Nurturing a FinTech ecosystem: The case of a youth microloan startup in China. Issue 2 (April 2017)

• Record Type: Journal Article
• Authors: Leong, Carmen; Tan, Barney; Xiao, Xiao; Tan, Felix Ter Chian; Sun, Yuan
• Is Part Of: International journal of information management. Volume 37:Issue 2(2017:Apr.)
• Page Start: 92
• Page End: 97
• Publication Date: 2017-04
• Subjects: FinTech -- Case study -- Online microloan -- Financial inclusion -- Ecosystem development; Social sciences -- Information services -- Periodicals; Social sciences -- Research -- Periodicals; Information science -- Periodicals; Management information systems -- Periodicals; Knowledge management -- Periodicals; Sciences sociales -- Documentation, Services de -- Périodiques; Sciences sociales -- Recherche -- Périodiques; Sciences de l'information -- Périodiques; Systèmes d'information de gestion -- Périodiques; Information science; Management information systems; Social sciences -- Information services; Social sciences -- Research; Periodicals; Electronic journals; 025.52068
• DOI: 10.1016/j.ijinfomgt.2016.11.006
• Languages: English
• ISSNs: 0268-4012

Abstract

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.