Fintechs are complementing and substituting traditional banks and financial institutions in different ways, enhancing financial inclusion through a diverse range of service offerings and localising financial intermediation using technology and digital infrastructure. Banks and incumbent financial institutions are interacting with fintech firms in various ways. This study initiates the academic conversation in that direction from an emerging economy perspective scrutinising the fintech funding for impacts emerging from bank and financial incumbent funding in comparison to independent venture capital financing. Probit regression models are employed for the full sample and sub-sample analysis. Primarily, fintech funded by banks as well as financial incumbents are found to achieve IPO exit outcomes. The subsample analysis suggests that the effect is stronger for finance-centric fintech and for firms which receive these fundings in the early financing rounds. The study generates implications for fintech firms, and incumbent financial institutions.
Fintech, a fusion of finance and technology, is changing the global financial landscape. The fast-evolving industry is fostering financial inclusion, enabling cost-effective and efficient financial intermediation. The entrepreneurial ecosystem of an economy is pivotal in shaping the prospects of innovations in an economy. This study is an initiative in that direction, evaluating the Fintech entrepreneurial ecosystem in India using a novel firm-level dataset of Indian Fintech startups. The study builds upon a theoretical framework, investigating the influence and interconnectedness of social and founder capital signals on Fintech startup funding in India. Incubator and/or accelerator engagement is considered for social capital signaling. Ordinary least squares and propensity score matching methods are employed for this study. Findings suggest a significant signaling effect from social capital factors: incubator or accelerator support. Sources of founders' entrepreneurial signals, founder network, and experience, have also been evidenced to influence funding received by Indian Fintech startups.
Fintechs are complementing and substituting traditional banks and financial institutions in different ways, enhancing financial inclusion through a diverse range of service offerings and localising financial intermediation using technology and digital infrastructure. Banks and incumbent financial institutions are interacting with fintech firms in various ways. This study initiates the academic conversation in that direction from an emerging economy perspective scrutinising the fintech funding for impacts emerging from bank and financial incumbent funding in comparison to independent venture capital financing. Probit regression models are employed for the full sample and sub-sample analysis. Primarily, fintech funded by banks as well as financial incumbents are found to achieve IPO exit outcomes. The subsample analysis suggests that the effect is stronger for finance-centric fintech and for firms which receive these fundings in the early financing rounds. The study generates implications for fintech firms, and incumbent financial institutions.
Cleantech startups have emerged globally as a major force in clean energy development and energy transition. This study examines the cleantech ecosystem in ASEAN, its origins, spread, and factors determining funding. Handpicked data shows Singapore dominates, followed by Indonesia. Most cleantech startups were founded during 2010–2020. The Paris Agreement may provide impetus. Empirical analysis suggests that number, education, and experience of startup founders, as well as how long they have been in business, contribute positively to their funding. Most surprising is the negative impact of female founders on financing, as well as the mixed impact of quantities of patents and trademarks. Analysis also shows regional heterogeneity and a need for proper adoption strategies and encouragement at the country level. ASEAN should focus on industry-linked education, promoting scientific collaborations, support for incubators and accelerators, and generous research grants to cleantech startups. We recommend an intra-ASEAN accelerator to make cleantech spread more evenly.
Innovation is the primary driver of progress and growth within a society, and digital innovations aid in reducing digital divide and promote inclusivity. Owing to the exponential growth of digital innovations in the last decade, the study of their effect on the venture survival is of paramount importance. In this light, we check for the survival of globally innovative digital ventures India, which is the third largest digitised economy. A novel data sample has been sourced for the digital ventures established in India between 2005-2021 for conducting empirical analysis. Probit regressions suggest that the globally innovative digital startups in India have smaller chance of surviving. Further subsample analysis suggests that among these young firms and startups, the effect is more pronounced in the fintech, healthtech and internet related ventures, especially in the Bangalore region.
Green bonds have emerged as a formidable source of clean energy financing. Many economies are issuing green bonds to bridge the financing gap between climate change commitments and the cost of clean energy financing. This study explores the green bonds ecosystem in ASEAN to understand its composition, structure, and market dynamics. Specifically, the study aims to document the firm-level trends of green bonds for Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The primary motivation comes from the fact that the energy transition efforts have shown enormous interest in issuing green bonds in these countries. The composition also indicates that the trend is more visible in the case of corporates issuing green bonds through bonds and Islamic Sukuk with greenium. The overview suggests that Malaysia leads the green bond issuance space in ASEAN with the motive of investing in solar parks and solar power stations. Coupon rate also highlights the role of greenium, which can be compared with the types of bonds issued. The statistical analysis suggests the presence of a greenium or yield discount for green bonds. The relationship between green and non-green bond yield spreads is positive and increases as the risk of the bonds increases. For low-risk bonds, the yield spread of green bonds increases at a slower rate, suggesting greenium, deviating from the assumptions of linearity often used in conventional models. Overall, the analysis provides a comprehensive outlook of the green bond ecosystem in ASEAN.