IDEAS home Printed from https://ideas.repec.org/a/pal/jofsma/v28y2023i3d10.1057_s41264-022-00161-0.html
   My bibliography  Save this article

The transformative potential of banking service domains with the emergence of FinTechs

Author

Listed:
  • Payam Hanafizadeh

    (Allameh Tabataba’i University)

  • Mojdeh Gerami Amin

    (Allameh Tabataba’i University)

Abstract

Most activities of FinTech companies in the real world are limited to a variety of banking services such as payment and funds transfer, while the scope of banking services is much broader than the current activities of FinTech companies. In recent years, extensive research has also been conducted on how FinTech companies contribute to the provision of banking services. The present study identifies ideas for new and innovative areas of FinTech companies’ activity by reviewing the relevant literature. These areas are categorized using the Banking Industry Architecture Network (BIAN) service landscape and are identified and described through thematic analysis. The outcome of this study is a model which reveals that the main service domains belong to the “banking operations and execution,” “sales and services,” “risk and compliance,” “business support,” and “reference data.” According to the findings of the present research, FinTech companies have the capability to provide banking services in 22 domains out of 36 BIAN domains. Theoretical contributions and comparative analysis are discussed.

Suggested Citation

  • Payam Hanafizadeh & Mojdeh Gerami Amin, 2023. "The transformative potential of banking service domains with the emergence of FinTechs," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 411-447, September.
    • Handle: RePEc:pal:jofsma:v:28:y:2023:i:3:d:10.1057_s41264-022-00161-0
    DOI: 10.1057/s41264-022-00161-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41264-022-00161-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41264-022-00161-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michal Brzezinski, 2015. "Power laws in citation distributions: evidence from Scopus," Scientometrics, Springer;Akadémiai Kiadó, vol. 103(1), pages 213-228, April.
    2. Anjum Razzaque & Richard Thomas Cummings & Magdalena Karolak & Allam Hamdan, 2020. "The Propensity to Use FinTech: Input from Bankers in the Kingdom of Bahrain," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 19(01), pages 1-22, March.
    3. Christian Haddad & Lars Hornuf, 2021. "The Impact of Fintech Startups on Financial Institutions' Performance and Default Risk," CESifo Working Paper Series 9050, CESifo.
    4. Lin, Bou-Wen, 2007. "Information technology capability and value creation: Evidence from the US banking industry," Technology in Society, Elsevier, vol. 29(1), pages 93-106.
    5. Lee, Chi-Chuan & Li, Xinrui & Yu, Chin-Hsien & Zhao, Jinsong, 2021. "Does fintech innovation improve bank efficiency? Evidence from China’s banking industry," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 468-483.
    6. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    7. Payam Hanafizadeh & Mohammad Reza Harati Nik, 2020. "Configuration of Data Monetization: A Review of Literature with Thematic Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 17-34, March.
    8. Liu, Jiajia & Li, Xuerong & Wang, Shouyang, 2020. "What have we learnt from 10 years of fintech research? a scientometric analysis," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    9. Jagtiani, Julapa & Lemieux, Catharine, 2018. "Do fintech lenders penetrate areas that are underserved by traditional banks?," Journal of Economics and Business, Elsevier, vol. 100(C), pages 43-54.
    10. Buchak, Greg & Matvos, Gregor & Piskorski, Tomasz & Seru, Amit, 2018. "Fintech, regulatory arbitrage, and the rise of shadow banks," Journal of Financial Economics, Elsevier, vol. 130(3), pages 453-483.
    11. Sanjiv R. Das, 2019. "The future of fintech," Financial Management, Financial Management Association International, vol. 48(4), pages 981-1007, December.
    12. Francisco Linan & Alain Fayolle, 2015. "A systematic literature review on entrepreneurial intentions : citation, thematic analyses, and research agenda," Post-Print hal-02313298, HAL.
    13. Gozman, Daniel & Liebenau, Jonathan & Mangan, Jonathan, 2018. "Innovation mechanisms of fintech start-ups: insights from SWIFT Innotribe competition," LSE Research Online Documents on Economics 86495, London School of Economics and Political Science, LSE Library.
    14. Long Chen, 2016. "From Fintech to Finlife: the case of Fintech Development in China," China Economic Journal, Taylor & Francis Journals, vol. 9(3), pages 225-239, September.
    15. Paulina Roszkowska, 2020. "Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 17(2), pages 164-196, September.
    16. Marko Jakšič & Matej Marinč, 2019. "Relationship banking and information technology: the role of artificial intelligence and FinTech," Risk Management, Palgrave Macmillan, vol. 21(1), pages 1-18, March.
    17. Rainer Alt & Roman Beck & Martin T. Smits, 2018. "FinTech and the transformation of the financial industry," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(3), pages 235-243, August.
    18. Bollaert, Helen & Lopez-de-Silanes, Florencio & Schwienbacher, Armin, 2021. "Fintech and access to finance," Journal of Corporate Finance, Elsevier, vol. 68(C).
    19. Tatiana Zalan & Elissar Toufaily, 2017. "The Promise of Fintech in Emerging Markets: Not as Disruptive," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 11(4), December.
    20. Peter Gomber & Jascha-Alexander Koch & Michael Siering, 2017. "Digital Finance and FinTech: current research and future research directions," Journal of Business Economics, Springer, vol. 87(5), pages 537-580, July.
