Financial Innovation Solutions from Blockchain Technology in the Perception of Financial Market Agents
DOI:
https://doi.org/10.31686/ijier.vol7.iss12.2121Keywords:
Bitcoin, Financial Technologies, Disintermediation, Financial Environment, Business ModelsAbstract
The phenomenon of financial innovation (FI) found, in the fast-contemporary technological advance, the possibility of disseminating solutions that are intended to fill market gaps, promoting profound changes in the traditional financial structure. This finding can be explained by the perceptible movement of different agents interested in exploring the applications of blockchain technology in recent years. Considering this scenario of changes and expectations the present work aims to analyze perceptions of financial market agents about the possibility of blockchain technology influence in the creation of FI solutions. From the point of view of the research strategy, it constitutes a field research. We operated through interviews with the participation of twelve managers of institutions that operate in the financial environment. The results point to blockchain impacting the financial environment of organizations, whether in its technology platforms, investments, internal structures, people, governance, business conceptions. Likewise, by the existence of opportunities to solve market problems, affecting, through deeper changes in the financial system, from the disintermediation. It reveals the emergence of new business models and the possibility of consumers and managers less dependent on a centralized financial environment.
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References
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Collomb, A., & Sok, K. (2016). Blockchain / Distributed Ledger Technology (DLT): what impact on the financial sector? Digiworld Economic Journal, 103, 93-111.
Davenport, T. H. (1993). Process innovation: reengineering work through information technology. Boston: Harvard Business School Press.
Denzin, N., & Lincoln, Y. S. (2008). O planejamento da pesquisa qualitativa: teorias e abordagens. Porto Alegre: Artmed.
Dhillon, V., Metcalf, D., & Hooper, M. (2018). Blockchain enabled applications: understand the blockchain ecosystem and how to make it work for you. Orlando: Apress.
Fanning, K., & Centers, D. P. (2016). Blockchain and its coming impact on financial services. Journal of Corporate Accounting & Finance, 27(5), 53–57.
Fasnacht, D. (2009). Open innovation in the financial services: growing through openness, flexibility and customer integration. Berlin: Springer.
Foerstl, K., Schleper, M. C., & Henke, M. (2017). Purchasing and Supply Management: from efficiency to effectiveness in an integrated supply chain. Journal of Purchasing and Supply Management. 23(4), 223-228.
Gaynor, G. H. (2002). Innovation by design: what it takes to keep your company on the cutting edge. New York: AMACOM.
Hernández Sampieri, R., Fernández Collado, C., & Baptista Lucio, P. (2013). Metodologia de pesquisa (5th ed.). Porto Alegre: Penso.
Holmstrom, B. (1989). Agency costs and innovation. Journal of Economic Behavior and Organization, 12(3), 305–327.
Iansiti, M., & Lakhani, K. R. (2017, January/February). The truth about blockchain. Harvard Business Review, 119-127.
Instituto Brasileiro de Geografia e Estatística (2019). Coomissão nacional de classificação. Retrieved January 04, 2019 from https://concla.ibge.gov.br/busca-online-cnae.html?view=estrutura
Jacque, L. L. (2001). Financial innovations and the dynamics of emerging capital markets. In L. L. Jacque, & P. M. Vaaler (Orgs.). Financial Innovations and the Welfare of Nations (pp. 1-21). Boston: Springer.
Kane, E. J. (1984). Technological and regulatory forces in the developing fusion of financial-services competition. The Journal of Finance, 39(3), 759-772.
Kothari, C. R. (2004). Research methodology: methods & techniques (2nd ed.). New Delhi: New Age International.
Lee, L. (2016). New kids on the blockchain: how bitcoin’s technology could reinvent the stock market. Hastings Business Law Journal, 12(2), 81-132.
Lerner, J. (2006). The new new financial thing: the origins of financial innovations. Journal of Financial Economics, 79(2), 223–255.
Levich, R. M. (1989). Recent international financial innovations: implications for financial management. Journal of International Financial Management and Accounting, 1(1), 1–14.
