Chapter 5 FinTechs, BigTechs and structural changes in capital markets
This chapter aims at exploring some theoretical issues associated with the impact of technology companies on the market structure in the financial industry with the special focus on capital markets. Based on the industrial organization theory, as well as on an extensive literature review, research t...
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| Format: | Online |
| Idioma: | anglès |
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Taylor & Francis
2022
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| Accés en línia: | https://library.oapen.org/handle/20.500.12657/52929 |
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| _version_ | 1869514146893004800 |
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| author | Harasim, Janina |
| author_browse | Harasim, Janina |
| author_facet | Harasim, Janina |
| author_sort | Harasim, Janina |
| collection | Directory of Open Access Books |
| description | This chapter aims at exploring some theoretical issues associated with the impact of technology companies on the market structure in the financial industry with the special focus on capital markets. Based on the industrial organization theory, as well as on an extensive literature review, research to date, and industry reports, the attempt was made to identify main structural changes resulting from FinTech's activity in this market segment. It was found that, in contrast to the banking sector, BigTechs are not interested in entering into capital markets. This can be explained by complexity of investment services and weak synergies between them and non-financial services offered by technology giants. As a result, digitalization in capital markets is driven rather from inside and supported by FinTechs. In the stock market, the development of high-frequency trading resulted in the increasing centralization of trade that neither facilitated market access nor eliminated the market asymmetry. Nonetheless, FinTech solutions allowed reductions in transaction costs and increase in short-term market efficiency. In the asset management and mutual funds industry digital platforms, developed mostly by incumbents, by lowering transaction costs and reducing communication frictions made investing easier and cheaper for individuals, however their decisions became more speculative. |
| format | Online |
| id | doab-20.500.12854ir-78411 |
| institution | Directory of Open Access Books |
| language | eng |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | Taylor & Francis |
| publisherStr | Taylor & Francis |
| record_format | ojs |
| spelling | doab-20.500.12854ir-784112025-07-30T11:56:43Z Chapter 5 FinTechs, BigTechs and structural changes in capital markets Harasim, Janina thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJD Business innovation thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJE E-commerce: business aspects thema EDItEUR::K Economics, Finance, Business and Management::KC Economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJD Business innovation thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJE E-commerce: business aspects thema EDItEUR::K Economics, Finance, Business and Management::KC Economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics This chapter aims at exploring some theoretical issues associated with the impact of technology companies on the market structure in the financial industry with the special focus on capital markets. Based on the industrial organization theory, as well as on an extensive literature review, research to date, and industry reports, the attempt was made to identify main structural changes resulting from FinTech's activity in this market segment. It was found that, in contrast to the banking sector, BigTechs are not interested in entering into capital markets. This can be explained by complexity of investment services and weak synergies between them and non-financial services offered by technology giants. As a result, digitalization in capital markets is driven rather from inside and supported by FinTechs. In the stock market, the development of high-frequency trading resulted in the increasing centralization of trade that neither facilitated market access nor eliminated the market asymmetry. Nonetheless, FinTech solutions allowed reductions in transaction costs and increase in short-term market efficiency. In the asset management and mutual funds industry digital platforms, developed mostly by incumbents, by lowering transaction costs and reducing communication frictions made investing easier and cheaper for individuals, however their decisions became more speculative. 2022-02-19T04:02:02Z 2022-02-19T04:02:02Z 2022-02-18T11:38:00Z 2022 chapter https://library.oapen.org/handle/20.500.12657/52929 9780367558406 9780367558345 https://directory.doabooks.org/handle/20.500.12854/78411 eng open access image/jpeg image/jpeg image/jpeg image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International https://library.oapen.org/bitstream/20.500.12657/52929/1/9780367558345_10.4324_9781003095354_5.pdf https://library.oapen.org/bitstream/20.500.12657/52929/1/9780367558345_10.4324_9781003095354_5.pdf https://library.oapen.org/bitstream/20.500.12657/52929/1/9780367558345_10.4324_9781003095354_5.pdf https://library.oapen.org/bitstream/20.500.12657/52929/1/9780367558345_10.4324_9781003095354_5.pdf Taylor & Francis Routledge 10.4324/9781003095354-5 10.4324/9781003095354-5 fa69b019-f4ee-4979-8d42-c6b6c476b5f0 The Digitalization of Financial Markets 9780367558406 9780367558345 Routledge 21 open access |
| spellingShingle | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJD Business innovation thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJE E-commerce: business aspects thema EDItEUR::K Economics, Finance, Business and Management::KC Economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJD Business innovation thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJE E-commerce: business aspects thema EDItEUR::K Economics, Finance, Business and Management::KC Economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics Harasim, Janina Chapter 5 FinTechs, BigTechs and structural changes in capital markets |
| title | Chapter 5 FinTechs, BigTechs and structural changes in capital markets |
| title_full | Chapter 5 FinTechs, BigTechs and structural changes in capital markets |
| title_fullStr | Chapter 5 FinTechs, BigTechs and structural changes in capital markets |
| title_full_unstemmed | Chapter 5 FinTechs, BigTechs and structural changes in capital markets |
| title_short | Chapter 5 FinTechs, BigTechs and structural changes in capital markets |
| title_sort | chapter 5 fintechs bigtechs and structural changes in capital markets |
| topic | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJD Business innovation thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJE E-commerce: business aspects thema EDItEUR::K Economics, Finance, Business and Management::KC Economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJD Business innovation thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJE E-commerce: business aspects thema EDItEUR::K Economics, Finance, Business and Management::KC Economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics |
| topic_facet | thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJD Business innovation thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJE E-commerce: business aspects thema EDItEUR::K Economics, Finance, Business and Management::KC Economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry::KFFK Banking thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJD Business innovation thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJE E-commerce: business aspects thema EDItEUR::K Economics, Finance, Business and Management::KC Economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics |
| url | https://library.oapen.org/handle/20.500.12657/52929 |
| work_keys_str_mv | AT harasimjanina chapter5fintechsbigtechsandstructuralchangesincapitalmarkets |