fintech case study

• Digital Marketing
• Facebook Marketing
• Instagram Marketing
• Ecommerce Marketing
• Content Marketing
• Data Science Certification
• Machine Learning
• Artificial Intelligence
• Data Analytics
• Graphic Design
• Adobe Illustrator
• Web Designing
• UX UI Design
• Interior Design
• Front End Development
• Back End Development Courses
• Business Analytics
• Entrepreneurship
• Supply Chain
• Financial Modeling
• Corporate Finance
• Project Finance
• Harvard University
• Stanford University
• Yale University
• Princeton University
• Duke University
• UC Berkeley
• Harvard University Executive Programs
• MIT Executive Programs
• Stanford University Executive Programs
• Oxford University Executive Programs
• Cambridge University Executive Programs
• Yale University Executive Programs
• Kellog Executive Programs
• CMU Executive Programs
• 45000+ Free Courses
• Free Certification Courses
• Free DigitalDefynd Certificate
• Free Harvard University Courses
• Free MIT Courses
• Free Excel Courses
• Free Google Courses
• Free Finance Courses
• Free Coding Courses
• Free Digital Marketing Courses

Top 10 FinTech Case Studies [A Detailed Exploration] [2024]

In the dynamic realm of financial technology—often abbreviated as FinTech—groundbreaking innovations have revolutionized how we interact with money, democratizing access to myriad financial services. No longer confined to traditional banking and financial institutions, today’s consumers can easily invest, transact, and manage their finances at their fingertips. Through a deep dive into the top five FinTech case studies, this article seeks to illuminate the transformative power of financial technology. From trailblazing start-ups to industry disruptors, we will unravel how these companies have reshaped the financial landscape, offering invaluable lessons for consumers and future FinTech leaders.

Top 10 FinTech case studies [A Detailed Exploration] [2024]

Case study 1: square – democratizing payment processing.

Launched in 2009 by Twitter co-founder Jack Dorsey, Square sought to fill a gaping hole in the financial services market—accessible payment processing for small businesses. In an industry overshadowed by high costs and complexity, Square introduced a game-changing point-of-sale (POS) system, using a tiny card reader that could be plugged into a smartphone.

Key Challenges

1. High Costs: The financial burden of traditional payment systems made it difficult for small businesses to participate, affecting their growth and market reach.

2. Complexity: Legacy systems were cumbersome, requiring hefty upfront investments in specialized hardware and software, with a steep learning curve for users.

3. Limited Accessibility: Many small businesses had to resort to cash-only operations, losing potential customers who preferred card payments.

Related: Important FinTech KPIs Explained

Strategies Implemented

1. User-Friendly Hardware: Square’s portable card reader was revolutionary. Easy to use and set up, it integrated seamlessly with smartphones.

2. Transparent Pricing: A flat-rate fee structure eliminates hidden costs, making budgeting more predictable for businesses.

3. Integrated Business Solutions: Square went beyond payment processing to offer additional services such as inventory management, analytics, and loans.

Results Achieved

1. Market Penetration: As of 2023, Square boasted over 4 million sellers using its platform, solidifying its market position.

2. Revenue Growth: Square achieved significant financial gains, reporting $4.68 billion in revenue in Q2 2021—a 143% year-over-year increase.

3. Product Diversification: Expanding its ecosystem, Square now offers an array of services from payroll to cryptocurrency trading through its Cash App.

Key Learnings

1. Simplicity is Key: Square’s user-centric design proved that simplifying complex processes can open new markets and encourage adoption.

2. Holistic Ecosystems: Offering integrated services can foster customer loyalty and increase lifetime value.

3. Transparency Builds Trust: A clear, straightforward fee structure can differentiate a FinTech solution in a market known for its opaqueness.

4. Accessibility: Providing easy-to-use and affordable services can empower smaller businesses, contributing to broader economic inclusion.

