FinTech Innovations as a Disruptive Technology in the National Economy
AbstractFinTech innovations are generally perceived as a positive phenomenon in the development of the national economy, as they create new opportunities for economic development, widen the involvement of households and the business sector in financial relations, increase the range of services used by economic entities. However, from the perspective of traditional financial intermediaries, including banking institutions, FinTech innovations can be seen as disruptive technologies. Technology could be defined as “disruptive technology” if its use is fundamental to a particular disruptive innovation. The developer of the theory of disruptive innovation is Clayton Christensen. According to this theory, disruptive innovation is an innovation, employing a ‘technology’ in management, marketing activities and investment policy which transforms information, labour, capital, and materials into products or services of greater value, which becomes the main goal of a company, and, as a consequence, fundamentally changes the established ‘rules of the game’ in many industries. Thus, certain innovations can undermine existing products, firms, or even entire industries . In the banking sector, FinTech technologies lead to the disruption of traditional business models and established consumer relations models, to the disappearance of certain types of financial services as a result of their digital switchover or the complete replacement of services offered by FinTech companies. The types of banking services that have been most impacted by FinTech innovations (i.e. their providers are now predominantly FinTech companies) are payments and transfers, as they are highly profitable and easily digitized. The Capgemini report identifies the following levels of FinTech’s disruptive impact on financial services : - high level: payments, personal finance management;
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