Platform-based business models and financial inclusion (BIS)

A research paper from the BIS

From:
Competition and Markets Authority
Published
22 September 2022
Category:
Ad hoc research
Original publisher:
Bank for International Settlements
Research area:
Financial services and Technology
Research topic:
Digital transformation and Fintech
Research publish date:
22 January 2022

Abstract

Three types of digital platforms are expanding in financial services:

  • fintech entrants
  • big tech firms
  • increasingly, incumbent financial institutions with platform-based business models

These platforms can dramatically lower costs and thereby aid financial inclusion – but these same features can give rise to digital monopolies and oligopolies. Digital platforms operate in multi-sided markets, and rely crucially on big data. This leads to specific network effects, returns to scale and scope, and policy trade-offs.

Citation

BIS working paper No.986 Karen Croxson (Financial Conduct Authority), Jon Frost (BIS), Leonardo Gambacorta (BIS) and Tommaso Valletti (Imperial College London)

https://www.bis.org/publ/work986.pdf

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Published 22 September 2022
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