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Trends in Financial Innovation: Evidence from Fintech Firms

Author

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  • Omer Unsal
  • Blake Rayfield

Abstract

In 1971, the patent for the Automated Teller Machine (ATM) was awarded to David Wetzel. While possibly not the first application of financial technology, since 1971 time, the innovation in the financial industry has grown beyond expectations. However, most studies in innovation ignore the financial sector altogether. In this study, we investigate financial technology firms and innovation. After identifying firms that are considered financial technology, we collect innovation outcomes such as patents and data breaches associated with those firms. We show that patent activity has enjoyed modest growth year over year, however firms still have challenges to overcome such as market risk and data security. This study serves as a perspective on financial technology. This paper is also forthcoming in the International Finance Review.

Suggested Citation

  • Omer Unsal & Blake Rayfield, 2019. "Trends in Financial Innovation: Evidence from Fintech Firms," NFI Working Papers 2019-WP-03, Indiana State University, Scott College of Business, Networks Financial Institute.
    • Handle: RePEc:nfi:nfiwps:2019-wp-03
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    References listed on IDEAS

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    Cited by:

    1. B. Senakumari Arunnima & Dharmaseelan Bijulal & R. Sudhir Kumar, 2023. "Open Innovation Intellectual Property Risk Maturity Model: An Approach to Measure Intellectual Property Risks of Software Firms Engaged in Open Innovation," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    2. Wei Li & Serhat Yüksel & Hasan Dinçer, 2022. "Understanding the financial innovation priorities for renewable energy investors via QFD-based picture fuzzy and rough numbers," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-30, December.
    3. Jelena Kabulova & Jelena Stankevičienė, 2020. "Valuation of FinTech Innovation Based on Patent Applications," Sustainability, MDPI, vol. 12(23), pages 1-15, December.

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    More about this item

    Keywords

    Financial Technology; Financial Innovation; Patents; Data Breach;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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