Charting the Emerging Financial Services Ecosystem of Fintechs and Banks: Six Types of Data-Driven Business Models in the Fintech Sector

Abstract

The competition and the collaboration of established banks and challenging fintechs are expected to dramatically change the financial services ecosystem. The different types and roles of fintechs as new niche players in the ecosystem are not well understood so far. However, a better understanding of these types and roles is required for incumbent as well as for new actors for defining and aligning their strategies. In this paper, we analyze the business models of 195 fintech companies with a special focus on the role of data. Based on this analysis, we present a structured overview of fintechs' business areas as well as six data-related business model types. This paper contributes to the research on data-driven business models and business ecosystems by applying and modifying an existing approach for classifying new niche players based on the data dimension of their business models.

Introduction to the Minitrack on Managing the Dynamics of Platforms and Ecosystems

“…In 2018, papers in the "Managing Platforms and Ecosystems" minitrack applied data analytical methods to explore network development in a university-industry program [14], business models in an emerging Fintech sector [15], and value co-creation in the Internet of Things [16]. They examined the impact of social media on networks of hype [17] and reputation in a restaurant ecosystem [18].…”

Sustaining the current or pursuing the new: incumbent digital transformation strategies in the financial service industry

“…One particular research stream deals with digital platforms: Ondrus et al (2015) (Gozman et al 2018). Other analyses examine ecosystem moves from competition towards coopetition between banks and Fintech (Drasch et al 2018;Schmidt et al 2018) or insurances and Insurtech, respectively (Stoeckli et al 2018). More generally, some contributions shed light on how insurance companies cooperate with IT service providers to streamline their processed or reduce costs (Ejodame and Oshri 2018; Mani and Barua 2015; Willcocks and Lacity 1999;Zimmermann et al 2018).…”

A Framework for understanding & classifying Urban Data Business Models

“…Although various Business model ontologies [19], Matrices [28] etc. identify various dimensions of a business model, we follow Hartmann et al [16] approach (which has been utilized by IS researchers [26]) by focusing on the most commonly cited dimensions of a business model [16]. Hence, the higher level dimensions of the framework to explore consist of; 'Key Resources', 'Key Activities', 'Target Customer', 'Revenue Model', 'Value Proposition' & 'Cost Structure'.…”