Abstract
The financial sector is facing radical transformation. Leveraging digital technologies to offer innovative services, FinTech start-ups are emerging in domains such as asset management, lending, or insurance. Despite increasing investments, the FinTech phenomenon is low on theoretical insights. So far, the offerings of FinTech start-ups have been predominantly investigated from a functional perspective. As a functional perspective does not suffice to fully understand the offerings of FinTech start-ups, we propose a taxonomy of non-functional characteristics. Thereby, we restrict our analysis to consumer-oriented FinTech start-ups. Our taxonomy includes 15 dimensions structured along the perspectives interaction, data, and monetization. We demonstrate the applicability of our taxonomy by classifying the offerings of 227 FinTech start-ups and by identifying archetypes via a cluster analysis. Our taxonomy contributes to the descriptive knowledge on FinTech start-ups, enabling researchers and practitioners to analyze the service offerings of FinTech start-up in a structured manner.
Highlights
The financial sector is facing radical transformation
Against the increasing importance of FinTech start-ups for the financial sector, we investigated non-functional characteristics of consumer-oriented FinTech start-up service offerings
Contributing to the descriptive knowledge on FinTech start-ups, our taxonomy characterizes FinTech start-up service offerings based on 15 dimensions structured along the perspectives interaction, data, and monetization
Summary
The financial sector is facing radical transformation. FinTech start-ups, an abbreviation for financial technology start-ups, revolutionize how customers experience financial services (Mackenzie 2015). We iterated the taxonomy development process as follows: As for the meta-characteristic in step (1), we chose Bnon-functional characteristics of consumer-oriented FinTech start-up service offerings in the perspectives interaction, data, and monetization^. We incorporated our knowledge about the FinTech phenomenon gained through conferences, presentations, newspaper articles, FinTech start-ups, and discussions with representatives of financial service providers (Nickerson et al 2013) On this foundation, we identified 24 characteristics along 11 dimensions (i.e. personalization, information exchange, user network, role of IT, hybridization, channel strategy, data type, payment schedule, user’s currency, partner’s currency, and business cooperation). We filtered Bajorat’s list for service offerings of consumer-oriented FinTech start-ups and extracted 111 (out of 198) real-life examples Analyzing these real-life examples, we extended our taxonomy by 11 characteristics along 4 dimensions (i.e. interaction type, data source, time horizon, and data usage). Summarized, typical combinations of archetypes among the three perspectives interaction, data, and monetization exist, not between every pair
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