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2021 | OriginalPaper | Buchkapitel

3. A Taxonomy of FinTech Innovation

verfasst von : James Bowden, Timothy King, Dimitrios Koutmos, Tiago Loncan, Francesco Saverio Stentella Lopes

Erschienen in: Disruptive Technology in Banking and Finance

Verlag: Springer International Publishing

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Abstract

This chapter provides a detailed overview of the importance of innovation in the financial sector and highlights key areas of FinTech growth. It is divided into two main parts. In Part 1: Introduction to Innovation we begin by outlining an important role for innovation in driving economic change, based on the seminal work of (Schumpeter, J. A. (1939). Business cycles (Vol. 1, pp. 161–174). New York: McGraw-Hill.) and his concept of ‘circular flow’, which attempts to explain how innovation can be a driver of economic change. Having established a theoretical importance for innovation as a harbinger of economic change and development, it then proceeds to discuss the role of innovation in the financial industry including the main drivers of innovation and channels through which innovation can improve economic welfare. In Part 2: A Taxonomy of FinTech Innovation based on Patents. the second half of the chapter focuses on identifying and discussing the major areas of FinTech based innovation. We begin by identifying key area of FinTech development based on worldwide patents filed with the United States Patent and Trademark Office (USPTO). From the patents data we identify four broad areas of FinTech development and then proceed to discuss FinTech development within these four areas.

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Fußnoten
1
Google Ngram Viewer is an online search engine which, at the time of writing, plots the annual frequencies with which strings of characters are found in Google’s text corpora between 1500 and 2019: https://​books.​google.​com/​ngrams/​graph?​content=​FinTech.
 
2
It should be noted that the 1986 figure here is based on data from the British Bankers’ Association (BBA), whereas the 2019 data is from the Office of National Statistics (ONS).
 
3
The number of LINK ATM machines (an interbank network of ATM machines that accounts for virtually all cash machines in the United Kingdom) increased from 24,574 in 1998 to 70,588 in 2015 (LINK, 2021).
 
4
In Europe, for example the number of ATM machines decreased declined by almost fourteen thousand between 2016 and 2018 (De Best, 2021). https://​www.​statista.​com/​statistics/​445076/​transactions-at-atms-in-link-network-in-the-united-kingdom/​.
 
5
The Open Banking initiative in the UK also resulted from the outcome of an investigation into the retail banking market by the Competition and Markets Authority (CMA) (UK Government, 2021).
 
6
As a result of this, consumers may be better able to switch to banking accounts and services that improve their financial wellbeing. For example, in a CMA survey conducted by GfK NOP (2015), 8% of respondents claimed to have switched providers within the last three years, compared to 45% for car insurance and 31% for energy.
 
7
Although not as quickly as.
 
8
Comparatively, the number of firms engaged in the Open banking ecosystem across Europe is lagging. As of October 2020, there were 36 such firms in Germany, 18 in France, 9 in Spain and 6 in Italy (Chatenay, 2021).
 
9
The Federal Reserve define electronic payments as being bank account number payments, online banking bill pay and payment services such as PayPal.
 
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Metadaten
Titel
A Taxonomy of FinTech Innovation
verfasst von
James Bowden
Timothy King
Dimitrios Koutmos
Tiago Loncan
Francesco Saverio Stentella Lopes
Copyright-Jahr
2021
Verlag
Springer International Publishing
DOI
https://doi.org/10.1007/978-3-030-81835-7_3