Global Finance at Crossroads - Undisrupted Flow or Global Woe? A qualitative approach to addressing financial fragmentation through understanding of networks and fintech

Abstract

Financial fragmentation has accelerated post the sanctions on Russia as a coalition of nations seek alternatives to Western financial infrastructure. A scenario where two, or several, financial systems operate without an intermediary would be disastrous as it calls for increased complexity of conducting transactions, geopolitical tensions, disruption of trade and regulatory challenges. This exploratory thesis uses a qualitative approach to explore how financial fragmentation can be addressed, and what role fintech might play in applying potential solutions. The study was conducted through four semi structured interviews, and by utilising a theoretical framework concerning concepts and methods on fintech, network theory and network science, the data was analysed by utilising thematic analysis. The empirical results suggest themes of political will, regulation, technology, and collaboration being key variables in addressing financial fragmentation. Findings of this study imply that political will is the most crucial variable to consider as it acts as a driving force for addressing fragmentation, and that fragmentation should be addressed through concepts and methods serving from theories on networks as they reveal embedded power dynamics.