Related: Benefits of Green FinTech for Businesses

Case Study 2: Robinhood – Democratizing Investment

Founded in 2013, Robinhood burst onto the financial scene with a disruptive promise—commission-free trading. Unlike traditional brokerage firms that charged a fee for every trade, Robinhood allowed users to buy and sell stocks at no direct cost. The platform’s user-friendly interface and sleek design made it particularly appealing to millennials and Gen Z, demographics often underrepresented in the investment world.

1. High Commissions: Traditional brokerages often had fee structures that discouraged individuals, especially younger investors, from participating in the stock market.

2. Complex User Interfaces: Many existing trading platforms featured clunky, complicated interfaces that were intimidating for novice investors.

3. Limited Access: Entry-level investors often felt the investment landscape was an exclusive club beyond their financial and technical reach.

1. Commission-Free Trading: Robinhood’s flagship offering eliminated the financial barriers that commissions presented, inviting a new cohort of individual investors into the market.

2. User-Friendly Design: A sleek, intuitive interface made stock trading less intimidating, broadening the platform’s appeal.

3. Educational Resources: Robinhood provides educational content to help novice investors understand market dynamics, equipping them for more informed trading.

1. Market Disruption: Robinhood’s model has pressured traditional brokerage firms to rethink their fee structures, with several following suit by offering commission-free trades.

2. User Growth: As of 2023, Robinhood has amassed over 23.2 million users, a testament to its market penetration.

3. Public Scrutiny: Despite its success, Robinhood has not been without controversy, especially regarding its revenue model and lack of transparency. These issues have sparked widespread debate about ethical practices in fintech.

1. User-Centricity Drives Adoption: Robinhood’s easy-to-use platform illustrates that reducing friction encourages higher user engagement and diversifies the investor base.

2. Transparency is Crucial: The controversies surrounding Robinhood serve as a cautionary tale about the importance of transparent business practices in building and maintaining consumer trust.

3. Disruption Spurs Industry Change: Robinhood’s entry forced a reevaluation of longstanding industry norms, underscoring the influence a disruptive FinTech company can wield.

Related: How to Get an Internship in the FinTech Sector?

Case Study 3: Stripe – Simplifying Online Payments

Founded in 2010 by Irish entrepreneurs Patrick and John Collison, Stripe set out to solve a significant problem—simplifying online payments. During that time, businesses looking to accept payments online had to navigate a complex labyrinth of banking relationships, security protocols, and regulatory compliance. Stripe introduced a straightforward solution—APIs that allow businesses to handle online payments, subscriptions, and various other financial transactions with ease.

1. Complex Setup: Traditional online payment methods often require cumbersome integration and extensive documentation.

2. Security Concerns: Handling financial transactions online raised issues about data safety and compliance with financial regulations.

3. Limited Flexibility: Most pre-existing payment solutions were not adaptable to specific business needs, particularly for start-ups and SMEs.

1. Simple APIs: Stripe’s suite of APIs allowed businesses to integrate payment gateways effortlessly, removing barriers to entry for online commerce.

2. Enhanced Security: Stripe implemented robust security measures, including tokenization and SSL encryption, to protect transaction data.

3. Customization: Stripe’s modular design gave businesses the freedom to tailor the payment experience according to their specific needs.

1. Broad Adoption: Stripe’s intuitive and secure payment solutions have attracted a diverse client base, from start-ups to Fortune 500 companies.

2. Global Reach: As of 2023, Stripe operates in over 46 countries, testifying its global appeal and functionality.

3. Financial Milestone: Stripe’s valuation skyrocketed to $50 billion in 2023, making it one of the most valuable FinTech companies globally.

1. Ease of Use: Stripe’s success proves that a user-friendly, straightforward approach can go a long way in attracting a wide range of customers.

2. Security is Paramount: Handling financial data requires stringent security measures, and Stripe’s focus on secure transactions sets an industry standard.

3. Scalability and Flexibility: Providing a modular, customizable solution allows businesses to scale and adapt, increasing customer satisfaction and retention.