Llewellyn, D. T. (2009). Financial innovation and the economics of banking and the financial system. In L. Anderloni, D. T. Llewellyn, & R. H. Schmidt (Orgs.). Financial Innovation in Retail and Corporate Banking (pp. 01-40). Cheltenham: Edward Elgar.
Lucarelli, C., Mazzoli, C., & Rothfeld, M. (2009). Innovation in trading activity: should stock markets be more transparent? In L. Anderloni, D. T. Llewellyn, & R. H. Schmidt (Orgs.). Financial Innovation in Retail and Corporate Banking (pp. 282-317). Cheltenham: Edward Elgar.
Malone, T. W., Yates, J., & Benjamin, R. I. (1987). Electronic markets and electronic hierarchies. Communications of the ACM, 30(6), 484–497.
Mansfield, E., Rapoport, J., Schnee, J., Wagner, S., & Hamburger, M. (1971). Research and innovation in the modern corporation. London: The Macmillan Press.
Merton, R. C. (1992). Financial innovation and economic performance. Journal of Applied Corporate Finance, 4(4), 12–22.
Moyano, J. P., & Ross, O. (2017). KYC optimization using distributed ledger technology. Bus Inf Syst Eng, 59(6), 411–423.
Natarajan, H., Krause, S. K., Gradstein, H. L. (2017). Distributed Ledger Technology (DLT) and blockchain. Fintech note, 1. Washington, D.C. : World Bank Group. Retrieved November 18, 2018 from http://documents.worldbank.org/curated/en/177911513714062215/Distributed-Ledger-Technology-DLT-and-blockchain
Nicoletti, B. (2017). The future of fintech. Cham: Springer Nature.
NIEHANS, J. (1983). Financial innovation, multinational banking, and monetary policy. Journal of Banking and Finance, 7(4), 537–551.
Nowiński, W., & Kozma, M. (2017). How can blockchain technology disrupt the existing business models? Enterpreneurial Business and Economics Review – EBER, 5(3), 173-188.
Organisation for Economic Co-Operation and Development. (2005). Oslo Manual: guidelines for collecting and interpreting innovation data (3rd ed.) Paris: Organisation for Economic Co-operation and Development.
Pinna, A. & Ruttenberg, W. (2016, April). Distributed ledger technologies in securities post-trading: revolution or evolution? European Central Bank Occasional paper series, 172. Retrieved November 12, 2018 from https://www.ecb.europa.eu/pub/pdf/scpops/ecbop172.en.pdf
Rooney, D., Mandeville, T., & Kastelle, T. (2013). Abstract knowledge and reified financial innovation: building wisdom and ethics into financial innovation networks. Journal of Business Ethics, 118(3), 447–459.
Schumpeter, J. A. (1939). Business cycles: a theoretical, historical and statistical analysis of the capitalist process. New York: McGraw-Hill.
Schumpeter, J. A. (1934). The theory of economic development. Cambridge: Harvard University.
Scott, B., Looman, J., & Kumar, V. (2017). Exploring the rise of blockchain technology: towards distributed collaborative organizations. Strategic Change. 26(5), 423-428.
Silber, W. L. (1983). The process of financial innovation. The American Economic Review, 73(2), 89-05.
Swan, M. (2015). Blockchain: Blueprint for a new economy. Sebastopol: O’Reilly Media.
Tapscott, D., & Tapscott, A. (2016). Blockchain Revolution: how the technology behind Bitcoin is changing money, business, and the world. New York: Penguin.
Tapscott, D., & Tapscott, A. (2017, Winter). How blockchain will change organizations. MIT Sloan Management Review, 10-13.
Tidd, J., & Bessant, J. R. (2011). Managing innovation: integrating technological, market and organizational change (4th ed.). Chichester: Wiley.
Tufano, P. (2003). Financial innovation. In G. M. Constantinides, M. Harris, & R. M. STULZ, Rene M. (Orgs.). Handbook of The Economics Of Finance (pp. 307-335). Amsterdam: Elsevier.
Twiss, B. C. (1974). Managing technological innovation. London: Longman.
