From the Institutional to the Platform Economy

Abstract

The article analyses the processes that are widely known in the literature as “the financial-technological revolution”, or FinTech. It shows that these processes derive from the global financial crisis of 2007–2008 that turned out to be a crisis of the institutional economy, or “the economy of transactions”. The authors determine the main directions for overcoming the crisis which over the past 10 years have formed new mainstream: a transition to Impact Investing aimed at implementing not only market values, but also socio-economic ones – Shared/Blended Values. The technological basis for new mainstream was the development of the third-level machines and technologies that are above energy and information technologies, i.e. value machines, or Intangible. In practice, FinTech is already undergoing rapid development in China and the West on the basis of digital platforms that eliminate transaction costs and generate added value and capitalization of property. The authors formulate the anticipated consequences of FinTech.

Keywords

• INSTITUTIONAL ECONOMY
• TRANSACTION COSTS
• FINANCIAL CRISIS
• IMPACT INVESTING IN TANGIBLE ASSETS
• DIGITAL PLATFORMS
• FINTECH