The Fintech Disruption: How Financial Innovation Is Transforming the Banking Industry

Preface
Acknowledgments
Contents
Notes on Contributors
List of Figures
List of Tables
1 Fintech and Banking: An Overview
	Introduction
		Overview of Content
	Part I: Financial Technologies and Their Effect on the Banking Industry
	Part II: Challenges, Opportunities, and Regulations Regarding Fintech in the Banking Industry
	Part III: Evidence from Around the World
	References
Part I Financial Technologies and Their Effects on the Banking Industry
2 Centralized and Decentralized Finance: Coexistence or Convergence?
	Introduction
	Centralized Finance (CeFi) and Technological Innovation
		CeFi—The Architecture of Our Current Financial System
		Finance—A Functional View
		Technological Innovation and CeFi—A 150-Year History
	Economical and Technical Introduction of DeFi
		DeFi—An Introduction
		The DeFi Hierarchical Layer Model
			The DeFi Layer Model
			Deep Dive: Protocol Layer
		MakerDAO—A DeFi Protocol Deep Dive
		The Technological Future of DeFi
	Comparing DeFi with CeFi
		A Functional Comparison Along the Value Chain
			Loan Origination
			Exchange Trading
		DeFi Advantages and Opportunities
		DeFi Disadvantages and Challenges
		DeFi Fault Lines
	DeFi and CeFi—Coexistence or Convergence?
		A Scenario Analysis
		Recent Examples of DeFi–CeFi Convergence
	Conclusion and Suggestions for Future Research
	References
3 Fintech and the Digital Transformation of the Banking Landscape
	Introduction
	Theoretical Framework
		Innovation and Financial Innovation
		Systemic Innovation
		Technology Diffusion Process
	Systemic Innovation and Digital Transformation of the Banking Landscape
	Diffusion of Fintech-Based Innovations and Potential Disruption/Revolution Under the Global Pandemic of COVID-19
	Research Implications and Conclusions
	References
4 Shifting Paradigms in Banking: How New Service Concepts and Formats Enhance the Value of Financial Services
	Introduction
	An Outlook on the Future
	The Next Banking
		What Customers Want
		What Open Banking May Offer to Customers: From Definition to Main Features
		A Next Generation of Business Models: Platforms and Ecosystems for Embedding Financial Services and Develop a Contextual Banking
	From Disintermediation to Cooperation
		The Infinitive Financial Intermediation
		New Concepts and Formats of Services: The Case of Account Aggregation Services
		Present and Future Developments in Value Chains
	Summary and Conclusions: Next Steps Forward
	References
5 Competitors and Partners at the Same Time: On the Role of Fintech Companies in the Latvian Financial Market
	Introduction
	Sample and Survey Design
		Sample
		Survey Design
	Results
		Basic Characteristics and Performance
		Survey Results
			General Characteristics of the Respondents
			Outlook
	Conclusions
	References
6 Non-Fungible Tokens
	Definition and Basic Concepts
	Sources of Value
		NFTs as Financial Assets
		Unique Benefits of NFTs
	Types of NFTs
		Digital Art
		Play-to-Earn Video Games
		Digital Real Estate and Other Applications
	NFT Creation and Smart Contracts
		NFT Collections
		Non-Fungible vs Semi-Fungible
		Deployment of an NFT Collection
		Metadata and Attributes
		Minting and Unveiling
		Media Storage
	Alternative Blockchains and Additional Features
		Alternative Blockchains
		Additional Features
	Marketplaces
	On the Economics of NFTs
	Conclusion
	References
Part II Challenges, Opportunities, and Regulations Regarding Fintech in the Banking Industry
7 Open Banking: Opportunities and Risks
	What Is Open Banking?
	Opportunities
	Risks and Mitigation Strategies
	Open Banking in Global View
		Europe
		Asia
		Australia
		Americas
	Conclusion
	Bibliography
8 The Rise of Financial Services Ecosystems: Towards Open Banking Platforms
	Introduction: Origin and Definition of the Open Banking Phenomenon
	New Actors in the Financial Services Market: Identifying TPPs and Their Activities
	Application Programming Interfaces (APIs) as a Technological Tool of Open Banking
	An Increasing Competition: How Is the Access to Financial Services Changing?
	A Different Approach to Complying with PSD2: Towards Open Banking Platforms
	Risks and Challenges of the Open Banking Phenomenon
	Conclusive Remarks
	References
9 The Cryptoassets Market in the United Kingdom: Regulatory and Legal Challenges
	Introduction
		The Developments in the Cryptoassets Market
	The Regulation Landscape of the Cryptoassets Market
		The Reasons for the Regulations
		What Regulations Exist Thus Far?
		What Is Regulated and What Is Unregulated?
	Regulatory and Some Legal Challenges
		Cybercrimes and Cryptosystems: What Is the Definition of Money Laundering?
		The Cryptocurrency Methods of Money Laundering
		Money Laundering Regulations in the UK
		Scope of Cryptoasset Activities
		The EU Perspective on Regulating Cryptoassets
	The Cryptocurrency Impact on the UK Banking Sector
	Conclusion
	References
10 A Preliminary Comparison of Two Ecosystems: Fintech Opportunities and Challenges for Financial Inclusion
	Introduction
	Theory: Entrepreneurial Ecosystems
	Method
	Findings
		An Ecosystem with Established Fintech Organizations
		An Ecosystem with Emergent Fintech Organizations
	Discussion of Research Results
	Conclusion
	References
11 Investigating Variables that Increase the Desire and Loyalty to Utilize Fintech After the COVID-19 Lockdown: A New Normal Behavior
	Introduction
	The Technology Acceptance Model
	Hypotheses
		The Impact of the COVID-19 Lockdown, Trust, Data Security and Privacy, QAS, and Perceived Usefulness Toward Fintech
		The Impact of Technology Literacy Skills in Multi-Groups on the Intention to Adopt Fintech
	Research Methodology
		Data Collection
		Procedure Development
	Analysis and Results
		Measurement Model
		Structural Model
		Multi-Group Test of Computer Literacy Skills
		Intention to Adopt Fintech During and Post-COVID-19 Lockdown
	Discussion
		Theoretical Implication
		Practical Implications
		Limitations and Future Research
	References
Part III Evidence From Around the World
12 Fintech and Financial Inclusion in Developing Countries
	Introduction
	Fintech and Financial Inclusion in the Developing World
		What Is Financial Inclusion, and How Can Fintech Impact It?
		Predominant Fintechs in Developing Countries
		Constraints on Fintech in Developing Countries
	Mobile Money Adoption: A Regional Comparison
		Introduction to Mobile Money
		Empirical Overview of Mobile Money Penetration
		Evolution and Impacts of Mobile Money
	Cryptocurrency and Blockchain: Next Frontier, or a Bridge Too Far?
	Risks and Regulatory Implications of the Fintech Revolution in Developing Countries
	Conclusion and Prognoses for Internationally Inclusive Fintech
	References
13 The Cash Holdings of Fintechs and SMEs: Evidence from OECD Countries
	Introduction
	Theoretical Framework and Hypotheses
	Methodology
	Results
	Conclusion
	References
14 Fintech Companies in Brazil: Assessing Their Effects on Competition in the Brazilian Financial System from 2018 to 2020
	Introduction
	Fintechs and Competition: An Overview
	Fintechs in Brazil: An Overview
	Assessing the Impacts of Fintechs on Brazilian Banks from 2018 to 2020
	Final Remarks
	References
Index