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Transformation Through Unbundling: Visualizing the Global FinTech Ecosystem

Author

Listed:
  • Rahul C. Basole

    (School of Interactive Computing, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Shiv S. Patel

    (School of Interactive Computing, Georgia Institute of Technology, Atlanta, Georgia 30332)

Abstract

The infusion of digital technology into financial services, also known as FinTech, is creating a massive disruption of the entire financial sector. Services traditionally offered by incumbents are now rapidly unbundled by a growing set of startups, leading to new models of collaboration and a significant shift in power. This study provides insight into the structure of the FinTech ecosystem using data-driven visualizations of 6,493 global companies across 24 market segments. We focus on two types of ecosystem entities, namely, (1) firms that create, offer, and acquire FinTech services and (2) investors that fund and enable them. Our analyses reveal a highly skewed global footprint of FinTech activities, differential growth patterns across ecosystem segments, highly interdependent network structure, and a variegated nature of investments and acquisitions led by key incumbents and venture capital firms. We conclude with theoretical and managerial implications and discuss opportunities for future service ecosystem research.

Suggested Citation

  • Rahul C. Basole & Shiv S. Patel, 2018. "Transformation Through Unbundling: Visualizing the Global FinTech Ecosystem," Service Science, INFORMS, vol. 10(4), pages 379-396, December.
    • Handle: RePEc:inm:orserv:v:10:y:2018:i:4:p:379-396
    DOI: serv.2018.0210
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    Cited by:

    1. Zhang, Dongyang, 2023. "Can digital finance empowerment reduce extreme ESG hypocrisy resistance to improve green innovation?," Energy Economics, Elsevier, vol. 125(C).
    2. Yingying Zhang-Zhang & Sylvia Rohlfer & Jay Rajasekera, 2020. "An Eco-Systematic View of Cross-Sector Fintech: The Case of Alibaba and Tencent," Sustainability, MDPI, vol. 12(21), pages 1-25, October.
    3. Gregor Dorfleitner & Lars Hornuf & Lena Wannenmacher, 2020. "The German FinTech Market in 2020," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(08), pages 33-40, August.
    4. Sánchez, Marisa A., 2022. "A multi-level perspective on financial technology transitions," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    5. Mohammad Soltani Delgosha & Tahereh Saheb & Nastaran Hajiheydari, 2021. "Modelling the Asymmetrical Relationships between Digitalisation and Sustainable Competitiveness: A Cross-Country Configurational Analysis," Information Systems Frontiers, Springer, vol. 23(5), pages 1317-1337, September.
    6. Mansour Saleh Albarrak & Sara Ali Alokley, 2021. "FinTech: Ecosystem, Opportunities and Challenges in Saudi Arabia," JRFM, MDPI, vol. 14(10), pages 1-13, September.
    7. Lähteenmäki, Ilkka & Nätti, Satu & Saraniemi, Saila, 2022. "Digitalization-enabled evolution of customer value creation: An executive view in financial services," Journal of Business Research, Elsevier, vol. 146(C), pages 504-517.
    8. Emilio Abad-Segura & Mariana-Daniela González-Zamar & Eloy López-Meneses & Esteban Vázquez-Cano, 2020. "Financial Technology: Review of Trends, Approaches and Management," Mathematics, MDPI, vol. 8(6), pages 1-37, June.
    9. Yi Sun & Shihui Li & Rui Wang, 2023. "Fintech: from budding to explosion - an overview of the current state of research," Review of Managerial Science, Springer, vol. 17(3), pages 715-755, April.
    10. Merello, Paloma & Barberá, Antonio & la Poza, Elena De, 2022. "Is the sustainability profile of FinTech companies a key driver of their value?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    11. Albrecht Fritzsche & Alexander Bohnert, 2022. "Implications of bundled offerings for business development and competitive strategy in digital insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(4), pages 817-834, October.
    12. Javier Sada Bittini & Salvador Cruz Rambaud & Joaquín López Pascual & Roberto Moro-Visconti, 2022. "Business Models and Sustainability Plans in the FinTech, InsurTech, and PropTech Industry: Evidence from Spain," Sustainability, MDPI, vol. 14(19), pages 1-21, September.

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