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Digital Finance and FinTech: current research and future research directions

Author

Listed:
  • Peter Gomber

    () (Chair of e-Finance, Goethe University Frankfurt)

  • Jascha-Alexander Koch

    () (Chair of e-Finance, Goethe University Frankfurt)

  • Michael Siering

    () (Chair of e-Finance, Goethe University Frankfurt)

Abstract

Abstract Since decades, the financial industry has experienced a continuous evolution in service delivery due to digitalization. This evolution is characterized by expanded connectivity and enhanced speed of information processing both at the customer interface and in back-office processes. Recently, there has been a shift in the focus of digitalization from improving the delivery of traditional tasks to introducing fundamentally new business opportunities and models for financial service companies. Digital Finance encompasses a magnitude of new financial products, financial businesses, finance-related software, and novel forms of customer communication and interaction—delivered by FinTech companies and innovative financial service providers. Against this backdrop, the research on finance and information systems has started to analyze these changes and the impact of digital progress on the financial sector. Therefore, this article reviews the current state of research in Digital Finance that deals with these novel and innovative business functions. Moreover, it gives an outlook on potential future research directions. As a conceptual basis for reviewing this field, the Digital Finance Cube, which embraces three key dimensions of Digital Finance and FinTech, i.e., the respective business functions, the technologies and technological concepts applied as well as the institutions concerned, is introduced. This conceptualization supports researchers and practitioners when orientating in the field of Digital Finance, allows for the arrangement of academic research relatively to each other, and enables for the revelation of the gaps in research.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:jbecon:v:87:y:2017:i:5:d:10.1007_s11573-017-0852-x
    DOI: 10.1007/s11573-017-0852-x
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    References listed on IDEAS

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    Cited by:

    1. Cuneyt Akcora & Matthew Dixon & Yulia Gel & Murat Kantarcioglu, 2018. "Bitcoin Risk Modeling with Blockchain Graphs," Papers 1805.04698, arXiv.org.
    2. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.

    More about this item

    Keywords

    Digital Finance; FinTech; e-Finance; State of the art; Literature review; Future research opportunities;

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • 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
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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