FinTech Strategy: Linking Entrepreneurship, Finance, and Technology

Description

This book explores how new and small ventures with comparatively fewer financial resources have been able to compete with big banks and financial institutions. It discusses entry, competition, and growth strategies based on new business models enacted by current FinTech ventures. An analysis of strategies for Fintech and of cases from banked as well as non-banked and underbanked customer segments produces a framework based on effectuation, resulting in a final discussion of the broad societal outcomes of FinTech related to financial inclusion, the digital divide, and the UN’s Sustainable Development Goals. This book, linking theory with practical application, offers scholars a comprehensive strategic view on FinTech from effectual, causal, and entrepreneurial innovation standpoints. Preface Acknowledgments Contents Abbreviations List of Figures List of Tables Part I The Financial-Entrepreneurial Innovation-Technology Convergence 1 How Fintech Was Born? 1.1 The “Fin” in Fintech: Recent Evolution of the Financial Industry 1.2 The “Tech” in Fintech: The Internet and Data Revolution 1.3 A Growing Cohort of Pushing Entrepreneurs 1.4 The Fintech Ecosystem 1.5 The Fintech Product Line 1.5.1 Payments 1.5.2 Crowdlending 1.5.3 Investments 1.5.4 Insurance 1.5.5 Regulation 1.6 Conclusion References 2 Technology as a Resource for FinTech 2.1 The Resource-based View of the Firm 2.2 Dynamic Capabilities 2.3 Consequence: Sustainable Competitive Advantage 2.3.1 Brands 2.3.2 Value Proposal 2.3.3 Customer Relationships 2.4 A Case Study Connecting Resources and Capabilities in Fintech 2.5 A Survey of Technologies 2.5.1 Block Chain 2.5.2 Big Data 2.5.3 Artificial Intelligence 2.5.4 Applications Programming Interfaces 2.6 Conclusion References 3 Entrepreneurship in the FinTech Industry 3.1 Is There Anything Left to Innovate? 3.2 Taxonomy of Innovations 3.3 Methodologies for Innovation Management 3.3.1 Drivers of Innovation Methodologies 3.3.2 Innovation Stage-Gate Process 3.3.3 Agile Methodologies 3.4 Open Models of Innovation 3.4.1 Sources: R&D, Employees, and Customers 3.4.2 Open Banking 3.4.3 Influence of Financial Regulation in Fintech Innovation 3.5 Entrepreneurial Innovation 3.6 Scaling and Exit Values 3.7 Conclusion References Part II Exploring and Exploiting Opportunities in Fintech 4 Dynamics of Fintech and the Broad Financial Industry 4.1 Financial Industry 4.2 Traditional Dynamics: Incumbents 4.3 Altered Dynamics: New Fintech Players 4.4 Fintech Entry Strategies 4.4.1 Entering the Market 4.4.2 Growing in the Market 4.5 Competitive Reactions 4.5.1 Compete 4.5.2 Collaborate 4.5.3 Co-opete 4.6 Factors to Consider When Engaging in Fintech Alliances as Growth Strategies 4.7 A Framework to Assess Alliance Opportunities in Fintech 4.8 Conclusion References 5 Financial Consumer Behavior and Decision-Making 5.1 Consumer Goals 5.2 Self-Efficacy and Self-Control 5.3 The Role of Financial Education 5.4 Prospect Theory 5.5 Heuristics 5.6 Cognitive Biases and Goals 5.7 Credence 5.8 Technology Adoption 5.9 Risk and Trust 5.10 How to Understand Consumer Behavior in Fintech 5.11 Conclusion References 6 Consumer Segments in the Fintech Market 6.1 Consumers Segments and Market Orientation 6.2 Models and Frameworks to Understand Consumer Segments 6.3 Clustering Techniques 6.4 A Value-Based Segmentation 6.5 Segmenting by CLV 6.6 Strategic Framework to Address Segments in Fintech 6.6.1 Find Markets 6.6.2 Select the Segment 6.6.3 Prepare to Talk to Your Segment 6.7 Conclusion References 7 Differentiation and Sustainable Competitive Advantage 7.1 Attributes of Fintech Products That Make a Difference 7.1.1 Generation of Unique Datasets from Fintech Products 7.1.2 Intensive Data Analysis for Prediction 7.1.3 Use of Multi-Sided Digital Platforms 7.2 Network Effects 7.3 Sources of Sustainable Competitive Advantage 7.3.1 Economies of Networks 7.3.2 Counter Position 7.3.3 Branding 7.3.4 Cornered Resources 7.3.5 Process-Based 7.4 Conclusion References 8 Effectuation as a Strategic Approach 8.1 Managerial Differences with Fintech 8.2 Causal Approach for Big Corporations 8.3 Realities of Fintech in the Financial Industry 8.4 Effectuation for Fintech Entrepreneurship 8.5 Entrepreneurial Marketing 8.6 An Ambidextrous Framework 8.7 Conclusion References 9 Measuring Venture Performance 9.1 Importance of Marketing Metrics 9.2 The Strategic Marketing Process 9.3 Systems of Metrics for Marketing Processes 9.3.1 Online Metrics 9.3.2 Offline Metrics 9.3.3 Attribution Problem 9.3.4 Product, Brand, and Price Metrics 9.4 Building a Metrics System to Track Business Goals 9.5 Conclusion References Part III Broad Outcomes of Fintech 10 Societal Outcomes of Fintech 10.1 Changes in Financial Industry 10.2 Societal Outcomes of Fintech 10.2.1 Inclusion 10.2.2 Development 10.2.3 Poverty Reduction 10.2.4 Women Empowerment 10.2.5 Sustainability 10.3 Pending Challenges 10.3.1 Access Is Not Enough 10.3.2 Digital Divide 10.3.3 Financial Divide 10.3.4 Money Laundering 10.3.5 Another Systemic Financial Crisis? 10.4 Ethics in Fintech 10.5 Conclusion References 11 What’s Next: Assembling Fintech Futures 11.1 Looking Back and Forward 11.2 Trends Identification for the Fintech Industry 11.3 An Assemblage Framework to Prospect Fintech Evolution 11.4 A Combined Framework to Assemble Fintech Futures 11.5 Conclusion References Index