper makes a wider contribution to the ‘epistemic turn’ in IPE by unpacking the contested meanings and practices of standard-setting in new regulatory fields

An overview of the effects of FinTech on the international financial sector

"Financial technology" or "FinTech" has transformed the financial sector, changing how incumbent financial institutions interact with each other and with consumers. The interlinkage of finance and technology has given rise to a new type of digital products and services which are highly demanded by society. This study aims to analyze how the new era of FinTech has emerged in the developed and developing world. FinTech has posed important challenges for market participants such as banks in balancing their potential benefits with the new approaches to technology financial products. The results show that new forms of interaction have appeared between banks and fintech companies for adapting to the need for digitalization. These relationships are affected by challenges raised in these technologies such as regulation or customer privacy breach and are also affected by the presence of other big technological financial players. The findings of this study support the need to modernize the traditional financial institutions for facing the international disruption in the financial paradigm caused by FinTech. <br /

Future Business Models in Financial Services: A Legitimacy-based Perspective

In this conceptual paper, we discuss four future scenarios of the financial industry, illustrating a potential industry configuration. We take a legitimacy-based perspective on future business models, highlighting interdependencies between legitimacy, regulation policy, and industry structure. We conjecture that the Neo Bank scenario is the most probable in the future of Fintech

Evolution of traditional banks: fintech and bigtech as the future of finance

Treball Final de Grau en Finances i Comptabilitat. Codi: FC1049. Curs acadèmic: 2019/2020The objective of this document is to analyse the reason why traditional banks are losing ground and how they are adapting at present technological needs. In so doing, we will show the difficulties banks face on account of two main factors, namely: the huge operating costs and few profits but also challenges for the new competitors coming from the new technological advances. In addition, an overview of the new era of competitors that have appeared due to the technological evolution will be explained: fintech, financial companies, with a new version of online banks and bigtech, companies that take advantage of the worldwide market and their great number of customers. It will be shown how they manly work but also their limitations regarding to the regulation

Why are international standards not set? Explaining "weak" cases in shadow banking regulation

Why are international regulatory standards not set? While most of the literature focuses on explaining positive cases of standard-setting where international rules are agreed upon, weak or negative cases remain prevalent and yet surprisingly under-explored. To explain these cases in the area of financial services, we integrate an inter-state explanation, which focuses on competition between major jurisdictions, with a transgovernmental explanation, which relates to conflict between different regulatory bodies at the international level. We also consider how these dimensions interact with financial industry lobbying. This allows us to construct a typology differentiating between distinct types of cases concerning international standard-setting: (1) absent standards, (2) non-agreed standards, (3) symbolic standards, and (4) agreed standards. The explanatory leverage of our approach is illustrated through a systematic structured focused comparison of four post-crisis cases related to "shadow banking." The article generates novel insights into regulatory conflicts and the scope conditions for international agreement