Fintechs & blockchain Flashcards
Innovation and digitalization have impacted what in banking?
Efficiency and profitability
When did fintechs started and when was their boom?
2013 and 2018
What is tech fin?
Tech enabler and cibersecurity
What are the benefits of fintechs?
- Highly standardizes
- Low cost
- Relatively low risk of financial products
- Technology-oriented consumer behavior
What are the two groups of fintechs?
- Providing complementary services to banking
- Providing traditionally covered services
What do complementary services by fintechs bring?
-Partnerships and competitive advantage
What do traditional covered services by fintechs bring?
Competition, possible cooperation
New opportunities
Why (dis)economies of scope by fintechs?
Because they apply diversification with a different technology oriented towards different markets (this brings geographical diversification)
What do fintechs do wrt demand/supply?
They link demand to supply instead of focusing solely on supply
Who benefits more than proportionally from investments?
Customers, they create demand from strong network effects
What are the benefits of blockchains?
- Immutable and transparent
- Lack of centralized control
- Lower transaction costs
- Greater innovation/value potential
What are the pros/cons of the lack of centralized control by blockchains?
Gives access to a large network in a fast and cheap way. BUT poor coordination
What is the difference between coins and tokens?
Coins = operate independently through their own blockchain technology Tokens = depend on other currencies' blockchains