    21. Lee, In & Shin, Yong Jae, 2018. "Fintech: Ecosystem, business models, investment decisions, and challenges," Business Horizons, Elsevier, vol. 61(1), pages 35-46.
    22. Artie W. Ng & Benny K.B. Kwok, 2017. "Emergence of Fintech and cybersecurity in a global financial centre," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 25(4), pages 422-434, November.
    23. Mark A Chen & Qinxi Wu & Baozhong Yang, 2019. "How Valuable Is FinTech Innovation?," Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 2062-2106.
    24. Anagnostopoulos, Ioannis, 2018. "Fintech and regtech: Impact on regulators and banks," Journal of Economics and Business, Elsevier, vol. 100(C), pages 7-25.
    25. Shim, Yongwoon & Shin, Dong-Hee, 2016. "Analyzing China’s Fintech Industry from the Perspective of Actor–Network Theory," Telecommunications Policy, Elsevier, vol. 40(2), pages 168-181.
    26. Klus, Milan F. & Lohwasser, Todor S. & Holotiuk, Friedrich & Moormann, Jürgen, 2018. "Strategic alliances between banks and fintechs for digital innovation: Motives to collaborate and types of interaction," Discussion Papers of the Institute for Organisational Economics 6/2018, University of Münster, Institute for Organisational Economics.
    27. Cynthia Weiyi Cai, 2018. "Disruption of financial intermediation by FinTech: a review on crowdfunding and blockchain," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 58(4), pages 965-992, December.
    28. Inna Romanova & Simon Grima & Jonathan Spiteri & Marina Kudinska, 2018. "The Payment Services Directive II and Competitiveness: The Perspective of European Fintech Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 3-22.
    29. Sheng, Tianxiang, 2021. "The effect of fintech on banks’ credit provision to SMEs: Evidence from China," Finance Research Letters, Elsevier, vol. 39(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guo, Junyan & Fang, Hanqing & Liu, Xuexin & Wang, Cizhi & Wang, Yuan, 2023. "FinTech and financing constraints of enterprises: Evidence from China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 82(C).
    2. Yi Sun & Shihui Li & Rui Wang, 2023. "Fintech: from budding to explosion - an overview of the current state of research," Review of Managerial Science, Springer, vol. 17(3), pages 715-755, April.
    3. Hiranya Dissanayake & Catalin Popescu & Anuradha Iddagoda, 2023. "A Bibliometric Analysis of Financial Technology: Unveiling the Research Landscape," FinTech, MDPI, vol. 2(3), pages 1-16, August.
    4. Lei Xu & Qian Liu & Bin Li & Chen Ma, 2022. "Fintech business and firm access to bank loans," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4381-4421, December.
    5. Luo, Sumei & Sun, Yongkun & Yang, Fan & Zhou, Guangyou, 2022. "Does fintech innovation promote enterprise transformation? Evidence from China," Technology in Society, Elsevier, vol. 68(C).
    6. Tianlei Pi & Haoxuan Hu & Jingyi Lu & Xue Chen, 2022. "The Analysis of Fintech Risks in China: Based on Fuzzy Models," Mathematics, MDPI, vol. 10(9), pages 1-13, April.
    7. Wang, Xiaoting & Hou, Siyuan & Kyaw, Khine & Xue, Xupeng & Liu, Xueqin, 2023. "Exploring the determinants of Fintech Credit: A comprehensive analysis," Economic Modelling, Elsevier, vol. 126(C).
    8. Pacelli, Vincenzo & Miglietta, Federica & Foglia, Matteo, 2022. "The extreme risk connectedness of the new financial system: European evidence," International Review of Financial Analysis, Elsevier, vol. 84(C).
    9. Ahmet F. Aysan & Zhamal Nanaeva, 2022. "Fintech as a Financial Disruptor: A Bibliometric Analysis," FinTech, MDPI, vol. 1(4), pages 1-22, December.
    10. Qian Chen & Chuang Shen, 2024. "How FinTech Affects Bank Systemic Risk: Evidence from China," Journal of Financial Services Research, Springer;Western Finance Association, vol. 65(1), pages 77-101, February.
    11. Hong, Liu & Nikbakht, Ehsan & Zhou, Tianpeng, 2023. "Does product market competition affect the adoption of FinTech by non-financial firms?," Finance Research Letters, Elsevier, vol. 54(C).
    12. Md. Morshadul Hasan & Lu Yajuan & Appel Mahmud, 2020. "Regional Development of China’s Inclusive Finance Through Financial Technology," SAGE Open, , vol. 10(1), pages 21582440199, February.
    13. Campanella, Francesco & Serino, Luana & Battisti, Enrico & Giakoumelou, Anastasia & Karasamani, Isabella, 2023. "FinTech in the financial system: Towards a capital-intensive and high competence human capital reality?," Journal of Business Research, Elsevier, vol. 155(PA).
    14. Chen, Wen & Wu, Weili & Zhang, Tonghui, 2023. "Fintech development, firm digitalization, and bank loan pricing," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).
    15. Zhao, Jinsong & Li, Xinghao & Yu, Chin-Hsien & Chen, Shi & Lee, Chi-Chuan, 2022. "Riding the FinTech innovation wave: FinTech, patents and bank performance," Journal of International Money and Finance, Elsevier, vol. 122(C).
    16. Polasik, Michał & Huterska, Agnieszka & Iftikhar, Rehan & Mikula, Štěpán, 2020. "The impact of Payment Services Directive 2 on the PayTech sector development in Europe," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 385-401.
    17. Santiago Carbó-Valverde & Pedro J. Cuadros-Solas & Francisco Rodríguez-Fernández, 2022. "Entrepreneurial, institutional and financial strategies for FinTech profitability," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-36, December.
    18. Sánchez, Marisa A., 2022. "A multi-level perspective on financial technology transitions," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    19. Roberto Moro-Visconti & Salvador Cruz Rambaud & Joaquín López Pascual, 2020. "Sustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuation," Sustainability, MDPI, vol. 12(24), pages 1-24, December.
    20. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jofsma:v:28:y:2023:i:3:d:10.1057_s41264-022-00161-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.