FinTech and FinTech ecosystem: A review of literature

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Abstract

This research aims to suggest a definition of FinTech, stating its main attributes based on the theoretical development of the field in academia. A systematic literature review (SLR) with the qualitative content analysis (QCA) method analyses about 22 research papers. These papers were selected based on the number of citations and their metrics, such as impact factors. After analyzing the literature, a definition of FinTech ecosystem is suggested with the roles played by stakeholders, for instance, lawmakers, information technology (IT) companies, traditional financial institutions, financial customers and investors affecting FinTech. This definition considers the framework offered by Au and Kauffman (2008). Further, the authors identify FinTech as a disruptive innovation and outline the main business models where FinTech operate blockchain, crowdfunding, payments, insurance, wealth and asset management, big data analysis, and application programming interface (API) are discussed with the roles they play. Lastly, competitive advantages and challenges encountered by FinTech are discussed which is an extension of work by Gomber, Koch, and Siering (2017). Further research can be done to understand the nature of each FinTech category and see the impact of regulations and collaborations on the economy and society.

Keywords: FinTech, Financial Ecosystem, Disruptive Innovation, Industry Convergence

Authors’ individual contribution: Conceptualization — Z.S. and C.A.R.; Methodology — Z.S.; Formal Analysis — Z.S.; Data Curation — Z.S.; Writing — Original Draft — Z.S.; Writing — Review & Editing — Z.S. and C.A.R.; Visualization — Z.S.; Supervision — C.A.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: The Authors would like to thank RTU Riga Business School for its financial support in the writing of this paper.

JEL Classification: M13, O31, Q55

Received: 01.03.2022
Accepted: 15.04.2022
Published online: 20.04.2022

How to cite this paper: Siddiqui, Z., & Rivera, C. A. (2022). FinTech and FinTech ecosystem: A review of literature. Risk Governance and Control: Financial Markets & Institutions, 12(1), 63–73. https://doi.org/10.22495/rgcv12i1p5