FinTech versus banks : A war of distance ? (With Frederic Jouneau-Sion (Univ Lyon 2)).

Abstract: The emergence of remote services has reshaped many retail industries over the past two decades. Yet, despite early optimism, many online firms continue to struggle to achieve profitability, and numerous business models have fallen short of expectations. In the banking and financial sector, one possible explanation is that remote service provision still suffers from relatively low perceived reliability and reputation, as suggested by Foncel et al. (2011). This paper empirically assesses the relevance of this mechanism using firm-level data from the French banking sector. We adapt the original theoretical framework to this context and propose a structural econometric approach to quantify the impact of reputation and trust on the performance of fully remote banking services. Our results suggest that these services face persistent structural constraints, implying a long path toward sustainable profitability.

Decentralised Autonomous Organization (DAO): A Revolution of Trust in Financial Networks? (With Magali Chaudey (Univ Saint Etienne)).

Abstract: This paper investigates decentralized autonomous organizations (DAOs) on blockchain through the lens of trust production among participants. DAOs are defined as blockchain based organizations coordinated by open networks of agents, with governance that is theoretically decentralized and free of a central authority. Collaboration occurs through smart-contract enforced rules on-chain, complemented by off-chain coordination mechanisms. We make two contributions. First, we analyze trust systems in leading decentralized finance (DeFi) DAOs—Uniswap, MakerDAO, and Aave—focusing on the off-chain rules that structure these networks. Second, drawing on data from governance forums, we examine the roles assigned to participants and compare them with actual engagement using social network analysis. Our findings reveal the multi-layered nature of trust in DAOs and uncover latent hierarchical structures. Overall, we show that blockchain alone cannot fully replace trust: reputation mechanisms and agent-based trust remain critical for effective coordination. This study contributes to understanding how trust is produced and maintained within decentralized technologies.