P2P lending and Natural Disasters: Is Altruistic Behavior conditional?

2023 | International Conference on Information Systems | Citations: 0

Authors: Agrawal, Lavlin; Sharman, Raj; Tiu, Christian; Joenväärä, Juha

Abstract: In the aftermath of natural disasters, borrowers seeking credit from traditiona ... Expand

Abstract: In the aftermath of natural disasters, borrowers seeking credit from traditional sources, such as banks, may encounter higher interest rates than in pre-disaster periods. We examine the lending behavior of peer-topeer (P2P) platforms in the wake of disasters. Since P2P platforms involve individual investors in making lending decisions, they accommodate both profit motives and empathetic responses. Empirical evidence from psychology suggests that empathy can lead to prosocial behavior. Consistent with this assertion, we find that loans affected by natural disasters have lower interest rates than comparable loans not issued in the wake of disasters. Our study finds that lenders are involved in a prosocial behavior and are ready to give away some part of their interest income to help the communities in need. Collapse

Topics: crowdsourcing natural hazard peer-to-peer lending peer-to-peer model LendingClub

Methods: instrumental variables estimation experimental group sensitivity analysis ordinary least square robustness check

“Collaborating” with AI: Taking a System View to Explore the Future of Work

2023 | Organization Science | Citations: 0

Authors: Anthony, Callen; Bechky, Beth A.; Fayard, Anne-Laure

Abstract: In the wake of media hype about artificial intelligence (AI)/human collaboration ... Expand

Abstract: In the wake of media hype about artificial intelligence (AI)/human collaboration, organizations are investing considerable resources into developing and using AI. In this paper, we draw on theories of technology in organizations to frame new directions for the study of what it means to work “with” AI. Drawing on prior literature, we consider how interactions between users and AI might unfold through theoretical lenses which cast technology as a tool and as a medium. Reflecting on how AI technologies diverge from technologies studied in the past, we propose a new perspective, which considers technology as a counterpart in a system of work that includes its design, implementation, and use. This perspective encourages developing a grounded understanding of how AI intersects with work, and therefore ethnography, building on thick descriptions, is an apt approach. We argue that relational ethnographic approaches can assist organization theorists in navigating the methodological challenges of taking a counterpart perspective and propose several strategies for future research. Collapse

Topics: artificial intelligence spreadsheet human AI collaboration human computer interaction information system use

Methods: ethnography computational algorithm qualitative interview experiment theory development

Theories: theory of distributed cognition actor network theory

Institutional pressures and RegTech challenges for banking: The case of money laundering and terrorist financing in Lebanon

2023 | Journal of Information Technology | Citations: 0

Authors: Bakhos Douaihy, Houanyda; Rowe, Frantz

Abstract: As banks face heightened levels of regulatory challenges, many of them, especial ... Expand

Abstract: As banks face heightened levels of regulatory challenges, many of them, especially those in developing countries, are struggling to maintain their reputations. This paper addresses the following questions: How do commercial banks in developing countries like Lebanon respond to institutional pressures for compliance concerning anti-money laundering (AML) and counter-financing of terrorism (CFT)? How do Regulatory Technology (RegTech) solutions contribute to solving their compliance problems in this domain and why may the potential of RegTech be limited in the Lebanese context? To answer these questions, we conducted a field study among Lebanese commercial banks and their vendors. Based on thematic analysis, findings reveal the importance of technology for enhancing compliance of Lebanese banks with international regulations, especially US ones, thereby avoiding sanctions. Thus, the adoption of RegTech is mainly due to coercive pressures, whereas the choice of RegTech solutions is highly dependent on mimetic and normative forces, and happens later. Results also show that manual processes are insufficient for compliance due to the huge number of regulations and transactions. Hence, RegTech for AML/CFT is notably adopted for the efficient screening of clients and monitoring of their transactions. These solutions enhance decision-making processes for compliance teams, which become effective when the banks ensure an adequate interaction between employees and the new technologies. However, RegTech presents several additional challenges that have to be overcome for effective compliance such as finding the right vendors and ensuring data quality. Moreover, the geopolitical context in developing countries like Lebanon limits the potential of RegTech for AML/CFT. Collapse

Topics: decision making terrorist incident criminality IS discipline electronic finance

Methods: qualitative interview field study qualitative content analysis literature study theoretical contribution

Theories: institutional theory technology acceptance theory

Facilitating interorganizational trust in strategic alliances by leveraging blockchain-based systems: Case studies of two eastern banks

2023 | International Journal of Information Management | Citations: 0

Authors: Chen, Renee Rui; Chen, Kun; Ou, Carol X.J.

