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What determines FinTech success?—A taxonomy-based analysis of FinTech success factors

Author

Listed:
  • Oliver Werth

    (OFFIS - Institute for Information Technology)

  • Davinia Rodríguez Cardona

    (Leibniz University Hannover)

  • Albert Torno

    (Georg-August-Universität Göttingen)

  • Michael H. Breitner

    (Leibniz University Hannover)

  • Jan Muntermann

    (Augsburg University)

Abstract

Value creation in the financial services sector has been fundamentally transformed by digitally born financial technology (FinTech) companies. FinTech companies synthesize information systems with financial services. Given its disruptive power, the FinTech phenomenon has received great attention in academic research, practice, and media. Still, limited systematic research provides a structure and holistic view of FinTechs’ success. Aiming to enhance understanding of the factors enabling FinTech success, we classify success factors across extant scientific literature on distinct FinTech business model archetypes. Our analysis reveals that the “cost–benefit dynamic of the innovation,” “technology adoption,” “security, privacy, and transparency,” “user trust,” “user-perceived quality,” and “industry rivalry” are crucial factors for FinTech success and can be seen as “grand challenges” for the FinTech ecosystem. In addition, we validate and discuss our findings with real-world examples from the FinTech industry and two interviews with stakeholders from the FinTech ecosystem. Our study contributes to the knowledge of FinTechs by providing a classification system of success factors for practitioners and researchers.

Suggested Citation

  • Oliver Werth & Davinia Rodríguez Cardona & Albert Torno & Michael H. Breitner & Jan Muntermann, 2023. "What determines FinTech success?—A taxonomy-based analysis of FinTech success factors," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-22, December.
    • Handle: RePEc:spr:elmark:v:33:y:2023:i:1:d:10.1007_s12525-023-00626-7
    DOI: 10.1007/s12525-023-00626-7
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    References listed on IDEAS

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    Cited by:

    1. Li, Xuetao & Jiang, Yufen & Xin, Xing & Nassani, Abdelmohsen A. & Yang, Chengying, 2024. "The asymmetric role of natural resources, fintech and green innovations in the Chinese economy. Evidence from QARDL approach," Resources Policy, Elsevier, vol. 90(C).
    2. Cheuk Hang Au & Kevin K. W. Ho & Kris. M. Y. Law & Dickson K. W. Chiu, 2024. "Critical success factors of users’ continuous intention of adopting cryptocurrency exchanges: LAS-VICT principle," Electronic Markets, Springer;IIM University of St. Gallen, vol. 34(1), pages 1-16, December.
    3. Preethi Vijayagopal & Bhawana Jain & Shyam Ayinippully Viswanathan, 2024. "Regulations and Fintech: A Comparative Study of the Developed and Developing Countries," JRFM, MDPI, vol. 17(8), pages 1-23, July.
    4. Lars Hornuf & Matthias Mattusch, 2024. "Fintech Startups in Germany: Firm Failure, Funding Success, and Innovation Capacity," CESifo Working Paper Series 11301, CESifo.

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    More about this item

    Keywords

    FinTech success factors; Taxonomy-based analysis; FinTech business models;
    All these keywords.

    JEL classification:

    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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