Platforms enabling consumers and corporations borrow from each other by matching lenders and borrowers. They offer low interest rates and an efficient lending process using alternative credit models and data analytics in pricing risks.
Published in Chapter:
An Overview of International Fintech Instruments Using Innovation Diffusion Theory Adoption Strategies
Ebru E. Saygili (Yasar University, Turkey) and Tuncay Ercan (Yasar University, Turkey)
Copyright: © 2021
|Pages: 21
DOI: 10.4018/978-1-7998-3257-7.ch003
Abstract
The aim of this chapter is to evaluate and predict the future of international fintech instruments in the domain of innovation diffusion theory (IDT) adoption strategies. Further, the consequences of the new payments system directive (PSD2) in Europe and blockchain applications are discussed. For instance, money transfer and payments have the highest rate of adoption (ROA) while insurance services have the highest speed of growing ROA due to relative advantages, high compatibility and trialability levels, and low level of complexity and uncertainty. Cross country comparisons include descriptive statistics about fintech deal value and volume, innovation rank, B2C commerce market, ROA and internet penetration. Germany is the only country listed in all of the top 10 ranking lists, followed by the U.S., the U.K., and France. Also, China, India, and Canada have distinguished success in terms of fintech indicators while the growth in Japan is expected to be slow. Accordingly, ROA in five emerging markets is much higher than some of the developed countries which can be explained by the Cancian Theory.