From Theory to Practice: Discussion and Managerial Implications

Egidio Palmieri and Enrico Fioravante Geretto ()
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Enrico Fioravante Geretto: University of Udine

Chapter Chapter 5 in Adapting to Change, 2023, pp 169-186 from Palgrave Macmillan

Abstract: Abstract This chapter, ‘From Theory to Practice: Discussion and Managerial Implications’, explores the impact of financial technology in banking also looking at ESG (Environmental, Social, and Governance) factors. The chapter evaluates the effect of FinTech on bank-firm relationships, especially in credit risk assessment, revealing a tendency for banks to favour firms with efficient FinTech interactions and robust environmental practices. The text explores the intricate connection between firms’ characteristics and financial terms, drawing attention to FinTech’s long-term impact on interest rates and capital structure. It unravels challenges encountered by banks with FinTech, including the ability to maintain close associations and conduct thorough due diligence. The work highlights the importance of reliable ESG metrics and unbiased FinTech algorithms. Finally, this chapter proposes a research programme that concentrates on interdisciplinary studies and creating predictive models to support financial institutions with strategic ESG compliance. It also emphasizes the need for a balance between quantitative and qualitative approaches to comprehend fully the impact of FinTech on banking.

Keywords: FinTech Impact; Credit Risk Assessment; ESG Metrics; Capital Structure; Predictive Models (search for similar items in EconPapers)
JEL-codes: C53 G21 G32 M14 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-50265-1_5

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DOI: 10.1007/978-3-031-50265-1_5

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