Download This PaperTrends in Financial Innovation: Evidence from Fintech Firms
International Finance Review (Forthcoming)
Networks Financial Institute Working Paper Series 2019-WP-03
18 Pages Posted: 2 Aug 2019
Date Written: July 30, 2019
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.
Keywords: Financial Technology, Financial Innovation, Patents, Data Breach
JEL Classification: O33, O16
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