Empirical Study On The Of E-Financial Innovation Diffusion

Because financial services are highly dependent on the computer and telecommunication technology, technological advances and the advent of the internet have led the revolutionary changes in the finance industry over the past decades. The importance of e-finance in modern economies has grown considerably. E-fmance activities include all types of financial activities carried out over the internet or other public networks, such as electronic money, electronic payment, online banking and electronic trading, etc. The dramatic development of the e-finance in some countries raises some interesting questions? Why one e-financial innovation failed to penetrate the market in one country while has a success in the other country? Why the diffusion have the different adoption rates depending on the services or locations? How about the dynamic modes of the diffusion process and the determinant factors? And what will be the influence on the structure of financial markets and institutions by the e-finance driving force?The document tries to give the answers to the above questions based on the empirical study. First, the comparable study has been given for the explanation of the different diffusion performance of the electronic payment and the electronic money in the developed countries, such as Belgium, the U.S., France and Germany. In the kernel part, the document presents several changed models and a new method of predicting, understanding and guiding the diffusion of e-financial innovation utilizing the Taiwan credit card as its primary example and the Verhulst model as their benchmark. The method of multiple curves can show the dynamic changes of the diffusion process more obviously and accurately. The changes on models allow them to qualitatively demonstrate an innovation's dynamic modes, and quantitively predict the innovation's future from the point of the different views. The change models constructed from the concepts including the changing direction of the per user utility, feedback function of the market response and the history dependence feature of the market development. Econometric testing has been also used to all the change models.Besides, the analysis has also been illustrated for the determinant factors of the e-financial innovation diffusion, such as the info infrastructure, network externalities, the short-term interest, market structure, etc. Afterwards the empirical study on the influence of the e-financial innovation diffusion has been given. It shows the evidence of more high concentrated structure in the industry than before because of the driving force of e-finance. The organization of the financial institution has also changed to make itself more suitable for the internalization of the network externalities in order to get more efficiency and profit. Finally the proposals for encouraging the financial innovation are given for the strategy making of financial intermediations and the regulation making of the supervisor.