Related: FinTech Skills to Add in Your Resume

Case Study 4: Coinbase – Mainstreaming Cryptocurrency

Founded in 2012, Coinbase set out to make cryptocurrency trading as simple and accessible as using an email account. At the time, the world of cryptocurrency was a wild west of complicated interfaces, murky regulations, and high-risk investments. Coinbase aimed to change this by offering a straightforward, user-friendly platform to buy, sell, and manage digital currencies like Bitcoin, Ethereum, and many others.

1. User Complexity: Before Coinbase, cryptocurrency trading required high technical know-how, making it inaccessible to the average person.

2. Security Risks: The lack of centralized governance in the crypto world led to various security concerns, including hacking and fraud.

3. Regulatory Uncertainty: The absence of clear regulations concerning cryptocurrency created a hesitant environment for both users and investors.

1. User-Friendly Interface: Coinbase developed a sleek, easy-to-use platform with a beginner-friendly approach, which allowed users to start trading with just a few clicks.

2. Enhanced Security: The platform incorporated advanced security features such as two-factor authentication (2FA) and cold storage for digital assets to mitigate risks.

3. Educational Content: Coinbase offers guides, tutorials, and other educational resources to help demystify the complex world of cryptocurrency.

1. Mass Adoption: As of 2023, Coinbase had over 150 million verified users, contributing significantly to mainstreaming cryptocurrencies.

2. Initial Public Offering (IPO): Coinbase went public in April 2021 with a valuation of around $86 billion, highlighting its commercial success.

3. Regulatory Challenges: While Coinbase has succeeded in democratizing crypto trading, it continues to face scrutiny and regulatory hurdles, emphasizing the sector’s evolving nature.

1. Accessibility Drives Adoption: Coinbase’s user-friendly design has played a pivotal role in driving mass adoption of cryptocurrencies, illustrating the importance of making complex technologies accessible to everyday users.

2. Security is a Selling Point: In an ecosystem rife with security concerns, robust safety measures can set a platform apart and attract a broader user base.

3. Regulatory Adaptability: The ongoing regulatory challenges highlight the need for adaptability and proactive governance in the fast-evolving cryptocurrency market.

Related: Top FinTech Interview Questions and Answers

Case Study 5: Revolut – All-In-One Financial Platform

Founded in 2015, Revolut started as a foreign currency exchange service, primarily focusing on eliminating outrageous foreign exchange fees. With the broader vision of becoming a financial super-app, Revolut swiftly expanded its services to include digital banking, stock trading, cryptocurrency exchange, and other financial services. This rapid evolution aimed to provide users with an all-encompassing financial solution on a single platform.

1. Fragmented Services: Before Revolut, consumers had to use multiple platforms for various financial needs, leading to a fragmented user experience.

2. High Costs: Traditional financial services, particularly foreign exchange and cross-border payments, often have hefty fees.

3. Slow Adaptation: Conventional banking systems were slow to integrate new financial technologies, leaving a gap in the market for more agile solutions.

1. Unified Platform: Revolut combined various financial services into a single app, offering users a seamless experience and a one-stop solution for their financial needs.

2. Competitive Pricing: By leveraging FinTech efficiencies, Revolut offered competitive rates for services like currency exchange and stock trading.

3. Rapid Innovation: The platform continually rolled out new features, staying ahead of consumer demand and forcing traditional institutions to catch up.

1. User Growth: As of 2023, Revolut has amassed over 30 million retail customers, solidifying its reputation as a financial super-app.

2. Revenue Increase: In 2021, Revolut’s revenues climbed to approximately $765 million, indicating its business model’s viability.

3. Industry Influence: Revolut’s multi-functional capabilities have forced traditional financial institutions to reconsider their offerings, pushing the industry toward integrated, user-friendly solutions.

1. User-Centric Design: Revolut’s success stems from its focus on solving real-world consumer problems with an easy-to-use, integrated platform.

2. Agility Wins: In the fast-paced world of fintech, the ability to innovate and adapt quickly to market needs can be a significant differentiator.

