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This chapter explores the vast array of fintech opportunities. The industry commanded approximately $250 billion in revenue in 2022, which is predicted to grow to $1.5 trillion by 2030. Fintech firms are involved in everything from digital currencies to payment systems, lending platforms, and embedded finance. Firms use artificial intelligence (AI) and machine learning (ML) to create personalized financial products. One of the most important benefits to society is that fintech makes finance more inclusive to the traditionally underserved. However, fintech has its challenges. Regulations evolve, making compliance a challenge. Also, the industry is vulnerable to cyberattacks and money laundering. Companies hold large amounts of sensitive data, making them obvious targets for bad actors. As with many industries, governance, compliance, and transparency are essential for fintechs as they transform the financial services landscape.

The Open API (application programming interface) architecture will play an important role in promoting future FinTech service applications; however, it involves user data, and the current specialization and progression are less visible. Therefore, an evaluation framework for Open API development in the FinTech service ecosystem is constructed in this study.

This study preliminarily selects the four most important key objects and factors of this ecosystem and conducts expert interviews to revise the evaluation framework. Then, this study uses the fuzzy analytic hierarchy process (FAHP) to evaluate the objects and their factor weights and finally uses the FAHP analysis results to further apply the evaluation based on distance from average solution (EDAS) approach to explore the strategy optimization scenarios.

According to the analysis results, the co-creation object and productivity object are the two most significant objects, with weights of 0.275 and 0.272, respectively. The analysis shows that FinTech-related companies expect to increase productivity through co-creation. Finally, the results also indicate that mobile payment is the best Open API application scenario in the FinTech service ecosystem, followed by online banking. These results illustrate strategic and management implications.

This study screens key evaluation criteria with a literature review and expert questionnaire interviews to process quantitative research. It can determine the weights of objectives and criteria to clarify the strength of influence between the objectives and criteria. Next, this study measures the probable performance of Open API applied in various FinTech service ecosystem scenarios.

This study investigates the impact of corporate governance on FinTech disclosure levels in Jordanian conventional and Islamic banks. It aims to determine whether governance mechanisms affect disclosure practices in the FinTech sector, exploring the interplay between governance and transparency in financial innovations.

The research methodology entails a thorough analysis of data from all 15 Jordanian conventional and Islamic banks listed on the Amman Stock Exchange, covering the period from 2015 to 2022. This study uses manual content analysis using a custom FinTech Disclosure Index (FDI) and quantitative analysis with a two-way clustered error regression model.

The findings show that corporate governance mechanisms, particularly board size, board meetings and “Big4” audit firms, are crucial in enhancing FinTech disclosure across conventional and Islamic banks. However, Islamic banks consistently show higher disclosure levels than their conventional counterparts, attributed to their distinct governance structures that emphasize ethical governance and transparency. These results indicate an awareness among decision-makers about the importance of business model transformation toward FinTech.

This study pioneers the introduction of FDI, using it for a novel comparative analysis of FinTech disclosure levels between Islamic and conventional banks. By exploring how various governance structures influence FinTech disclosure, this research provides fresh insights into the interplay between corporate governance and financial technologies in the banking sector.

Financial technologies or FinTech have replaced traditional financial services. Large investments have been made in FinTechs but there is a gap between service providers and consumers. Due to the high diversity and speed of changes, people still do not understand the new financial system and resist it. The success of the transition requires providing an opportunity for citizens' participation which is expressed with the term, financial citizenship. This study aims to focus on the citizenship dimension of FinTech transition and wants to analyze the influence of citizens in transition with a focus on financial technologies.

This study analyzed financial citizenship in FinTech transition by using a qualitative research method and grounded theory. The data were collected through open interviews with 26 FinTech players in Iran. Then the three-step process of open, axial and selective coding was performed and the main categories and relationships between them were identified.

Surveys have shown that educating and informing citizens provides the conditions for engagement and the formation of financial citizenship. Depending on citizens' level of awareness, they can play a role in the FinTech transition as customers, feedback providers or demanders. Of course, the disruption level of financial technological innovation affects the level of citizens' engagement. Finally, the conceptual model of financial citizenship provided and the effect of citizen participation on the FinTech transition has been analyzed.

This study is based on the belief that it is the citizens’ right to have a role in matters that directly affect their well-being. This role is not only the role of the customer and the user but goes beyond and becomes a role where citizens as players would be able to influence the technological transition like other interested players (policymakers and service providers). This research integrates the transition literature and financial citizenship; and analyzes the FinTech transition according to the position of citizens against FinTech developments.

After completion of the case study, the students will be able to explore the challenges involved in growing a business during its early stages inorganically, discuss the challenges faced by start-ups in their quest for growth in an emerging market, investigate the reasons behind the mergers and acquisitions, comprehend the issues in the merger of a start-up and a conventional bank, identify the various possible synergies out of the merger and examine the growth strategies that a troubled start-up such as Slice can follow to survive and expand its business operations.

