Scaling consumer fintech ventures : how firms seek to extend their initial technology advantage and capture value over time

The fintech sector has experienced intense interest from financial industry participants as the number of fintech start-ups has proliferated and robust growth statistics have prompted financial sector incumbents to respond with their own investments in the sector. As a result of the rapid increase in competition, innovators who have created value have found challenges to capture and deliver this value to end users with sustainable business models. This thesis presents the results of a study of the leading fintech firms using the lens of a value capture and value delivery framework. The framework reveals not only how these firms have successfully navigated through this challenging landscape, but also how they need to be aware of the evolving competitive dynamics over time. The insights presented have implications for potential entrants that seek to launch a consumer focused fintech firm. In particular, a review of the experiences of the most prominent fintech firms reveals how they have used technology to uncover under-served markets and have sought to differentiate themselves and extend their initial advantage by scaling and through strategic partnerships with incumbents.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2017

Author dc:creator

• Okudo, Melkizedeck S

Advisor dc:contributor.advisor

• Duncan Simester.

• Sloan School of Management.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/111447

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/111447