FinTech: Disruption in Financial Services
Permanent URI for this collectionhttps://hdl.handle.net/10125/107515
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Item type: Item , Estimating Crypto-Related Risk: Market-Based Evidence from FTX’s Failure and Its Contagion on U.S. Banks(2024-01-03) Mueller, Lukas; Stoeckl, Sebastian; Mueller, Johanna; Schiereck, DirkWe use historical covariance between stock returns of U.S. banks and bitcoin returns to estimate a sensitivity measure that captures crypto-related risk in financial institutions. The measure effectively explains cross-sectional stock returns of 219 U.S. based financial institutions in response to the failure of FTX on November 11, 2022. Overall we document negative contagion effects on the market valuation of U.S. banks. We further show that this risk measure is unrelated to variables that have been used to explain operational risk in previous literature, i.e., corporate governance and business complexity. However, we document a significant relation with bank liquidity as measured by the Tier 1 capital adequacy ratio. We conclude that, on average, it is the banks with sufficient liquidity reserves that venture into the crypto sphere. Our approach offers individual investors and customers the opportunity to leverage market efficiency to evaluate the idiosyncratic level of crypto-related risk in a financial institution.Item type: Item , Towards Secure Cloud-Computing in FinTechs – An Artefact for Prioritizing Information Security Measures(2024-01-03) Leuthe, Daniel; Weiß, Florian; Dersch, Julian; Bitzer, MichaelThe number of FinTechs has been proliferating over the last decades. While their innovative offerings inherit disruptive potential, the security of their cloud services remains a fundamental issue. Tight budgets and the need for rapid product development force FinTechs to focus on the most necessary information security measures (ISMs) that ensure regulatory compliance and avoid customer losses due to security incidents. The question arises of how FinTechs should prioritize ISMs. To answer this question, we follow design science research to develop an artifact by which cloud service using and providing FinTechs can obtain a prioritized list of ISMs. Our resulting artifact builds upon extant research on FinTechs and information security (IS), relevant regulatory frameworks, and the shared responsibility model for cloud services. Our research contributes to the conceptualization of integrated ISM prioritization for FinTechs and provides practitioners with a structured prioritization approach based on a standardized logic.Item type: Item , In Decentralized Finance Nobody Knows You Are a Dog(2024-01-03) Gramlich, Vincent; Guggenberger, Tobias; Principato, Marc; Schellinger, Benjamin; Duda, Sebastian; Stoetzer, JensIdentities are an essential aspect of information systems (IS) as they allow users of a digital ecosystem to interact, build trust, and form relationships. Decentralized finance (DeFi) is a digital, blockchain-based ecosystem that has seen tremendous growth in the last years, however, struggles with current identity implementations. While academics and practitioners have identified numerous implications, a scientific systematization of the role of identities in DeFi and their potentials and challenges is missing. By conducting a multivocal literature review, we rigorously gather the current knowledge and aggregate the different perspectives and concepts to present (I) a comprehensive conceptualization of identities in DeFi, (II) their potentials and challenges, and (III) concepts to manage the tension in between. Thereby, we aim to lay a foundation for future research on identities that increase DeFi's security, efficiency, and adoption while minimizing or eliminating the drawbacks for data privacy and censorship.Item type: Item , Introduction to the Minitrack on FinTech: Disruption in Financial Services(2024-01-03) Behara, Ravi; Goo, Jahyun; Huang, C.; Yoo, Chul