Abstract: Strategic alliances require mutual trust and collaboration between organizations ... Expand

Abstract: Strategic alliances require mutual trust and collaboration between organizations. To increase alliance perfor­ mance, organizations in a strategic alliance are more likely to interpret each other’s equivocal behaviors in a positive way to sustain the stability of the relationship. Different from traditional mechanisms to build inter­ organizational trust, blockchain facilitates trust among alliance partners via its technology advantages, for example, public ledger and distributed consensus. The decentralized and distributed nature of a blockchainbased system assures that no single organization can add information to the chain without an approval from the alliance, nor can it make unilateral changes in the system. Drawing from the Affordance Theory, we propose an exploratory research design to understand the structure of a blockchain-based system, as well as how this blockchain-based system influences interorganizational trust in a strategic alliance and how blockchain-enabled interorganizational trust influences alliance performance. The case studies of two eastern banks indicate that the technical features of blockchain can help reduce equivocal behaviors and improve interorganizational trust. We discuss the findings and conclude the paper with implications. Collapse

Topics: blockchain affordance user experience usability smart contract

Methods: qualitative interview case study design artifact conceptual modelling computational algorithm

Theories: theory of affordance

Conversation Analytics: Can Machines Read between the Lines in Real-Time Strategic Conversations?

2023 | HICSS | Citations: 0

Authors: Chen, Y.; Rui, H.; Whinston, A.

Abstract: Strategic conversations involve one party with an informational advantage and t ... Expand

Abstract: Strategic conversations involve one party with an informational advantage and the other with an interest in the information. This paper proposes machinelearning based measures to quantify the degrees of evasiveness and incoherence of the informed party during real-time strategic conversations. The specific empirical context is the questions and answers (Q&A) part of earnings conference calls during which managers endure high pressure as they face analysts' scrutinizing questions. Being reluctant to disclose adverse information, managers may resort to evasive answers and sometimes respond less coherently due to increased cognitive load. Using data from the earnings calls of the S&P 500 companies from 2006 to 2018, we show that the proposed measures predict worse nextquarter earnings. Moreover, the stock market perceives incoherence as a negative signal. This paper contributes methodologically by developing two novel machinepowered measures to automatically evaluate behavioral cues during real-time strategic conversations. The proposed analytical tools are particularly beneficial to resource-constrained and informationally disadvantaged parties such as retail investors who may not be able to effectively trade on signals buried deep in unstructured conversational data. Collapse

Topics: database system artificial intelligence electronic finance missing data accounting

Methods: computational algorithm BERT deep learning machine learning next sentence prediction

Theories: theory of economic growth

Value Co-creation in Fintech Ecosystem: A Case Study of Australia

2023 | International Conference on Information Systems | Citations: 0

Authors: Dhavamani, Prakash; Muthukannan, Priyadharshini; Tan, Barney; Gozman, Daniel

Abstract: The development of the Fintech Ecosystem brings radical socio-economic value by ... Expand

Abstract: The development of the Fintech Ecosystem brings radical socio-economic value by increasing entrepreneurship, innovation, and financial inclusion. Yet, there is a lack of knowledge regarding how value is co-created among the actors in the Fintech Ecosystem. The research objective is to conduct an in-depth case study in the Australian Fintech Ecosystem to explore the processes and mechanisms of value co-creation. Our study develops a framework for understanding value co-creation facilitated through digital affordance infrastructure. The study has several potential theoretical contributions to the literature on Fintech Ecosystem development by providing insights into antecedent conditions, mechanisms, paradoxical tensions, and outcome attributes derived from the framework. For practitioners, our framework could assist regulators and organizations within the ecosystem in gaining a deeper understanding of the processes necessary for continued success. Regulators could adjust the intensity of controls in response to environmental uncertainties and tensions. Collapse

Topics: electronic finance participatory design information technology infrastructure affordance usability

Methods: design methodology case study qualitative coding qualitative interview field study

Theories: theory of affordance

Promise not fulfilled: FinTech, data privacy, and the GDPR

2023 | Electronic Markets | Citations: 0

Authors: Dorfleitner, Gregor; Hornuf, Lars; Kreppmeier, Julia

Abstract: This article analyzes how the General Data Protection Regulation (GDPR) has affe ... Expand

Abstract: This article analyzes how the General Data Protection Regulation (GDPR) has affected the privacy practices of FinTech firms. We study the content of 276 privacy statements respectively before and after the GDPR became binding. Using text analysis methods, we find that the readability of the privacy statements has decreased. The texts of privacy statements have become longer and use more standardized language, resulting in worse user comprehension. This calls into question whether the GDPR has achieved its original goal—the protection of natural persons regarding the transparent processing of personal data. We also link the content of the privacy statements to FinTech-specific determinants. Before the GDPR became binding, more external investors and a higher legal capital were related to a higher quantity of data processed and more transparency, but not thereafter. Finally, we document mimicking behavior among FinTech industry peers with regard to the data processed and transparency. Collapse

