TY  - JOUR
A1  - Brandl, Barbara
A1  - Hornuf, Lars
T1  - Where did FinTechs come from, and where do they go? The transformation of the financial industry in Germany after digitalization
T2  - Frontiers in artificial intelligence
N2  - The digitalization of financial services opened a window for new players in the financial industry. These start-ups take on tasks and functions previously reserved for banks, such as financing, asset management, and payments. In this article, we trace the transformation of the industry after digitalization. By using data on FinTech formations in Germany, we provide first evidence that entrepreneurial dynamics in the FinTech sector are not so much driven by technology as by the educational and business background of the founders. Furthermore, we investigate the reactions of traditional banks to the emergence of these start-ups. In contrast with other emerging industries such as biotechnology, a network analysis shows that FinTechs have mostly engaged in strategic partnerships and only a few banks have acquired or obtained a financial interest in a FinTech. We explain the restraint of traditional banks to fully endorse the new possibilities of digitalized financial services with the characteristics of the technology itself and with the postponed fundamental decisions of banks to modernize their IT infrastructure.
KW  - application programming interface
KW  - API
KW  - crowdfunding
KW  - financial technology
KW  - FinTech
KW  - financial industry
KW  - IT infrastructure
KW  - robo-advice
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/54448
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-544487
N1  - Copyright © 2020 Brandl and Hornuf. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
VL  - 3
IS  - Article 8
PB  - Frontiers Media
CY  - Lausanne
ER  -