Trends 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

See all articles by Omer Unsal

Omer Unsal

Merrimack College - Girard School of Business - Department of Accounting and Finance

Blake Rayfield

Indiana State University - Scott College of Business; Networks Financial Institute

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

Suggested Citation

Unsal, Omer and Rayfield, Blake, Trends in Financial Innovation: Evidence from Fintech Firms (July 30, 2019). International Finance Review (Forthcoming); Networks Financial Institute Working Paper Series 2019-WP-03. Available at SSRN: https://ssrn.com/abstract=3429199

Omer Unsal (Contact Author)

Merrimack College - Girard School of Business - Department of Accounting and Finance ( email )

315 Turnpike St
North Andover, MA 01845
United States

Blake Rayfield

Indiana State University - Scott College of Business ( email )

800 Sycamore Street
Terre Haute, IN 47809
United States

Networks Financial Institute ( email )

Indianapolis, 46208
United States

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