On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption and Transformation in Financial Services

Journal of Management Information Systems, 35(1), 2018, 220-265

35 Pages Posted: 19 Jun 2018

See all articles by Peter Gomber

Peter Gomber

Goethe University Frankfurt Faculty of Economics and Business Administration

Robert J. Kauffman

Singapore Management University; Singapore Management University - School of Information Systems

Chris Parker

American University - Kogod School of Business

Bruce Weber

London Business School

Date Written: December 20, 2017

Abstract

Firms in the financial services industry have been faced with the dramatic and relatively recent emergence of new technology innovations, and process disruptions. The industry as a whole, and many new fintech start-ups are looking for new pathways to successful business models, the creation of enhanced customer experience, and new approaches that result in services transformation. Industry and academic observers believe this to be more of a revolution than a set of less impactful changes, with financial services as a whole due for major improvements in efficiency, in customer centricity and informedness. The long-standing dominance of leading firms that are not able to figure out how to effectively hook up with the “Fintech Revolution” is at stake. This article presents a new fintech innovation mapping approach that enables the assessment of the extent to which there are changes and transformations in four key areas of the financial services industry. We discuss: (1) operations management in financial services, and the changes that are occurring there; (2) technology innovations that have begun to leverage the execution and stakeholder value associated with payments settlement, cryptocurrencies, blockchain technologies, and cross-border payment services; (3) multiple fintech innovations that have impacted lending and deposit services, peer-to-peer (P2P) lending and the use of social media; (4) issues with respect to investments, financial markets, trading, risk management, robo-advisory and related services that are influenced by blockchain and fintech innovations.

Keywords: Business Models, Digital Banking, Financial Services, Fintech Revolution, Lending, Markets, Operations, Payments, Process Transformation, Technology Disruption and Innovation

JEL Classification: G10, G19, G20, G21, G29, L8, O31, O33, O39

Suggested Citation

Gomber, Peter and Kauffman, Robert J. and Parker, Chris and Weber, Bruce, On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption and Transformation in Financial Services (December 20, 2017). Journal of Management Information Systems, 35(1), 2018, 220-265. Available at SSRN: https://ssrn.com/abstract=3190052

Peter Gomber

Goethe University Frankfurt Faculty of Economics and Business Administration ( email )

Grueneburgplatz 1
Frankfurt am Main, 60323
Germany

HOME PAGE: http://www.efinancelab.de/no_cache/team/?user_wiwipubs_pi2[showUid]=478

Robert J. Kauffman

Singapore Management University ( email )

Li Ka Shing Library
70 Stamford Road
Singapore 178901, 178899
Singapore
65-6828-929 (Phone)

Singapore Management University - School of Information Systems ( email )

80 Stamford Road
Singapore, 178902
Singapore

Chris Parker (Contact Author)

American University - Kogod School of Business ( email )

4400 Massachusetts Avenue NW
Washington, DC 20816-8044
United States

Bruce Weber

London Business School ( email )

Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom

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