The Rise And Development Of FinTech: Accounts Of Disruption From Sweden And Beyond

467 Pages·2018·6.119 MB·English

by  Robin Teigland, Shahryar Siri, Anthony Larsson, Alejandro Moreno Puertas, Claire Ingram Bogusz

THE RISE AND
DEVELOPMENT OF FINTECH
ACCOUNTS OF DISRUPTION FROM
SWEDEN AND BEYOND
Edited by
Robin Teigland, Shahryar Siri, Anthony Larsson,
Alejandro Moreno Puertas, and
Claire Ingram Bogusz
The Rise and Development of FinTech
This comprehensive guide serves to illuminate the rise and development of
FinTech in Sweden, with the Internet as the key underlying driver. The multiple
case studies examine topics such as: the adoption of online banking in Sweden;
the identification and classification of different FinTech categories; process inno-
vation developments within the traditional banking industry; and the Venture
Capital (VC) landscape in Sweden, as shown through interviews with VC rep-
resentatives, mainly from Sweden but also from the US and Germany, as well
as offering insight into the companies that are currently operating in the FinTech
arena in Sweden. The authors address questions such as: How will the regulatory
landscape shape the future of FinTech companies? What are the factors that will
likely drive the adoption of FinTech services in the future? What is the future role
of banks in the context of FinTech and digitalization? What are the policies and
government initiatives that aim to support the FinTech ecosystem in Sweden?
Complex concepts and ideas are rendered in an easily digestible yet thought-
provoking way.
The book was initiated by the IIS (the Internet Foundation in Sweden), an
independent organization promoting the positive development of the Internet in
the country. It is also responsible for the Internet’s Swedish top-level domain .se,
including the registration of domain names, and the administration and technical
maintenance of the national domain name registry. The book illustrates how Swe-
den acts (or does not act) as a competitive player in the global FinTech arena, and
is a vital addition to students and practitioners in the field.
Robin Teigland is Professor of Business Administration with a specialization in
Strategic Information Systems Management and Co-director of the Center for
Strategy and Competitiveness at the Stockholm School of Economics (SSE),
Sweden.
Shahryar Siri is a Researcher and Project Manager at the Stockholm School
of Economics Institute for Research (SIR), Sweden, where he is responsible for
the three-year research project “The Innovative Internet” in collaboration with
the Internet Foundation in Sweden (IIS). Prior to his role at SIR, he worked as a
Consumer Insights Researcher at Ericsson and on a freelance basis.
Anthony Larsson is a Doctoral Candidate of Medical Science at Karolinska
Institutet (KI), Sweden, and a Researcher at the Stockholm School of Economics
Institute of Research (SIR), Sweden. He holds a MSc in Business & Economics,
an MBA in Business, a MSc in Political Science, a MSc in Anthropology and
an A.S. in Psychology. His research interests include management, organization
studies, entrepreneurship, innovation studies, customer loyalty, digitalization,
branding, stakeholder analysis, political science, anthropology, and qualitative
research methods.
Alejandro Moreno Puertas is a MSc finance student at the Stockholm School
of Economics (SSE), Sweden. He has previously worked in Shanghai as a rep-
resentative of Sociedad Española de Negocios en Asia y America SL for their
Chinese business development. He graduated from Tilburg University with a BSc
in economics.
Claire Ingram Bogusz is a Researcher at the Stockholm School of Economics
(SSE), Sweden. Her research interests are in how code-based technologies affect
entrepreneurship and organizational change. Her PhD thesis examined FinTech
entrepreneurship reliant on peer-to-peer technologies.
Routledge International Studies in Money and Banking
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94 The Rise and Development of FinTech
Accounts of Disruption from Sweden and Beyond
Edited by Robin Teigland, Shahryar Siri, Anthony Larsson,
Alejandro Moreno Puertas, and Claire Ingram Bogusz

