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Technology-Driven Innovations in Financial Services: The Rise of Alternative Finance

Author

Listed:
  • Gąsiorkiewicz Lech

    (Warsaw University of Technology, Faculty of Management, Warsaw, POLAND)

  • Monkiewicz Jan

    (Warsaw University of Technology, Faculty of Management, Warsaw, POLAND)

  • Monkiewicz Marek

    (Main School of Commerce, Institute of Risk and Insurance, Warsaw, POLAND)

Abstract

Financial systems worldwide are increasingly experiencing the mounting pressure of the technology-based financial innovations. Some of these developments are generating alternative financial structures existing parallelly to the “old” ones, whereas some others are simply replacing the “old” ones. Alternative intermediating institutions are gaining ground vis-à-vis incumbents, relying on their technological and market supremacy. The space of traditional financial intermediation requires new solutions to be more competitive. Some technological solutions provide additionally for the partial or entire disintermediation of the financial services, thus removing some existing transaction costs and matching directly economic agents. Digitalization and datafication, coupled with artificial intelligence, are offering immense new operational opportunities and economic benefits. On the other hand, they are also the source of new risks to the financial and economic systems, financial stability, national security, and consumer well-being, which need to be properly addressed. We review in this paper principal components of the current stream of technology-based financial innovations and their main drivers, as well as discuss major strategic issues and impacts that we are facing in this area.

Suggested Citation

  • Gąsiorkiewicz Lech & Monkiewicz Jan & Monkiewicz Marek, 2020. "Technology-Driven Innovations in Financial Services: The Rise of Alternative Finance," Foundations of Management, Sciendo, vol. 12(1), pages 137-150, January.
    • Handle: RePEc:vrs:founma:v:12:y:2020:i:1:p:137-150:n:11
    DOI: 10.2478/fman-2020-0011
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    References listed on IDEAS

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    More about this item

    Keywords

    alternative finance; financial innovations; FinTech; technology enablers; digitalization; financial consumer protection;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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