In the wake of the high level of political, regulatory and economic uncertainty alongwith recent challenges and developments in climate change, clean technology and greenfinance, new contributions in Financial Technology (FinTech) will significantly changethe landscape of sources of finance for businesses.
Digital technologies have begun to disrupt, banking and insurance markets and will continue to shape the financial sectorover the coming years. The FinTech revolution was sparked by the introduction ofcrowdfunding and alternative sources of finance. Over the past decade, onlinemarketplaces have become an important source of credit for businesses. Following several years of rapid growth, marketplace lenders today originate 25% of all businessloans in the United States (US) and are an important source of finance for newentrepreneurs.
A key advantage of marketplaces over traditional financial intermediaries for entrepreneurs is they provide faster and cheaper access to credit,which enables start-up and business growth. However, despite accounting for approximately 30% of outstanding unsecured credit, little attention has been paid towhether online marketplaces systematically affect entrepreneurship and the overallimpact on financial institutions and world economies.
This issue is important forassessing the implications of the FinTech lending expansion and the ramifications ofmarketplaces displacing traditional financial intermediaries. This research theme embodies the effects of different types of crowdfunding (equity-based and rewardbased),and issues related to how the nascent FinTech sector influences the bankingindustry, financial institutions and regulatory bodies. Understanding how the rapidlyexpanding FinTech industry affects these sectors, and consumer welfare, are toppriorities for the design of regulation. The objective of this special issue conference isto promote both theoretical and empirical research on the challenges and opportunities,developments and dynamics of FinTach and its impact on financial institutions.