Paper Info
Title
Crossing the next frontier: the role of ICT in driving the financialization of credit.
Abstract
Financialization describes a phenomenon whereby financial markets assume an increasingly dominant role within the economy. This paper seeks to dissect the role of information and communications technology (ICT) in financialization by following a cross-disciplinary approach across finance, economics and information systems. Accordingly, we develop a general framework describing the relationship between ICT and financialization. This framework allows us to investigate the recent rise of online marketplaces for credit. Consequently, ICT is not only facilitating, but fundamentally driving a disintermediation of banks through advances in computing, communication and information technology. We also provide supporting evidence from interviews with almost 40 senior experts and C-level executives. Interestingly, only rather recent innovations have enabled the popularity of marketplace lending, such as cloud computing, big data, scalable IT infrastructures and comprehensive ecosystems of programming interfaces. In contrast, we observe a slow integration of advanced analytics in the field of risk management. Based on our analysis, the paper also discusses cross-country implications for marketplace lending, financialization and regulation.
Year
DOI
Venue
2017
10.1057/s41265-017-0035-9
JIT
Keywords
Field
DocType
financialization, information technology, marketplace lending, peer-to-peer lending, credit, intermediation
Financialization,Information system,Economics,Information technology,Disintermediation,Knowledge management,Information and Communications Technology,Intermediation,Industrial organization,Analytics,Big data,Marketing
Journal
Volume
Issue
ISSN
32
3
0268-3962
Citations 
PageRank 
References 
1
0.36
14
Authors
3
Name
Order
Citations
PageRank
Daniel Drummer110.36
Stefan Feuerriegel221931.91
Dirk Neumann329437.29