3. Competitive Pricing is Crucial: Financial services have always been a cost-sensitive sector. Offering competitive pricing can draw users away from traditional platforms.

Related: Surprising FinTech Facts and Statistics

Case Study  6 : Chime – Revolutionizing Personal Banking

Essential term: digital banking.

Digital banking represents the digitization of all traditional banking activities, where financial services are delivered predominantly through the internet. This innovation caters to a growing demographic of tech-savvy users seeking efficient and accessible banking solutions.

Founded in 2013, Chime entered the financial market with a bold mission: to redefine personal banking through simplicity, transparency, and customer-centricity. At a time when traditional banks were mired in fee-heavy structures and complex service models, Chime introduced a revolutionary no-fee model complemented by a streamlined digital experience, challenging the status quo of personal banking.

1. Fee-Heavy Structure: Traditional banks heavily relied on various fees, including overdraft and maintenance charges, alienating a significant portion of potential customers, particularly those seeking straightforward banking solutions.

2. Complexity and Inaccessibility: Conventional banking systems were often marred by cumbersome procedures and lacked user-friendly interfaces, making them less appealing, especially to younger, more tech-savvy generations.

3. Customer Service: The traditional banking sector frequently struggled with providing proactive and responsive customer service, creating a gap in customer satisfaction and engagement.

1. No-Fee Model: By eliminating common banking fees such as overdraft fees, Chime positioned itself as a customer-friendly alternative, significantly attracting customers frustrated with traditional banking penalties.

2. User-Friendly App: Chime’s app was designed with user experience at its core, offering an intuitive and accessible platform for everyday banking operations, thereby enhancing overall customer experience.

3. Automatic Savings Tools: Chime innovated with features like automatic savings round-up and early paycheck access, designed to empower customers in their financial management.

1. Expansive Customer Base: Chime successfully captured a broad market segment, particularly resonating with millennials and Gen Z, evidenced by its rapid accumulation of millions of users.

2. Catalyst for Innovation: The company’s growth trajectory and model pressured traditional banks to reassess and innovate their fee structures and service offerings.

3. Valuation Surge: Reflecting its market impact and success, Chime’s valuation experienced a substantial increase, marking its significance in the banking sector.

1. Customer-Centric Approach: Chime’s journey underscores the importance of addressing customer pain points, such as fee structures, and offering a seamless digital banking experience, which can be instrumental in rapid user base growth.

2. Innovation in Features: The introduction of genuinely helpful financial management tools can significantly differentiate a FinTech company in a competitive market.

3. Disruptive Influence: Chime’s success story illustrates how a digital-first approach can disrupt and challenge traditional banking models, paving the way for new, innovative banking experiences.

Related: Is FinTech Overhyped?

Case Study  7 : LendingClub – Pioneering Peer-to-Peer Lending

Essential term: peer-to-peer (p2p) lending.

Peer-to-Peer (P2P) lending is a method of debt financing that enables individuals to borrow and lend money without using an official financial institution as an intermediary. This model directly connects borrowers and lenders through online platforms.

LendingClub, founded in 2006, emerged as a trailblazer in the lending industry by introducing a novel P2P lending model. This innovative approach offered a substantial departure from the traditional credit system, typically dominated by banks and credit unions, aiming to democratize access to credit.

1. High-Interest Rates: Traditional loans were often synonymous with high-interest rates, rendering them inaccessible or financially burdensome for many borrowers.

2. Limited Access to Credit: Conventional lending mechanisms frequently sidelined individuals with lower credit scores, creating a significant barrier to credit access.

3. Intermediary Costs: The traditional lending process involves numerous intermediaries, leading to additional costs and inefficiencies for borrowers and lenders.

1. Direct Platform: LendingClub’s platform revolutionized lending by directly connecting borrowers with investors, reducing the overall cost of obtaining loans.

2. Risk Assessment Tools: The company employed advanced algorithms for assessing the risk profiles of borrowers, which broadened the spectrum of loan accessibility to include individuals with diverse credit histories.