The Rise and Development of
FinTech
Accounts of Disruption from
Sweden and Beyond
Edited by Robin Teigland, Shahryar Siri,
Anthony Larsson, Alejandro Moreno
Puertas, and Claire Ingram Bogusz
First published 2018
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
 2018 selection and editorial matter, Robin Teigland, Shahryar Siri,
Anthony Larsson, Alejandro Moreno Puertas, and Claire Ingram Bogusz;
individual chapters, the contributors
The right of Robin Teigland, Shahryar Siri, Anthony Larsson, Alejandro
Moreno Puertas, and Claire Ingram Bogusz to be identified as the authors
of the editorial material, and of the authors for their individual chapters,
has been asserted in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
The Open Access version of the eBook, available at www.taylorfrancis.com,
has been made available under a Creative Commons Attribution-Non
Commercial-No Derivatives 4.0 license.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Teigland, Robin, 1964- editor.
Title: The rise and development of fintech : accounts of disruption from
Sweden and beyond / [edited by] Robin Teigland [and four others].
Description: Abingdon, Oxon ; New York, NY : Routledge, 2017. |
Includes bibliographical references and index.
Identifiers: LCCN 2017045736 (print) | LCCN 2017051503 (ebook) |
ISBN 9781351183628 (eBook) | ISBN 9780815378501 (hardback :
alk. paper)
Subjects: LCSH: Finance—Technological innovations—Sweden. | Internet
banking—Sweden.
Classification: LCC HG186.S85 (ebook) | LCC HG186.S85 R57 2017
(print) | DDC 332.10285/4678—dc23
LC record available at https://lccn.loc.gov/2017045736
ISBN: 978-0-8153-7850-1 (hbk)
ISBN: 978-1-351-18362-8 (ebk)
Typeset in Times New Roman
by Swales & Willis Ltd, Exeter, Devon, UK
Contents
List of figures x
List of tables xii
List of contributors xiii
Acknowledgments xviii
Foreword xix
Introduction: FinTech and shifting financial system institutions 1
ROBIN TEIGLAND, SHAHRYAR SIRI, ANTHONY LARSSON,
ALEJANDRO MORENO PUERTAS, AND CLAIRE INGRAM BOGUSZ
PART 1
New regulations 19
1 A regulatory innovation framework: how regulatory change
leads to innovation outcomes for FinTechs 21
ÅKE FREIJ
2 Information security in the realm of FinTech 43
GEORGIOS KRYPAROS
3 FinTech in Sweden: will policymakers’ (in)action nurture
or starve its growth? 66
BJÖRN OLSSON AND MATTIAS HALLBERG
4 The future of cash 85
NIKLAS ARVIDSSON
5 The adoption of online banking in Sweden 99
MICHAEL BJÖRN
viii Contents
PART 2
Cognition: legitimacy and views 109
6 The role of trust in emerging technologies 111
MATS LEWAN
7 Responding to the FinTech challenge: a study of Swedish
bank managers’ perceptions of FinTech’s effects on
digitalization and customer e-loyalty 130
ANTHONY LARSSON
8 The three phases of FinTech 154
ANNA FELLÄNDER, SHAHRYAR SIRI, AND ROBIN TEIGLAND
9 Clarifying the blurry lines of FinTech: opening the Pandora’s
box of FinTech categorization 168
MICHAL GROMEK
10 The Internet as an enabler of FinTech 190
MATS LEWAN
PART 3
New norms enabled by new technologies and standards 205
11 Digital traces, ethics, and insight: data-driven services
in FinTech 207
CLAIRE INGRAM BOGUSZ
12 Digital meetings: real growth, better funding? An introduction
to Swedish crowdfunding 223
MICHAL GROMEK AND ALEXANDRE DUBOIS
13 The payment landscape in Sweden 238
NIKLAS ARVIDSSON
14 Introduction to the robo-advisory industry in Sweden 253
AGNĖ MAČIJAUSKAITĖ
15 Blockchain: the Internet of Value 276
ALEJANDRO MORENO PUERTAS AND ROBIN TEIGLAND
Contents ix
16 How to scale Bitcoin: a payment network that no one controls 309
HÅKAN HOLMBERG
PART 4
A view of the actors 325
17 Banks and digitalization 327
JOCHEM VAN DER ZANDE
18 The role of venture capital in the success of the Swedish
FinTech industry 350
ELIZABETH PRESS
19 How distance comes into play in equity crowdfunding 376
ALEXANDRE DUBOIS AND MICHAL GROMEK
20 The Stockholm FinTech Hub 390
CATHARINA BURENSTAM LINDER
21 Geographic decentralization of FinTech companies in Sweden 399
KATARZYNA JERECZEK
22 When Britain leaves the EU, will FinTechs turn to the Vikings? 411
MICHAL GROMEK AND TIMOTHEOS MAVROPOULOS
Conclusion: implications for actors as institutions evolve 422
ROBIN TEIGLAND, SHAHRYAR SIRI, ANTHONY LARSSON,
ALEJANDRO MORENO PUERTAS, AND CLAIRE INGRAM BOGUSZ
Index 432