Umarovich, A. A., Gennadyevna, V. N., Vladimirovna, A. O., Alexandrovich, S. R. (2017). Block chain and financial controlling in the system of technological provision of large corporations. European Research Studies Journal, 3B(XX), 3-12.
Utterback, J. M. (1977). Recent findings and hypotheses about the dynamics of product and process change. In K. A. Stroetmann (Ed.). Innovation, economic change and technology policies: proceedings of the Seminar on Technological Innovation, Bonn, Federal Republic of Germany, April 5 to 9, 1976 (pp. 07-20). Basel: Springer Basel AG
Utterback, J. M. (1971). The Process of Innovation within the Firm. Academy of Management Journal, 14, 75-88.
White, G. R. T. (2017). Future applications of blockchain in business and management: a delphi study. Strategic Change, 26(5), 439–451.
White, L. J. (2000). Technological change, financial innovation, and financial regulation in the U.S.: the challenge for public policy. In P. T. Harker, & S. A. Zenios (Orgs.). Performance of Financial Institutions: efficiency, innovation, regulation (pp. 388-415). Cambridge: Cambridge University Press.
Yap, A., & Synn, W. (2009). Evolution of online financial trading systems: e-service innovations in the brokerage sector. In A. Scupola (Org.). Cases on managing e-services (pp. 166-187). Hershey: Information Science Reference.
Yermack, D. (2017). Corporate governance and blockchains. Review of Finance, 21(1), 7-31.
Yoo, S. (2017). Blockchain based financial case analysis and its implications. Asia Pacific Journal of Innovation and Entrepreneurship, 11(3), 312-321. Retrieved November 14, 2018 from https://www.emeraldinsight.com/doi/full/10.1108/APJIE-12-2017-036
Bakos, Y. (1998). The emerging role of electronic marketplaces on the internet. Communications of the ACM, 41(8), 35–42.
Bambara, J. J., & Allen, P. R. (2018). Blockchain: a practical guide to developing business, law, and technology solutions. New York: McGraw-Hill Education
Bank of England. (2014, September 16). Innovations in payment Technologies and the emergence of digital currencies. Quarterly Bulletin, 54(3), 262-275. Retrieved November 26, 2018 from https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/innovations-in-payment-technologies-and-the-emergence-of-digital-currencies.pdf
Berger, W. (1990). Financial innovations in international debt management. Wiesbaden: Gabler Verlag.
Bernholz, P. & Vaubel, R. (2014). The Political Economy of Monetary and Financial Innovation: introduction and overview. In P. Bernholz, & R. Vaubel (Orgs.). Explaining monetary and financial innovation: a historical analysis (pp. 01-16). London: Springer.
Blake, D. (1996). Financial intermediation and financial innovation in a characteristics framework. Scottish Journal of Political Economy, 43(1), 16–31.
Banco Central do Brasil. (2017, August 31). Distributed ledger technical research in Central Bank of Brazil. Positioning report. Retrieved August 12, 2018, from http://www.bcb.gov.br/htms/public/microcredito/Distributed_ledger_technical_research_in_Central_Bank_of_Brazil.pdf
Cao, S., Cao, Y., Wang, X., & Lu, Y. (2017). A review of researches on blockchain. Proceedings of the Wuhan International Conference on E-Business, Wuhan, China. Retrieved on November 15, 2018 from http://aisel.aisnet.org/whiceb2017/57
Collomb, A., & Sok, K. (2016). Blockchain / Distributed Ledger Technology (DLT): what impact on the financial sector? Digiworld Economic Journal, 103, 93-111.
Davenport, T. H. (1993). Process innovation: reengineering work through information technology. Boston: Harvard Business School Press.
Denzin, N., & Lincoln, Y. S. (2008). O planejamento da pesquisa qualitativa: teorias e abordagens. Porto Alegre: Artmed.
Dhillon, V., Metcalf, D., & Hooper, M. (2018). Blockchain enabled applications: understand the blockchain ecosystem and how to make it work for you. Orlando: Apress.
Fanning, K., & Centers, D. P. (2016). Blockchain and its coming impact on financial services. Journal of Corporate Accounting & Finance, 27(5), 53–57.
