Cross-domain theoretical synthesis and systemic tensions
| FinTech domain | Primary theoretical lens | Core analytical mechanism | Inherent systemic tension/Paradox |
|---|---|---|---|
| Digital payments | Platform economics | Multi-sided network effects drive lightning-fast, zero-marginal-cost scaling | Monopolisation paradox: Democratises user access but naturally aggregates massive market power into a few dominant BigTech gatekeepers |
| Alternative lending | Disruptive innovation theory | Algorithmic scoring utilising non-traditional digital footprints bypasses physical bank infrastructure (Berg et al., 2020) | Inclusion vs. exploitation: Expands credit lines to historically unbanked populations but risks embedding systemic bias into automated credit scoring |
| WealthTech and InsurTech | Financial intermediation theory | Fractionalisation of assets and automated smart contracts unbundle traditional risk pooling and distribution | Asymmetric trust: Lowers advisory fees and structural overhead but shifts complex portfolio and asset risks entirely onto retail consumers |
| Blockchain and DeFi | Institutional theory | Decentralised validator networks bypass centralised socio-legal compliance mechanisms | Regulatory arbitrage: Maximises peer-to-peer security and execution speed while operating deliberately outside traditional sovereign legal protections |
| FinTech domain | Primary theoretical lens | Core analytical mechanism | Inherent systemic tension/Paradox |
|---|---|---|---|
| Digital payments | Platform economics | Multi-sided network effects drive lightning-fast, zero-marginal-cost scaling | Monopolisation paradox: Democratises user access but naturally aggregates massive market power into a few dominant BigTech gatekeepers |
| Alternative lending | Disruptive innovation theory | Algorithmic scoring utilising non-traditional digital footprints bypasses physical bank infrastructure ( | Inclusion vs. exploitation: Expands credit lines to historically unbanked populations but risks embedding systemic bias into automated credit scoring |
| WealthTech and InsurTech | Financial intermediation theory | Fractionalisation of assets and automated smart contracts unbundle traditional risk pooling and distribution | Asymmetric trust: Lowers advisory fees and structural overhead but shifts complex portfolio and asset risks entirely onto retail consumers |
| Blockchain and DeFi | Institutional theory | Decentralised validator networks bypass centralised socio-legal compliance mechanisms | Regulatory arbitrage: Maximises peer-to-peer security and execution speed while operating deliberately outside traditional sovereign legal protections |
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