The case study discusses the challenges that Slice, a modern fintech organization, and North East Small Finance Bank (NESFB) face due to the changing business and regulatory environment. After working tirelessly to earn the trust of India’s banking regulator, Slice got the approval for its merger with NESFB. While Slice and NESFB got a new lease of life after the approval of their merger, Rajan Bajaj, founder of Slice, needed to make the merger a success by leveraging on the strength of the combined entity and meeting all the lending and other regulatory requirements applicable to small finance banks.

This case study is suitable for MBA/MS/BBA/BS students.

Teaching notes are available for educators only.

CSS 11: Strategy.

This chapter examines the patterns influencing the trajectory of fintech enterprises. With the looming challenge of climate change, the financial realm's responsibility in mitigating climate risks has surged into focus. This chapter investigates fintech enterprises' response to climate-related corporate social responsibility in six main domains: (1) climate risk assessment tools, (2) green bonds and sustainable investment tools, (3) ESG integration, (4) carbon trading and carbon credits, (5) sustainable banking, and (6) DeFi and climate initiatives. It also investigates how fintech firms recognize the impact of climate change within their official declarations and efforts to amplify consciousness about climate-related concerns. This chapter assesses climate-linked terminology and expressions using quantitative and qualitative approaches, illuminating these firms' dedication to assimilating climate risk within their operational blueprints.

After completion of the case study, the students will be able to analyze the FinTech industry in emerging markets, distinguish the growth strategies for startups in the hyper-growth phase, using the Ansoff matrix, evaluate and select geographical markets for expansion (foreign country selection) and understand the liability of foreignness concept.

In 2015, Islam Shawky, Alain Al-Hajj and Mostafa Menessy founded Paymob in Egypt, a FinTech start-up providing technological and financial solutions to consumers and merchants in the country. The company had grown into one of Egypt’s most prominent digital payment providers by deploying infrastructure and technologies that empower the underserved with access to financial services. In 2021, Paymob had gained a lot of support from venture capital investors that ended with closing the largest in Egypt Series A fund of $18.5m led by Dubai-based venture capital firm Global Ventures. Although Paymob had already reached great success in Egypt, the founders’ vision was to become the regional leader of digital payments, focusing on small and medium-sized enterprises. So, they are considering regional markets similar to Egypt’s, such as the Kingdom of Saudi Arabia, a call with a lot of structure but a lot of competition, and Pakistan, a market with much less competition but relatively unstructured. The founders found themselves in early 2022 deciding between these two markets in preparation for the next round of Series B $50m funding.

This case study can be useful for courses in executive education.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.

Fintech has revolutionized personal finance, introducing innovative tools that offer unprecedented access, efficiency, and security in managing finances. This chapter explains fintech's personal finance applications, from intuitive budgeting apps and advanced robo-advisors to peer-to-peer payment platforms. It articulates how these tools have shifted the control and management of finances into the hands of consumers, providing real-time financial data, customized investment strategies, improved credit scores, and streamlined transactions that eliminate the need for traditional intermediaries. Furthermore, this chapter features a select list of FinTech50 firms and highlights how individuals can leverage their services. This comprehensive guide is invaluable for individuals seeking to leverage fintech for personal finance optimization and for professionals keen on understanding and navigating the rapidly evolving fintech landscape.

The paper’s main goal is to examine the relationship between the video marketing of financial technologies (Fintechs) and their vulnerable website customers’ brand engagement in the ongoing coronavirus disease 2019 (COVID-19) crisis.

To extract the required outcomes, the authors gathered data from the five biggest Fintech websites and YouTube channels, performed multiple linear regression models and developed a hybrid (agent-based and dynamic) model to assess the performance connection between their video marketing analytics and vulnerable website customers’ brand engagement.

It has been found that video marketing analytics of Fintechs’ YouTube channels are a decisive factor in impacting their vulnerable website customers’ brand engagement and awareness.

By enhancing video marketing analytics of their YouTube channels, Fintechs can achieve greater levels of vulnerable website customers’ engagement and awareness. Higher levels of vulnerable customers’ brand engagement and awareness tend to decrease their vulnerability by enhancing their financial knowledge and confidence.

Fintechs should aim to increase the number of total videos on their YouTube channels and provide videos that promote their customers’ knowledge of their services to increase their brand engagement and awareness, thus reducing their vulnerability. Moreover, Fintechs should be aware not to over-post videos because they will be in an unfavorable position against their competitors.

This research offers valuable insights regarding the importance of video marketing strategies for Fintechs in promoting their vulnerable website customers’ brand awareness during crisis periods.