Fasnacht, D. (2009). Open innovation in the financial services: growing through openness, flexibility and customer integration. Berlin: Springer.
Foerstl, K., Schleper, M. C., & Henke, M. (2017). Purchasing and Supply Management: from efficiency to effectiveness in an integrated supply chain. Journal of Purchasing and Supply Management. 23(4), 223-228.
Gaynor, G. H. (2002). Innovation by design: what it takes to keep your company on the cutting edge. New York: AMACOM.
Hernández Sampieri, R., Fernández Collado, C., & Baptista Lucio, P. (2013). Metodologia de pesquisa (5th ed.). Porto Alegre: Penso.
Holmstrom, B. (1989). Agency costs and innovation. Journal of Economic Behavior and Organization, 12(3), 305–327.
Iansiti, M., & Lakhani, K. R. (2017, January/February). The truth about blockchain. Harvard Business Review, 119-127.
Instituto Brasileiro de Geografia e Estatística (2019). Coomissão nacional de classificação. Retrieved January 04, 2019 from https://concla.ibge.gov.br/busca-online-cnae.html?view=estrutura
Jacque, L. L. (2001). Financial innovations and the dynamics of emerging capital markets. In L. L. Jacque, & P. M. Vaaler (Orgs.). Financial Innovations and the Welfare of Nations (pp. 1-21). Boston: Springer.
Kane, E. J. (1984). Technological and regulatory forces in the developing fusion of financial-services competition. The Journal of Finance, 39(3), 759-772.
Kothari, C. R. (2004). Research methodology: methods & techniques (2nd ed.). New Delhi: New Age International.
Lee, L. (2016). New kids on the blockchain: how bitcoin’s technology could reinvent the stock market. Hastings Business Law Journal, 12(2), 81-132.
Lerner, J. (2006). The new new financial thing: the origins of financial innovations. Journal of Financial Economics, 79(2), 223–255.
Levich, R. M. (1989). Recent international financial innovations: implications for financial management. Journal of International Financial Management and Accounting, 1(1), 1–14.
Llewellyn, D. T. (2009). Financial innovation and the economics of banking and the financial system. In L. Anderloni, D. T. Llewellyn, & R. H. Schmidt (Orgs.). Financial Innovation in Retail and Corporate Banking (pp. 01-40). Cheltenham: Edward Elgar.
Lucarelli, C., Mazzoli, C., & Rothfeld, M. (2009). Innovation in trading activity: should stock markets be more transparent? In L. Anderloni, D. T. Llewellyn, & R. H. Schmidt (Orgs.). Financial Innovation in Retail and Corporate Banking (pp. 282-317). Cheltenham: Edward Elgar.
Malone, T. W., Yates, J., & Benjamin, R. I. (1987). Electronic markets and electronic hierarchies. Communications of the ACM, 30(6), 484–497.
Mansfield, E., Rapoport, J., Schnee, J., Wagner, S., & Hamburger, M. (1971). Research and innovation in the modern corporation. London: The Macmillan Press.
Merton, R. C. (1992). Financial innovation and economic performance. Journal of Applied Corporate Finance, 4(4), 12–22.
Moyano, J. P., & Ross, O. (2017). KYC optimization using distributed ledger technology. Bus Inf Syst Eng, 59(6), 411–423.
Natarajan, H., Krause, S. K., Gradstein, H. L. (2017). Distributed Ledger Technology (DLT) and blockchain. Fintech note, 1. Washington, D.C. : World Bank Group. Retrieved November 18, 2018 from http://documents.worldbank.org/curated/en/177911513714062215/Distributed-Ledger-Technology-DLT-and-blockchain
Nicoletti, B. (2017). The future of fintech. Cham: Springer Nature.
NIEHANS, J. (1983). Financial innovation, multinational banking, and monetary policy. Journal of Banking and Finance, 7(4), 537–551.
Nowiński, W., & Kozma, M. (2017). How can blockchain technology disrupt the existing business models? Enterpreneurial Business and Economics Review – EBER, 5(3), 173-188.
