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Fin vs. Tech: Are trust and knowledge creation key ingredients in fintech start-up emergence and financing?

Abstract:
We investigate how the emergence of fintech start-ups and their financing is shaped by regional knowledge creation and lack of trust in financial services incumbents across 21 OECD countries, 226 regions and over the 2007–2014 period. We find that knowledge generated in the IT sector is much more salient for fostering new fintech start-ups than knowledge generated in the financial services sector. Additionally, the importance of new knowledge created in the financial services sector (IT sector) increases (decreases) as fintech start-ups grow and seek financing. When the level of trust in financial services incumbents falls within a region, this is followed by an increase in the financing provided to fintech start-ups. Nevertheless, regions with historically low average levels of trust in financial services incumbents attract less fintech investment overall.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1007/s11187-020-00367-3

Authors


More by this author
Institution:
University of Oxford
Division:
SSD
Department:
SOGE
Sub department:
Geography
Role:
Author
ORCID:
0000-0002-7503-2387
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
SOGE
Sub department:
Geography
Role:
Author
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
SOGE
Sub department:
Geography
Role:
Author
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
SOGE
Sub department:
Geography
Role:
Author


Publisher:
Springer
Journal:
Small Business Economics More from this journal
Volume:
57
Pages:
1715-1731
Publication date:
2020-06-13
Acceptance date:
2020-05-27
DOI:
EISSN:
1573-0913
ISSN:
0921-898X


Language:
English
Keywords:
Pubs id:
1106158
Local pid:
pubs:1106158
Deposit date:
2020-05-22

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