The Fintech industry: Crowdfunding in context

Photo : The Fintech industry: Crowdfunding in context

This chapter presents how the financial services sector, especially banking, was a driver for ICT development in the last quarter of the twentieth century and early years of this century. But several phenomena happened on technological, social, and financial fronts in the second half of the last decade that led banks to ‘get their eyes off the ball’ and open the window for a whole new industrial sector to emerge, FinTech.

This chapter analyses the phenomenon with the objective of answering: Why did FinTech emerge as an industrial sector, independent of banking? How is the FinTech industry organized and where does crowdfunding fit in? The chapter identifies three external forces that acted upon the banking system and created the conditions for the FinTech sector to emerge.

It also looks at the FinTech sector from an industrial organization perspective and proposes a framework connecting financial services functionality and technological applications.

The research of Paul Griffiths.

Author(s)
  • Photo :

    Paul Griffiths Paul Griffiths is a Professor of Finance. He joined EM Normandie in 2017. He was awarded a DBA Business Administration from Henley Management College/Brunel University in 2005. His thesis is on aligning information technology with business strategy in banks. His research interests are fintech, governance, artificial intelligence and blockchain in the banking sector. He is the Academic Director of M2/MSc. Banking, Finance & Fintech at Oxford.

Photo : Acceptance of digital investment solutions: The case of robo advisory in Germany

Acceptance of digital investment solutions: The case of robo advisory in Germany

The financial services landscape is undergoing substantial change due to technological innovation and digitalization. The market entry of FinTechs (i.e. technology-based start-ups) intensifies competition in the financial industry: Banks struggle with innovation due to their legacy systems and the mindset of the organization where digitalization is not the top priority on the list. FinTechs on […]

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