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What is Traditional Finance

Handbook of Research on Global Aspects of Sustainable Finance in Times of Crises
They are the sources of financing obtained from the banking system and/or capital markets (such as bank loans, bond issuance, stock issuance).
Published in Chapter:
Paradigm Change in Financing Sources: Transition From Traditional Finance to Platform-Based Finance to Ensure Financial Sustainability
Çiğdem Kurt-Cihangir (Hitit University, Turkey) and Burcu Zengin (Ankara Hacı Bayram Veli University, Turkey)
DOI: 10.4018/978-1-7998-8501-6.ch017
Abstract
Paradigm changes also change the sources of corporate finance. The goal of this chapter is to demonstrate how the sociological changes that will be created by technological developments transform the sources of finance within the framework of “sustainability” and “financial inclusion.” At this point, the basic elements of the financial system in the transition from traditional financing to alternative financing and to platform-based financing, albeit a new one, are examined. For this purpose, first of all, traditional financing sources and alternative financing sources are briefly mentioned, and then platform-ecosystem-based financing sources, which are the main subject of the study, are shed light on. The sources of financing provided through FinTechs are examined within the framework of digital finance-digital inclusion and online finance models (especially crowdfunding). The changes that the COVID-19 process may create in financial resources and the digital technologies it may bring are also assessed.
Full Text Chapter Download: US $37.50 Add to Cart
More Results
Manufactured Risks of Reward-Based Crowdfunding Platforms
This chapter calls typical and renowned methods of finance that usually involves financial institutions as “traditional,” also interchangeably used with “conventional” finance.
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