Organisation for Economic Co-Operation and Development. (2005). Oslo Manual: guidelines for collecting and interpreting innovation data (3rd ed.) Paris: Organisation for Economic Co-operation and Development.
Pinna, A. & Ruttenberg, W. (2016, April). Distributed ledger technologies in securities post-trading: revolution or evolution? European Central Bank Occasional paper series, 172. Retrieved November 12, 2018 from https://www.ecb.europa.eu/pub/pdf/scpops/ecbop172.en.pdf
Rooney, D., Mandeville, T., & Kastelle, T. (2013). Abstract knowledge and reified financial innovation: building wisdom and ethics into financial innovation networks. Journal of Business Ethics, 118(3), 447–459.
Schumpeter, J. A. (1939). Business cycles: a theoretical, historical and statistical analysis of the capitalist process. New York: McGraw-Hill.
Schumpeter, J. A. (1934). The theory of economic development. Cambridge: Harvard University.
Scott, B., Looman, J., & Kumar, V. (2017). Exploring the rise of blockchain technology: towards distributed collaborative organizations. Strategic Change. 26(5), 423-428.
Silber, W. L. (1983). The process of financial innovation. The American Economic Review, 73(2), 89-05.
Swan, M. (2015). Blockchain: Blueprint for a new economy. Sebastopol: O’Reilly Media.
Tapscott, D., & Tapscott, A. (2016). Blockchain Revolution: how the technology behind Bitcoin is changing money, business, and the world. New York: Penguin.
Tapscott, D., & Tapscott, A. (2017, Winter). How blockchain will change organizations. MIT Sloan Management Review, 10-13.
Tidd, J., & Bessant, J. R. (2011). Managing innovation: integrating technological, market and organizational change (4th ed.). Chichester: Wiley.
Tufano, P. (2003). Financial innovation. In G. M. Constantinides, M. Harris, & R. M. STULZ, Rene M. (Orgs.). Handbook of The Economics Of Finance (pp. 307-335). Amsterdam: Elsevier.
Twiss, B. C. (1974). Managing technological innovation. London: Longman.
Umarovich, A. A., Gennadyevna, V. N., Vladimirovna, A. O., Alexandrovich, S. R. (2017). Block chain and financial controlling in the system of technological provision of large corporations. European Research Studies Journal, 3B(XX), 3-12.
Utterback, J. M. (1977). Recent findings and hypotheses about the dynamics of product and process change. In K. A. Stroetmann (Ed.). Innovation, economic change and technology policies: proceedings of the Seminar on Technological Innovation, Bonn, Federal Republic of Germany, April 5 to 9, 1976 (pp. 07-20). Basel: Springer Basel AG
Utterback, J. M. (1971). The Process of Innovation within the Firm. Academy of Management Journal, 14, 75-88.
White, G. R. T. (2017). Future applications of blockchain in business and management: a delphi study. Strategic Change, 26(5), 439–451.
White, L. J. (2000). Technological change, financial innovation, and financial regulation in the U.S.: the challenge for public policy. In P. T. Harker, & S. A. Zenios (Orgs.). Performance of Financial Institutions: efficiency, innovation, regulation (pp. 388-415). Cambridge: Cambridge University Press.
Yap, A., & Synn, W. (2009). Evolution of online financial trading systems: e-service innovations in the brokerage sector. In A. Scupola (Org.). Cases on managing e-services (pp. 166-187). Hershey: Information Science Reference.
Yermack, D. (2017). Corporate governance and blockchains. Review of Finance, 21(1), 7-31.
Yoo, S. (2017). Blockchain based financial case analysis and its implications. Asia Pacific Journal of Innovation and Entrepreneurship, 11(3), 312-321. Retrieved November 14, 2018 from https://www.emeraldinsight.com/doi/full/10.1108/APJIE-12-2017-036
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Santos, G., & Camilo, S. P. O. (2019). Financial Innovation Solutions from Blockchain Technology in the Perception of Financial Market Agents. International Journal for Innovation Education and Research, 7(12), 677-695. https://doi.org/10.31686/ijier.vol7.iss12.2121
