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A Comparative Analysis of the Fintech Ecosystems in Romania and Estonia

Author

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  • Florin GROSU

    (Bucharest Business School, Romania)

Abstract

Romania and Estonia both have young fintech ecosystems that are growing rapidly and closing the gap with the more developed ecosystem in Western Europe. Although Romania is larger both in terms of population and GDP, the Romanian fintech ecosystem is almost 4 times smaller than the Estonian one. In this paper the author examines what are the factors that are contributing to the faster development of the Estonian ecosystem and whether some of these factors can be replicated in other countries, besides Romania. My results indicate that factors such as a government that is open to innovation and working with startups, a more international mindset of the startups and better collaboration between fintech startups themselves and between the startups and universities can accelerate the development of the ecosystem and help the startups grow faster. My results both confirm existing studies on the subject and can help the stakeholders in the ecosystem better work together to accelerate the development of the ecosystem and, ultimately, better service their clients. These success factors that have contributed to the faster development of the Estonian ecosystem can most, if not all, be replicated in Romania and other countries in the region to achieve similar, if not better results. The silver line between all this factor is a change in mindset that allows for a better collaboration between the stakeholders in the ecosystem, but also for improved individual business models and more innovative products and services that we can all benefit from.

Suggested Citation

  • Florin GROSU, 2022. "A Comparative Analysis of the Fintech Ecosystems in Romania and Estonia," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(5), pages 646-655, December.
  • Handle: RePEc:rom:rmcimn:v:23:y:2022:i:5:p:646-655
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    File URL: https://www.rmci.ase.ro/no23vol5/06.pdf
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    References listed on IDEAS

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    1. Parminder Varma & Shivinder Nijjer & Kiran Sood & Simon Grima & Ramona Rupeika-Apoga, 2022. "Thematic Analysis of Financial Technology (Fintech) Influence on the Banking Industry," Risks, MDPI, vol. 10(10), pages 1-17, September.
    2. Juan Camilo Mejia-Escobar & Juan David González-Ruiz & Eduardo Duque-Grisales, 2020. "Sustainable Financial Products in the Latin America Banking Industry: Current Status and Insights," Sustainability, MDPI, vol. 12(14), pages 1-25, July.
    3. Erik Feyen & Jon Frost & Leonardo Gambacorta & Harish Natarajan & Matthew Saal, 2021. "Fintech and the digital transformation of financial services: implications for market structure and public policy," BIS Papers, Bank for International Settlements, number 117.
    4. Lavinia-Andreea Gruia & Nicolae Bibu & Alexandru Roja & Doina Danaiață & Marian Năstase, 2022. "Digital Transformation of Businesses in Times of Global Crisis," Springer Proceedings in Business and Economics, in: Silvia L. Fotea & Ioan Ş. Fotea & Sebastian Văduva (ed.), Navigating Through the Crisis – A special Issue on the Covid 19 Crises, chapter 0, pages 43-62, Springer.
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    Cited by:

    1. Diana Maria Chi? & Irina-Iulia Salan?a, 2023. "WEB 3.0 and the Evolution of the World Wide Web," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(5), pages 717-735, December.

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    More about this item

    Keywords

    fintech; ecosystem; regulation; digital innovation; stakeholders;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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