FinTech Strategy: Linking Entrepreneurship, Finance, and Technology

ISBN-13: 9783030539474 / Angielski / Miękka / 2022

Pável Reyes-Mercado

Opis

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.

Spis treści

Part I. The financial-entrepreneurial innovation-technology convergence

Chapter 1. How Fintech was born?

- The internet and data revolution

- The financial crisis and distrust in banks

- Unattended market niches

Chapter 2. Technological possibilities

- Technology as a resource

- Block chain technologies and distributed financial systems

- Data processing: Big data and artificial intelligence

- Enabling technologies: Sandboxes, cybersecurity, and application programming interfaces

Chapter 3. Entrepreneurship in the Fintech industry

- Opportunity and gap identification in the financial industry

o The product concept

o The business model

o Identification of market niche segments

- Opportunity exploitation

o Transformation of a product into a product strategy

o Innovative value proposition

o Positioning the value proposition

o Value capturing

- Venture outcomes

o Consumer value

o Venture valuation and exit value

o Scaling the venture

Part II. Exploring opportunities in Fintech

Chapter 4. Dynamics of Fintech and the broad financial industry

- Traditional dynamics: The incumbents

- Altered dynamics: Fintech

- Fintech entry strategies

- Competitive reactions

- Conducting a competitive analysis

- The interplay between innovation and regulation

Chapter 5. Financial consumer behavior and decision making

- Consumer behaviour and money

o Cognitive biases

o Heuristics

o Prospect theory

- Behaviour consumers and Fintech products

o Behaviors arising in payments, crowdsourcing, crowd lending, and cryptocurrencies

o Conducting experiments to assess consumer behaviour in Fintech

Chapter 6. Consumer segments in the Fintech market

o Niche and mass consumers in Fintech

o Banked and unbanked

o Digital and financial literacy segments

o Factors leading to adoption of Fintech product 

o Clustering techniques in Fintech

Chapter 7. Differentiation and sustainable competitive advantage

- Banking products and differentiation

- Attributes of Fintech products

- Differentiation factors

- Achieving a sustainable competitive advantage in Fintech: relationship vs transactionality

- Actionable framework to assess competitive advantages

Part III. Exploiting opportunities in Fintech

Chapter 8. Effectuation as a strategic approach

- Causal approach to strategy formation

- The suitability of effectuation as strategy in Fintech

- The effectuation approach

o Adaptation

o Problems as business opportunities

o Affordable losses

o Flexibility

o Resilience

- The liability of newness: Resource shortage, lack of brand awareness and trust

- An actionable effectuation framework in Fintech

Chapter 9. Developing a product-market fit

- Socio-technical approaches to Fintech

- Business viability and technology feasibility in Fintech

- Pricing, branding, and communication of the value proposal 

- Implementing the product-market fit

Chapter 10. Measuring venture performance

- Linking venture and financial metrics

- Purchase funnel metrics

- Investment attractors: Customer life time value and customer acquisition cost

- Exit value of a Fintech venture

- Analytics exemplary cases

Part IV. Broad outcomes of Fintech

Chapter 11. Societal outcomes of Fintech

- Societal impact of the Fintech industry

- Financial inclusion

- UN development objectives

- Digital and financial divide

- Money laundering and cashless society

Chapter 12. Designing a future for Fintech

- Design-based prospective strategies

- Trends identification for the Fintech industry

- A framework to prospect Fintech evolution

O autorze

Pável Reyes-Mercado is professor at Universidad Anáhuac, Mexico, where his research focuses upon the adoption of innovations, technology-enabled marketing, and entrepreneurial marketing. He is the author of Eco-Innovations in Emerging Markets and co-editor of Reverse Entrepreneurship in Latin America.

Blurb

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 offers scholars a comprehensive strategic view on FinTech from effectual, causal, and entrepreneurial innovation standpoints.

Pável Reyes-Mercado is professor at Universidad Anáhuac, Mexico, where his research focuses upon the adoption of innovations, technology-enabled marketing, and entrepreneurial marketing. He is the author of Eco-Innovations in Emerging Markets and co-editor of Reverse Entrepreneurship in Latin America.