Domashenko, S., Hres-Yevreinova, S., Zadoia, Y., et al., Sustainable Engineering and Innovation, 5 (2), 2023.

The relevance of the article lies in examining the functional relationship between blockchain and fintech technologies in the innovative digital space of financial and industrial companies. The research aims to investigate the directions for the development of large integrated systems of financial and industrial capital, based on the principles of intensive production. The results of the research have shown that the optimal criteria for the index of digital cyber protection are financially linked to industrial capital. The article substantiates the macroprudential policy of Ukraine’s banking sector based on blockchain regulators and fintech technologies from the EU, which foster the intensive development of technological competitiveness among financial institutions. The article can be useful for financial and industrial executives, banking institutions, consulting firms, and educators seeking insights into the integration of blockchain and fintech technologies.

Giakoumelou, A., Salvi, A., Bekiros, S., et al., Research in International Business and Finance, 69 (April), 2024.

FinTech, delineating financial technological innovation, altered the modus operandi of traditional banks and intermediaries and gave rise to alternative providers of financial services. At the same time, the increasing regulatory and market attention to environmental, social and governance (ESG) risks, changed the rules for traditional finance. This work analyses European FinTech firms during funding rounds from 2014 to 2022 to investigate the relationship between sustainability profiles and valuations.

Ermolaev, K.N., Dragileva, K.L. and Nedorezova, E.S., Lecture Notes in Networks and Systems, 304 ( November), 2022.

Specially created IT companies are usually involved in development of financial technologies that are successfully applied in the financial sector. Their combination represents the financial technology sector (FinTech). It has been substantiated that FinTech is a direction of the IT industry, which is engaged in development, security of digital transaction technologies and creation of mobile applications that facilitate transactions. It is obvious that the FinTech sector began to develop in Europe much earlier than in Russia. At the moment, the FinTech sector has significantly expanded beyond the boundaries of mobile payments and transfers. The most widely used financial technologies include P2P lending, T-commerce, E-wallets, mPOS acquiring, M-wallets, Bitcoin and others. Moreover, many clients of financial institutions are unwittingly already using most of the above technologies, and in some cases, without realizing the technical component of this financial product.

Ruhland, P. and Wiese, F., Journal of Business Strategy, 44 (4), 2023.

The challenge of innovation and digitalization leads financial institutions and FinTechs to cooperate with each other. Therefore, it becomes more and more important to understand the why of the partnering, as success depends on it. The purpose of this paper is to derive most important common and specific strategic cooperation rationales between financial institutions and FinTechs, which serves as a value adding guideline for both parties. Starting from the FinTech perspective, the most relevant partnership motives were found to be financial return, reputation and credibility. The access primarily drives these motives to additional customer acquisition channels and a reputational quality signaling of the FinTech products or services within the market. On the other hand, the most critical incumbent motives were shown to be customer satisfaction and business model innovation. From a corporate perspective, these motives mainly incorporate the opportunity to challenge, pivot and expand the existing business model while increasing customer satisfaction via additional innovative products or services.

McCarthy, J., Law, Innovation and Technology, 15 (1), 2023.

The background to this article is the seeming revival of a sandbox approach to FinTech regulation within the EU, as epitomised by legislative initiatives on AI and DLT. The article contributes to existing literature on the topic by highlighting how the current design of sandboxes is not being informed by sufficiently comprehensive empirical evidence from international examples. As well as examining relevant provisions of the European Commission’s proposals on AI sandboxes and introduction of a DLT pilot regime, the article refers to UK and Australian examples to demonstrate the varying features of sandboxes. Even if there is continued ambiguity as to the characteristics of sandboxes, broader regulatory supports, such as innovation hubs, can be vital. However, this should not diminish the need for improved clarity and transparency on sandboxes’ operations. The ability to make necessary refinements will determine how the EU’s regulatory approach to FinTech generally will evolve.

Salo-Lahti, M., European Business Law Review, 33 (5), 2022.

FinTech has changed the way financial services are produced and delivered.1 As the Digital Finance Strategy for the EU put it: the future of finance is digital. Digital finance has also helped people and businesses tackle the unprecedented challenges caused by the COVID-19 pandemic. We increasingly rely on digital and remote technologies. The role of regulation is to make sure that these technologies are used in a responsible way.2 Robo-advising is one of the innovations relating to FinTech. This article addresses central challenges and risks in robo-advising, and the regulatory means to tackle them. When these challenges are resolved, robo-advising can provide customers with an easy-to-use, cost-effective and flexible service.

