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The platform political economy of FinTech: Reintermediation, consolidation and capitalisation

Langley, P.; Leyshon, A.

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Authors

A. Leyshon



Abstract

‘FinTech’ is the digital sector of retail money and finance widely proclaimed to be transforming banking in the global North and ‘banking the unbanked’ in the global South. This paper develops a perspective for critically understanding FinTech as a platform political economy that is marked by three distinctive and related processes: reintermediation, consolidation, and capitalisation. Through experimentation with the platform business model and building on the digital infrastructures and data flows of the broader platform ecosystem, a constellation of organisations – including start-ups, early-career firms, BigTech companies and incumbent banks – are engaged in processes of platform reintermediation. Changing the bases of competition in retail money and financial markets and encouraging oligopoly and even monopoly, the reintermediation processes of FinTech are presently manifest in strong tendencies towards platform consolidation. The imagined potential of FinTech has also triggered intensive processes of capitalisation, with platforms receiving significant prospective investment by venture capital, private equity funds, banks and BigTech firms.

Journal Article Type Article
Acceptance Date Apr 22, 2020
Online Publication Date May 20, 2020
Publication Date 2021
Deposit Date Apr 22, 2020
Publicly Available Date Nov 20, 2021
Journal New Political Economy
Print ISSN 1356-3467
Electronic ISSN 1469-9923
Publisher Taylor and Francis Group
Peer Reviewed Peer Reviewed
Volume 26
Issue 3
Pages 376-388
DOI https://doi.org/10.1080/13563467.2020.1766432
Public URL https://durham-repository.worktribe.com/output/1272906

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