Strategizing for Financial Technology Platforms: Findings from Four Russian Case Studies

Abstract

ABSTRACTThis article studies the business strategy of digital financial platforms and creation of ecosystems. The authors assume the general methodological approach of grounded theory to study four cases of financial technology platforms from Russia; the sample represents companies focusing both on solutions for the front end (consumers) and back end (middle of the value chain). The research finds that the top executives of the companies, which create and operate the digital platforms, have an approach to business strategy that is significantly different from that of the traditional business. They defy the pragmatism of predicting the market development and planning the company's actions in accordance with such predictions. Strategic paradigm of these companies is based on the notions of inclusivity, dynamism, and reliance on independent participants of a business ecosystem. Though a radical departure from the traditional business strategy, such an approach has brought demonstrable business success across the time span of a decade. The idea of “platform–ecosystem” can also be fruitful as a tool of solving important socioeconomic issues such as financial inclusion in the emerging markets.