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Financial industry at the crossroads between current practices and ethical virtues

Vol:0, №:0, Year:0

CROWDFUNDING MODELS – SURVEY ON BENEFITS AND DRAWBACKS, PROSPECTS AND CHALLENGES

Iustina Boitan
Faculty of Finance, Insurance, Banking and Stock Exchange, Department of Money and Banking - Bucharest University of Economic Studies
Romania

Teodora Barbu
Faculty of Finance, Insurance, Banking and Stock Exchange, Department of Money and Banking - Bucharest University of Economic Studies
Romania

Abstract
In recent years, a new typology of innovations in the area of alternative finance, known as crowdfunding, has recorded a significant dynamics, particularly in developed countries such as US and UK. The main aim of crowdfunding is to increase transparency in the way customers’ money is raised and spent, as an alternative to the opaqueness of using depositors, investors and shareholders’ money by retail banks. In our opinion, given the magnitude and dynamics of crowdfunding, we believe there are a number of legitimate interrogations about the impact this financial market democratization process may lead. Our paper proposes an exploratory approach, meant to investigate the prospects for development of this financial innovation in European Union countries, its return and risk pattern and its impact on existing financial market infrastructure and regulations.

References

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Key words
microfinance, crowdfunding models, risks, return, heterogeneity of regulation

Citation
Boitan I., Barbu T. 2015, “Crowdfunding models – survey on benefits and drawbacks, prospects and challenges” in Boitan I., Barbu T. (Eds.) Financial industry at the crossroads between current practices and ethical virtues (Studies in Philosophy, Law and Economics), Sumy: Taadler Publishing House, LTD, pp. 39-53. Available at http://taadler.com/a61

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