Ferilli, G.B., Palmieri, E., Miani, S., et al., Research in International Business and Finance, 69 (April), 2024.

Within the evolving financial industry, characterised by the proliferation of FinTech and exacerbated by the Covid-19 , this paper investigates the unexplored relationship between financial, social, infrastructural factors and the level of digital financial divide (DFD) in Europe. Applying a difference-in-difference model, the study reveals that innovation in financial services correlates with a reduced DFD, further reinforced by improved digital infrastructure and social progress.

Ajouz, M., Abuamria, F., Al Zeer, I., et al., Cuadernos de Economia, 46 (132), 2023.

Although there is a significant gap in comprehensive research on FinTech ecosystems in emerging markets, it is evident that these regions hold immense potential for growth in the field of financial technology. This study explores the FinTech landscape of these markets, focusing on the opportunities and challenges that exist. We emphasize the necessity of adopting localized, trust-oriented strategies, strengthening capacity, and exploring under-represented segments such as small markets and Islamic Finance. We further identify the need for confidence-building measures, customer-focused approaches, active consumer participation, equitable FinTech reporting, and an orientation toward the Future. We strongly encourage policymakers to update regulations that prioritise consumers, create task forces dedicated to FinTech, promote collaboration among regions, and ensure that business models comply with existing laws. We suggest simplifying regulations and developing a flexible, industry-specific regulatory action plan. In addition, we emphasise the significance of strategic investment in emerging market FinTech companies through secure regional registration, investor education, qualification programmes, third-party evaluation, and promoting mergers and acquisitions. These factors are essential for nurturing a strong FinTech ecosystem in these markets.

Turki, A. and Rieg, R., Review of Accounting and Finance, 22 (5), 2023.

Many observers believe that industry experience of entrepreneurs drives successful new entrepreneurial firms. However, whenever it comes to disruptive digital ventures such as Financial Technologies (Fintechs), the picture may be different due to the cross-industry nature of digital firms. The purpose of this study is to disentangle the impacts of finance, banking and information technology (IT) experiences of founders on performance of European Fintechs around venture capital (VC) investment. The findings indicate that finance and IT-specific experiences seem to matter more often than banking experience and that the extent of their impact depends on level and metric of performance. More specifically, Fintechs in Europe and UK are more able to achieve market success with both finance and IT experiences of their founders, but that does not necessarily transform into higher returns for investors.

McCarthy, J., Journal of Financial Regulation and Compliance, 31 (2), 2022.

The paper’s aim is to consider how best to formulate sturdy regulatory frameworks for RegTech and SupTech. The paper appraises how key features of EU and UK regulatory and policy initiatives can contribute to a functional framework for RegTech and SupTech. The paper reveals distinct variations in how the EU and UK have pursued regulatory approaches towards RegTech and SupTech growth. However, there are many shared features in the respective approaches. The paper argues that a regulatory framework should ideally be imbued with overarching strategies and policy objectives, as well as with practical measures through innovation facilitators, such as sandboxes. Yet, legislative (top-down) intervention will be the significant ingredient in guaranteeing legal clarity for RegTech and SupTech.

Schilling de Carvalho, P., Journal of Financial Regulation, 8 (1), 2022.

A common rhetoric has emerged among UK authorities when it comes to how to deal with a potential loss of influence in the regulation of financial services after Brexit: as divergence from the EU increases, it will be necessary to retain the UK’s influence as a rule maker through an enhanced engagement via international standard-setting bodies (ISSBs). This article argues that placing an excessive focus on the role of ISSBs to mitigate the UK’s loss of influence might be misguided, based on an analysis of the UK’s past relationship with these regulatory networks, alongside an assessment of their historical shortcomings and increasing limitations.

Collevecchio, F., Cappa, F., Peruffo, E., et al., British Journal of Management, 35 (1), 2024.

In the last decade, fintech has emerged in the financial sector, introducing numerous innovations that have severely impacted traditional banks. To respond to fintech firms and meet the new needs of consumers, banks seek to align their offerings by integrating fintech knowledge through mergers and acquisitions (M&As) within an open innovation framework. However, it is still not clear when exactly M&As with fintech firms benefit banks. This paper examines the contingency factors that make M&As beneficial for acquirer banks by using a holistic approach that considers the type of firm, type of deal and the context in which M&As occur.