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Understanding the Fintech Wave: A Search for a Theoretical Explanation

Author

Listed:
  • Anita Mirchandani

    (Adjunct Professor, Heriot Watt University, Dubai Campus, UAE,)

  • Namrata Gupta

    (University of Wollongong, Dubai Campus, UAE,)

  • Esinath Ndiweni

    (Heriot Watt University, Dubai Campus, UAE)

Abstract

The recent rise in the number of Fintech companies is set to transform the financial services industry on a global scale. Fintech companies create more competitive advantages in the financial market by providing faster services in the field of payment, financial consultancy, lending, and investment. Many countries have joined the bandwagon of adopters; however, little is known about the factors behind their success. Therefore, this paper attempts to investigate the key factors that underpin the success of Fintech across the various financial sectors and highlight the challenges they pose to traditional banks. Due to limited scholarly work on the subject the paper conducts a meta syntheses of ten published global survey reports conducted by consultants such as PwC (2016; 2017; 2019), Capgemini (2017), Ernst and Young (2017; 2019); KPMG (2019) etc. and relevant data from International Monetary Fund and World Bank report (2019). We identified the key enablers and disablers of Fintech and classified them into macro and micro factors. We concluded that the success of Fintech is context dependent on the political, cultural and environmental factors in the adopting nation.

Suggested Citation

  • Anita Mirchandani & Namrata Gupta & Esinath Ndiweni, 2020. "Understanding the Fintech Wave: A Search for a Theoretical Explanation," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 331-343.
    • Handle: RePEc:eco:journ1:2020-05-37
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Treu, Johannes, 2022. "FinTech, General Purpose Technology und Wohlfahrt," IU Discussion Papers - Business & Management 5 (Juni 2022), IU International University of Applied Sciences.
    2. Luo, Shunjun & Liang, Junfen, 2023. "Green economic recovery hindered by increased carbon intensity: Evidence from China," Resources Policy, Elsevier, vol. 86(PB).
    3. Luiz Antonio Joia & Rodrigo Proença, 2022. "The social representation of fintech from the perspective of traditional financial sector professionals: evidence from Brazil," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-27, December.

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    More about this item

    Keywords

    Fintech; Macro and Micro Enablers; Context Dependent; Disruptors;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services

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