3. Streamlined Process: LendingClub’s online platform streamlined the loan application and disbursement processes, enhancing transparency and efficiency.

1. Expanded Credit Access: LendingClub significantly widened the avenue for credit, particularly benefiting those with less-than-perfect credit scores.

2. Influencing the Market: The P2P lending model introduced by LendingClub prompted traditional lenders to reconsider their rates and processes in favor of more streamlined, borrower-friendly approaches.

3. Navigating Regulatory Hurdles: The journey of LendingClub highlighted the intricate regulatory challenges of financial innovation, underscoring the importance of adaptive compliance strategies.

1. Efficiency of Direct Connections: Eliminating intermediaries in the lending process can lead to substantial cost reductions and process efficiency improvements.

2. Broadening Credit Accessibility: FinTech can play a pivotal role in democratizing access to financial services by implementing innovative risk assessment methodologies.

3. Importance of Regulatory Compliance: Sustainable innovation in the FinTech sector necessitates a keen awareness and adaptability to the evolving regulatory landscape.

Related: Who is a FinTech CTO?

Case Study  8 : Brex – Reinventing Business Credit for Startups

Essential term: corporate credit cards.

Corporate credit cards are specialized financial tools designed for business use. They offer features like higher credit limits, rewards tailored to business spending, and, often, additional tools for expense management.

Launched in 2017, Brex emerged with a bold vision to transform how startups access and manage credit. In a financial landscape where traditional corporate credit cards posed steep requirements and were often misaligned with the unique needs of burgeoning startups, Brex introduced an innovative solution. Their model focused on the company’s cash balance and spending patterns rather than relying on personal credit histories.

1. Inaccessibility for Startups: Traditional credit systems, with their reliance on extensive credit history, were largely inaccessible to new startups, which typically lacked this background.

2. Rigid Structures: Conventional corporate credit cards were not designed to accommodate rapidly evolving startups’ fluid and dynamic financial needs.

3. Personal Guarantee Requirement: A common stipulation in business credit involves personal guarantees, posing a significant risk for startup founders.

1. No Personal Guarantee: Brex innovated by offering credit cards without needing a personal guarantee, basing creditworthiness on business metrics.

2. Tailored Financial Solutions: Understanding the unique ecosystem of startups, Brex designed its services to be flexible and in tune with their evolving needs.

3. Technology-Driven Approach: Utilizing advanced algorithms and data analytics, Brex could assess the creditworthiness of startups in a more nuanced and comprehensive manner.

1. Breaking Barriers: Brex made corporate credit more accessible to startups, removing traditional barriers.

2. Market Disruption: By tailoring its product, Brex pressures traditional financial institutions to innovate and rethink its credit card offerings.

3. Rapid Growth: Brex’s unique approach led to rapid adoption within the startup community, significantly growing its customer base and market presence.

1. Adapting to Market Needs: Brex’s success underscores the importance of understanding and adapting to the specific needs of your target market.

2. Innovative Credit Assessment: Leveraging technology for credit assessment can open new avenues and democratize access to financial products.

3 Risk and Reward: The move to eliminate personal guarantees, while riskier, positioned Brex as a game-changer, highlighting the balance between risk and innovation in FinTech.

Related: Is FinTech a Dying Career Industry?

Case Study  9 : SoFi – Transforming Personal Finance

Essential term: financial services platform.

A financial services platform offers a range of financial products and services, such as loans, investment options, and banking services, through a unified digital interface.

SoFi, short for Social Finance, Inc., was founded in 2011 to revolutionize personal finance. Initially focused on student loan refinancing, SoFi quickly expanded its offerings to include a broad spectrum of financial services, including personal loans, mortgages, insurance, investment products, and a cash management account. This expansion was driven by a vision to provide a one-stop financial solution for consumers, particularly catering to the needs of early-career professionals.

1. Fragmented Financial Services: Consumers often had to navigate multiple platforms and institutions to manage their various financial needs, leading to a disjointed financial experience.

