The impact of fintech disruption on trade finance within economic organisations

Abstract

This research investigates the impact of fintech disruption on trade finance within economic organisations, focusing on how technologies like Artificial Intelligence (AI), blockchain and open banking are transforming efficiency, cost frameworks and governance. Grounded in Transaction Cost Economics (TCE) and the Resource-Based View (RBV), the research explores how fintech innovation reduces coordination costs while enhancing organisational capabilities. A qualitative, interpretivist, and inductive methodology was employed, utilising semi-structured interviews with 16 respondents, comprising industry experts from economic organisations, fintech, and related industries. The results show that fintech makes operations more efficient, reduces transaction costs and encourages collaboration between traditional economic organisations and fintech firms through hybrid strategies. However, legacy infrastructure, regulation, and a skills shortage remain primary barriers to adoption. The research also finds that regulation acts as both an enabler and a constraint, with South Africa’s proactive frameworks showing that the potential for adaptive innovation, friendly compliance and regulation is a reality. The research contributes to the theory by integrating TCE and RBV, offering an emerging market perspective on digital transformation. Practically, it provides guidance for economic organisations, fintechs and regulators seeking to balance innovation, stability and inclusion within the trade finance ecosystem.