Toward understanding FinTech and its industry

Abstract

Purpose The purpose of this study is to define FinTech, differentiating it from financial technology and use the definition to develop an industry framework. Design/methodology/approach Using the existing literature on FinTech and incorporating these contributions into a traditional financial structure, characteristics are outlined and placed into a framework that describes the FinTech industry. Findings FinTech is a specific type of Financial Technology, defined as technology used to provide financial markets a financial product or financial service, characterized by sophisticated technology relative to existing technology in that market. Firms that primarily use FinTech are classified as FinTech firms. Using these definitions, the paper provides a structure for the FinTech industry, classifying each type of FinTech firm by FinTech characteristics. Research limitations/implications Research that would inform the economic importance of FinTech would be served with an increased understanding of FinTech firms and the FinTech industry. Originality/value This paper contributes by defining FinTech and developing a comprehensive framework to describe the emerging FinTech industry.