Topics: legal context General Data Protection Regulation privacy electronic finance website

Methods: parametric test paired t-test descriptive statistic Student's t-test qualitative content analysis

Theories: privacy calculus theory

Catching the Fast Payments Trend: Optimal Designs and Leadership Strategies of Retail Payment and Settlement Systems

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Guo, Zhiling; Ma, Dan

Abstract: Recent financial technologies have enabled fast payments and are reshaping reta ... Expand

Abstract: Recent financial technologies have enabled fast payments and are reshaping retail payment and settlement systems globally. We developed an analytical model to study the optimal design of a new retail payment system in terms of settlement speed and system capability under both bank and fintech firm heterogeneous participation incentives. We found that three types of payment systems emerge as equilibrium outcomes: batch retail (BR), expedited retail (ER), and real-time retail (RR) payment systems. Although the base value of the payment service positively affects both settlement speed and system capability, the expected liquidity cost negatively impacts settlement speed, and total transaction volume and technological effectiveness positively impact system capability. We identified three leadership strategies to maximize social welfare: the government mandate (GM) strategy, the fintech-inclusive (FI) strategy, and the fintech-exclusive and bank-exclusive (FE+BE) strategy. When the base value of the payment service is either low or high, the GM strategy leads to a socially optimal unified system. When the base value of the payment service is in the intermediate range, and if fintech firms have a significant technological advantage over banks, then both GM and FI strategies result in a socially optimal unified system; otherwise, the FE+BE strategy results in a socially optimal fragmented system. Further, we proposed a Shapley-value-based cost-sharing rule under the GM strategy to fairly allocate social welfare among the system participants. Our findings offer important policy insights into the optimal system designs, leadership strategies, and the government regulator's role in shaping future innovations in the payments industry. Collapse

Topics: electronic finance systems design electronic payment economic surplus IS economics

Methods: optimization model mathematical model sensitivity analysis literature study machine learning

Success and Failure Retrospectives of FinTech Projects: A Case Study Approach

2023 | Information Systems Frontiers | Citations: 0

Authors: Jinasena, Dakshitha N.; Spanaki, Konstantina; Papadopoulos, Thanos; Balta, Maria E.

Abstract: The popularity and potential of FinTech for generating business value has been h ... Expand

Abstract: The popularity and potential of FinTech for generating business value has been highlighted in an evolving number of studies. Nevertheless, there is still ambiguity on the success of such disruptive technologies. To address this gap, this paper draws on a case study of an IT vendor in Japan. We interview key stakeholders involved in the case project to (i) explore the success factors of FinTech applications adopted by non-financial organisations, (ii) illustrate the applicability of the multi-dimensional project success framework in FinTech projects, and (iii) highlight the importance of the FinTech Project Management field that warrants further investigation. We contribute to the IT Project Management field, where we extend the theoretical background with aspects of FinTech adoption and success. We also inform practice in terms of lessons for managers to improve the existing processes and assist their organisations in business transformational initiatives using FinTech. Collapse

Topics: electronic finance project management IT project management IT project organizational value

Methods: qualitative interview case study qualitative content analysis qualitative coding literature study

Fintech: A content analysis of the finance and information systems literature

2023 | Electronic Markets | Citations: 0

Authors: Jourdan, Zack; Corley, J. Ken.; Valentine, Randall; Tran, Arthur M.

Abstract: The amount of research related to financial technologies (fintech) has grown rap ... Expand

Abstract: The amount of research related to financial technologies (fintech) has grown rapidly since these modalities have been implemented. A review of this literature base will help identify the topics that have been explored and identify topics for further research. This research project collects, synthesizes, and analyzes both the research strategies (i.e., methodologies) and content (e.g., topics, focus, categories) of the literature, and then discusses an agenda for future research efforts. We searched for fintech research published in the last 20 years and analyzed 146 articles published in Finance and 70 articles published in Information Systems (IS) during this period in their respective A*, A, and B journals in the 2019 Australian Business Deans Council list. We found an increasing level of activity during the most recent 6-year period and a biased distribution of fintech articles focused on exploratory methodologies. We also found several research strategies that were either underrepresented or absent from the pool of fintech research and identified several subject areas that need further exploration. We also created four fintech topic categories to organize and classify this diverse research stream. Collapse

Topics: electronic finance database system productivity

Methods: literature sample field study literature study survey qualitative content analysis