2. Student Loan Debt: Many graduates needed more flexible and affordable refinancing options with student debt escalating.

3. Accessibility and Education: A significant segment of the population lacked access to comprehensive financial services and the knowledge to navigate them effectively.

1. Diverse Financial Products: SoFi expanded its product range beyond student loan refinancing to include a suite of financial services, offering more holistic financial solutions.

2. Tech-Driven Approach: Utilizing technology, SoFi provided streamlined, user-friendly experiences across its platform, simplifying the process of managing personal finances.

3. Financial Education and Advice: SoFi offered educational resources and personalized financial advice, positioning itself as a partner in its customers’ financial journey.

1. Expanding Consumer Base: SoFi succeeded in attracting a broad customer base, especially among young professionals looking for integrated financial services.

2. Innovation in Personal Finance: The company’s expansion into various financial services positioned it as a leader in innovative personal finance solutions.

3. Brand Recognition and Trust: With its comprehensive approach and focus on customer education, SoFi built a strong brand reputation and trust among its users.

1. Integrated Services Appeal: Offering a broad array of financial services through a single platform can attract customers seeking a unified financial management experience.

2. Leveraging Technology for Ease: Using technology to simplify and streamline financial services is key to enhancing customer experience and satisfaction.

3. Empowering Through Education: Providing users with financial education and advice can foster long-term customer relationships and trust.

Related: FinTech vs Investment Banking

Case Study  10 : Apple Pay – Redefining Digital Payments

Essential term: mobile payment system.

A mobile payment system allows consumers to make payments for goods and services using mobile devices, typically through apps or integrated digital wallets.

Launched in 2014, Apple Pay marked Apple Inc.’s foray into the digital payment landscape. It was introduced with the aim of transforming how consumers perform transactions, focusing on enhancing the convenience, security, and speed of payments. Apple Pay allows users to make payments using their Apple devices, employing Near Field Communication (NFC) technology. This move was a strategic step in leveraging the widespread use of smartphones for financial transactions.

1. Security Concerns: The rising incidences of data breaches and fraud in digital payments made consumers skeptical about the security of mobile payment systems.

2. User Adoption: Convincing consumers to shift from traditional payment methods like cash and cards to a digital platform requires overcoming ingrained habits and perceptions.

3. Merchant Acceptance: For widespread adoption, a large number of merchants needed to accept and support Apple Pay.

1. Enhanced Security Features: Apple Pay uses a combination of device-specific numbers and unique transaction codes, ensuring that card numbers are not stored on devices or servers, thereby enhancing transaction security.

2. Seamless Integration: Apple Pay was designed to work seamlessly with existing Apple devices, offering an intuitive and convenient user experience.

3. Extensive Partnership with Banks and Retailers: Apple forged partnerships with numerous banks, credit card companies, and retailers to ensure widespread acceptance of Apple Pay.

1. Widespread Adoption: Apple Pay quickly gained a significant user base, with millions of transactions processed shortly after its launch.

2. Market Leadership: Apple Pay became one of the leading mobile payment solutions globally, setting a standard in the digital payment industry.

3. Influence on Payment Behaviors: The introduction of Apple Pay substantially accelerated the shift towards contactless payments and mobile wallets.

1. Trust Through Security: The emphasis on security can be a major driving force in user adoption of new financial technologies.

2. Integration and Convenience: A system that integrates seamlessly with users’ daily lives and provides tangible convenience can successfully change long-standing consumer habits.

3. Strategic Partnerships: Building a network of partnerships is key to the widespread acceptance and success of a new payment system.

These stories of globally renowned FinTech trailblazers offer invaluable insights, providing a must-read blueprint for anyone looking to make their mark in this rapidly evolving industry.

1. Square shows that focusing on user needs, especially in underserved markets, can drive innovation and market share.

2. Robinhood serves as both an inspiration and a cautionary tale, advocating for democratization while emphasizing the importance of ethical practices.

