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Nurturing a FinTech ecosystem: The case of a youth microloan startup in China

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  • Leong, Carmen
  • Tan, Barney
  • Xiao, Xiao
  • Tan, Felix Ter Chian
  • Sun, Yuan

Abstract

Financial technology, or FinTech, involves the design and delivery of financial products and services through technology. It impacts financial institutions, regulators, customers, and merchants across a wide range of industries. Pervasive digital technologies are challenging the fundamentals of the highly regulated financial sector, leading to the emergence of non-traditional payment systems, peer-to-peer money exchanges and increased turbulence in currency markets. This case study explores the development of a FinTech company in China that offers microloans to college students. Five lessons learned are presented for organizations to better manage the challenges and to leverage the opportunities amidst the disruption of financial sector. Our findings also shed light on how digital technology 1) offers the strategic capability for a firm to occupy a market niche in financial sector, 2) enables the generation of alternative credit scores based on non-traditional data, and 3) improves the financial inclusion of previously excluded market segments.

Suggested Citation

  • Leong, Carmen & Tan, Barney & Xiao, Xiao & Tan, Felix Ter Chian & Sun, Yuan, 2017. "Nurturing a FinTech ecosystem: The case of a youth microloan startup in China," International Journal of Information Management, Elsevier, vol. 37(2), pages 92-97.
    • Handle: RePEc:eee:ininma:v:37:y:2017:i:2:p:92-97
    DOI: 10.1016/j.ijinfomgt.2016.11.006
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    References listed on IDEAS

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    1. Geert Van Campenhout, 2015. "Revaluing the Role of Parents as Financial Socialization Agents in Youth Financial Literacy Programs," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 186-222, March.
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    1. Yue, Pengpeng & Korkmaz, Aslihan Gizem & Yin, Zhichao & Zhou, Haigang, 2022. "The rise of digital finance: Financial inclusion or debt trap?," Finance Research Letters, Elsevier, vol. 47(PA).
    2. Tang, Mengxuan & Hu, Yang & Corbet, Shaen & Hou, Yang (Greg) & Oxley, Les, 2024. "Fintech, bank diversification and liquidity: Evidence from China," Research in International Business and Finance, Elsevier, vol. 67(PA).
    3. María Camila Bermeo-Giraldo & Alejandro Valencia-Arias & Lucia Palacios-Moya & Jackeline Valencia, 2023. "Adoption of Fintech Services in Young Students: Empirical Approach from a Developing Country," Economies, MDPI, vol. 11(9), pages 1-19, September.
    4. Zhao, Jinsong & Li, Xinghao & Yu, Chin-Hsien & Chen, Shi & Lee, Chi-Chuan, 2022. "Riding the FinTech innovation wave: FinTech, patents and bank performance," Journal of International Money and Finance, Elsevier, vol. 122(C).
    5. Pandey, Dharen Kumar & Hassan, M.Kabir & Kumari, Vineeta & Zaied, Younes Ben & Rai, Varun Kumar, 2024. "Mapping the landscape of FinTech in banking and finance: A bibliometric review," Research in International Business and Finance, Elsevier, vol. 67(PA).
    6. Choudhary, Priya & Thenmozhi, M., 2024. "Fintech and financial sector: ADO analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 93(C).
    7. Gallego-Losada, María-Jesús & Montero-Navarro, Antonio & García-Abajo, Elisa & Gallego-Losada, Rocío, 2023. "Digital financial inclusion. Visualizing the academic literature," Research in International Business and Finance, Elsevier, vol. 64(C).
    8. Guo, Junyan & Fang, Hanqing & Liu, Xuexin & Wang, Cizhi & Wang, Yuan, 2023. "FinTech and financing constraints of enterprises: Evidence from China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 82(C).
    9. Baabdullah, Abdullah M. & Alalwan, Ali Abdallah & Rana, Nripendra P. & Kizgin, Hatice & Patil, Pushp, 2019. "Consumer use of mobile banking (M-Banking) in Saudi Arabia: Towards an integrated model," International Journal of Information Management, Elsevier, vol. 44(C), pages 38-52.
    10. Tamilmani, Kuttimani & Rana, Nripendra P. & Prakasam, Naveena & Dwivedi, Yogesh K., 2019. "The battle of Brain vs. Heart: A literature review and meta-analysis of “hedonic motivation” use in UTAUT2," International Journal of Information Management, Elsevier, vol. 46(C), pages 222-235.
    11. Pattnaik, Debidutta & Hassan, M. Kabir & Dsouza, Arun & Tiwari, Aviral & Devji, Shridev, 2023. "Ex-post facto analysis of cryptocurrency literature over a decade using bibliometric technique," Technological Forecasting and Social Change, Elsevier, vol. 189(C).

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