The Role of Information Technology in Fintech Innovation: Insights from the European Fintech Ecosystem

Abstract

Fintech is an active area of innovation and a rapidly growing sector of the economy, yet relatively little is known about how information technology contributes to innovation in fintech. We draw on the business model canvas framework and we examine the role of information technology in the business models of leading European fintech startups. We find that information technology plays a key role across nearly all components of the fintech business models that we reviewed, orchestrating resources and processes to efficiently deliver personalized financial services to customers. Focusing on the IT-enabled value propositions across the fintech startups in our sample, we find that the startups tend to emphasize low-cost offerings that may pose a threat to incumbent business models in financial services.