3. Stripe proves that simplifying complex processes through customizable, user-friendly solutions can redefine industries.

4. Coinbase highlights the transformative potential of making new financial instruments like cryptocurrency accessible while reminding us of regulatory challenges.

5. Revolut sets the bar high with its user-centric, all-in-one platform, emphasizing the need for agility and competitive pricing in the sector.

The key to FinTech success lies in simplicity, agility, user focus, and ethical considerations. These case studies serve as guiding lights for future innovation, emphasizing that technological superiority must be balanced with customer needs and ethical responsibilities.

• 8 Challenges of Working with Gen Z [2024]
• Pros and Cons of Reverse Mentoring [2024]

Team DigitalDefynd

We help you find the best courses, certifications, and tutorials online. Hundreds of experts come together to handpick these recommendations based on decades of collective experience. So far we have served 4 Million+ satisfied learners and counting.

Role of Data Analytics in Fintech [2024]

Is Fintech a Stressful Industry? [2024]

20 Important Fintech KPIs Explained [2024]

Can you move from Finance to Marketing? [2024]

Finance Manager vs Finance Controller [2024]

Top 10 Personal Finance Tips for Working Professionals [2024]

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Case Study: Will a Bank’s New Technology Help or Hurt Morale?

• Leonard A. Schlesinger

A CEO weighs the growth benefits of AI against the downsides of impersonal decision making.

Beth Daniels, the CEO of Michigan’s Vanir Bancorp, sat silent as her chief human resources officer and chief financial officer traded jabs. The trio had founded their community bank three years earlier with the mission of serving small-business owners, particularly those on the lower end of the credit spectrum. After getting a start-up off the ground in a mature, heavily regulated industry, they were a tight-knit, battle-tested team. But the current meeting was turning into a civil war.

• Leonard A. Schlesinger is the Baker Foundation Professor at Harvard Business School, where he serves as chair of its practice-based faculty.

Partner Center

Paytm Case Study: The Journey of India's Leading FinTech Company

Devashish Shrivastava

Paytm is India's one of the biggest fintech startups founded in August 2010 by Vijay Shekhar Sharma. The startup offers versatile instalments, e-wallet, and business stages. Even though it began as an energizing stage in 2010, Paytm has changed its plan of action to become a commercial centre and a virtual bank model. It is likewise one of the pioneers of the cashback plan of action.

Paytm has changed itself into an Indian mammoth managing versatile instalments, banking administrations, commercial centre, Paytm gold, energize and charge installments, Paytm wallet and many other provisions which serve around 100 million enlisted clients.

The areas served by Paytm are India, Canada, and Japan, it is also accessible in 11 Indian dialects . It offers online use-cases as versatile energizes, service charge installments, travel, motion pictures, and occasions appointments. In-store instalments at markets, leafy foods shops, cafés, stopping, tolls, drug stores and instructive establishments can be accessed through the Paytm QR code.

One 97 Communications, the parent company of Paytm, is all set to raise its capital target of over ₹16,600 crores ($2.2 billion) through an IPO that it had filed earlier in July 2021. Paytm is seeking to raise $25 billion to $30 billion valuation post this IPO.

According to the organization, more than 7 million traders crosswise over India utilize its QR code to acknowledge instalments straightforwardly into their bank account. The organization uses commercials and pays a special substance to produce income. Let's look at this detailed case study on Paytm to know more about its growth and future plans.

Paytm - Latest News Origin of Paytm Business Model of Paytm Business Growth of Paytm Expected Future Growth of Paytm Why was Paytm Removed from Google Play Store?

Paytm - Latest News

1st November 2021 - The much-awaited Paytm IPO was launched with a price band of ₹ ₹2,080-2,150 per share.

13th October 2021 - Paytm users can now store Aadhaar, driving license, vehicle RC, insurance via Digilocker. Digilocker Mini App on Paytm offers access to these documents to users even when they're offline or in a low connectivity zone.

