Automation of the Financial Market: A Drag or a Driver for Bank Disintermediation?
Journal Title: Journal of Economics, Finance and Management Studies - Year 2021, Vol 4, Issue 08
Abstract
This paper discusses and analyzes how Information Technologies destabilize the banking sector and induce irrevocable changes in the sector that lead to new entrants, innovation and, above all, disintermediation. Our objective is to analyze the relationship between the financial market, IT and financial intermediation, in order to detect the impact of the automation of the financial market on the traditional intermediation activity of banks. Based on a descriptive analysis of the Tunisian banking sector, and over the 1998-2018 periods, we have shown that the disintermediation of Tunisian banks is the consequence of the automation of the financial market. The more the financial market invests in IT, the more banks are Disinter mediated. In Tunisia, IT is a driving force behind the disintermediation of banks. In any case, recent developments confirm the fact that rather than asserting that traditional banking is dead, the above analysis advocates a renewal of the banking economy. The role of banks is not about to diminish. The era of direct finance and new technologies has not so much created disintermediation but rather a new sharing of roles in the financial sphere.
Authors and Affiliations
Syrine Ben Romdhane
Keywords
Related Articles
- EP ID EP705544
- DOI 10.47191/jefms/v4-i8-29
- Views 81
- Downloads 0
Ethical Decision Dilemma for Tax Consultants in Tax Planning
Tax consultants contribute to assisting taxpayers in overcoming difficulties caused by the complexity of tax rules. Reliable tax consultants tend to provide aggressive advice. Tax consultants as professionals must uphold...
Understanding Tax Compliance: The Interplay between Tax Morale, Tax Rates, and Mediating Intentions
Small, and Medium Enterprises(SMEs) play a crucial role in the national economy. The stability of the economy can be maintained through the tax compliance, which contributes significantly to economic stability. This stud...
A Time-Series Analysis Of Insurance Sector Density And Environmental Quality In Nigeria
Nigeria is a high-polluting country, hence, carbon emissions from diverse sources tend to affect the quality of the environment. However, a high density of insurance companies in an area can lead to better risk managemen...
Income, Education, Age, Rural or Urban Living and Work Sector for Generation Z Women in West Nusa Tenggara, Indonesia
Generation Z is the generation born between 1997 and 2012. The characteristics of women's income, education, place of residence and work sector are very important to study because they can influence economic development,...
The Impact of Risk Management, Transformational Leadership on Corporate Financial Performance in the Global Era.
The purpose of this writing is to study and analyze the Impact of Risk Management, Transformational Leadership has an impact on Company Financial Performance. By studying and analyzing literature research in the field of...