Business Models in Financial Technologies

Business Models in Financial Technologies

Mona Ebrahimi
Copyright: © 2023 |Pages: 20
DOI: 10.4018/978-1-6684-8368-8.ch005
OnDemand:
(Individual Chapters)
Available
$37.50
Current Special Offers
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

The world of finance has been transforming alongside the rapid growth of technology significantly. FinTech companies have emerged as a consequence of technological developments in the financial sector. Despite the upward trends in the growth of FinTech, they definitely need a business model to survive and grow in the competitive market. A FinTech business model includes operating strategy, revenue sources, and intended customer base. FinTech organizations need to adopt approaches to ensure their services and products are available to their customers across different platforms and are not necessarily reliant on a convoluted sign-up process. This chapter reviews the main considerations in FinTech business models, and the success factors of a business model, and provides a guide to having a business model that wins in the market.
Chapter Preview
Top

Fintech

Companies that employ technologies to offer financial services are recognized as FinTech companies. FinTech is also defined by the Financial Stability Board (FSB) as “technologically activated financial innovation, which could result in new business models, applications, processes or products with an associated material effect on financial markets and institutions and in the provision of financial services” (FSB, 2019).

Although the main focus of this definition is on the impact of FinTech in financial and banking institutions, it is worth considering that FinTech covers a broader range of innovative technologies in the financial sector with the aim of modernizing it or adding some value (Haddad & Hornuf, 2022). From the basic FinTech definition, it can be concluded that FinTech is focused not only on innovations in technology but also on shifts in business models. Employment of a new application that is provided by a FinTech company can make a significant impact on the business model of a financial institution and add value by decreasing the processing time or facilitating the process (Bellardini, Del Gaudio, Previtali, & Verdoliva, 2022). In addition, the unprecedented growth of digital transformation has led businesses to be encouraged to change their business models by employing FinTech services and products (Mărăcine, Voican, & Scarlat, 2020).

Complete Chapter List

Search this Book:
Reset