8th October 2021 - Paytm is looking forward to bringing in sovereign wealth funds as anchor investors in the company's pre-IPO placement.

5th October 2021 - Switzerland-based insurance giant, Swiss RE might join Paytm's insurance business' board.

3rd October 2021 - Paytm has acquired 100% stakes in CreditMate, a Mumbai-based digital lending startup.

Origin of Paytm

The saga and the emergence of Paytm are discussed in this section of the case study of Paytm. It was established in August 2010 with underlying speculation of $2 million by its originator Vijay Shekhar Sharma in Noida, an area nearby India's capital New Delhi .

It began as a prepaid portable and DTH energize stage, and later included information card, postpaid versatile and landline charge installments in 2013. By January 2014, the organization propelled the Paytm pocketbook, and the Indian Railways and Uber included it as an installment option.

It propelled into web-based business with online arrangements and transport ticketing.

In 2015, it disclosed more use-cases like instruction expenses, metro energizes power, gas, and water charge installments. Paytm likewise began driving the installment passage for the Indian Railways.

In 2016, Paytm propelled motion pictures, occasions, and entertainment meccas ticketing just as flight ticket appointments and Paytm QR. Later that year, it propelled rail bookings and gift vouchers . Paytm's enrolled client base developed from 11.8 million in August 2014 to 104 million in August 2015. Its movement business crossed $500 million in annualized GMV run rate, booking two million tickets for each month.

In 2017, Paytm became India's first installment application to traverse 100 million application downloads. That year, it propelled Paytm Gold, an item that enables clients to purchase as meagre as ₹1 of unadulterated gold on the web . It additionally propelled the Paytm Payments Bank and 'Inbox', and informing stage with in-talk installments among other products.

By 2018, it began enabling dealers to acknowledge Paytm UPI and card installments straightforwardly into their financial balances at 0% charge. It likewise propelled the 'Paytm for Business' application, enabling traders to follow their installments and everyday settlements instantly. This drove Paytm's shopper base to more than 7 million by March 2018.

The organization propelled two new riches—Paytm Gold Savings Plan and Gold Gifting—to rearrange long haul savings. It propelled into diversion and speculations, and stripe alongside AGTech to dispatch the stage of a transportable game Gamepind, and putting in Paytm cash with a venture of ₹9 large integers to bring venture and riches as board items for Indians. In May 2019, Paytm joined forces with Citibank to dispatch credit cards .

Business Model of Paytm

Paytm or "Payment Through Mobile" is India's biggest installment, trade, and e-wallet undertaking. It began in 2010 and is a brand of the parent organization One97 Communications, established by Vijay Shekhar Sharma. It was propelled as an online portable energize site and proceeded to change its plan of action to a virtual and commercial centre bank model.

The organization stands today as one of India's biggest online portable administrations that incorporates banking administrations, commercial centres, versatile installments, charge installments, and energize. It has so far given administrations to more than 100 million clients.

Paytm's enhancement has built a solid reputation and has turned out to be praiseworthy for some in the online installment industry. One of its increasingly vital accomplishments is in its joint effort with the Chinese web-based business Goliath, Alibaba for immense measures of subsidizing.

Aside from being a pioneer of the cashback plan of action, the organization has been commended for its introduction as a new business able to build huge partnerships in a limited time period.

Clients of Paytm Business

Paytm's core focus is on serving its Indian client base, especially the cell phone clients. Numerous Indian clients saw the computerized world as an opportunity to open a financial balance. Accessing simple online installments missed the mark, and clients wound up with only poor experience. Paytm presented itself as a superior option to deal with such situations.

Paytm Offers

A portion of Paytm's increasingly conspicuous suggestions was reviving the business which was the organization's underlying administration recommendation.

At that point, it proceeded to differentiate and progressed to creating more current administrations from any semblance of Paytm Wallet, E-business vertical to Digital Gold.

These improvements were appreciated in the form of the Chinese mammoth Alibaba's favours. Immense totals of cash were pumped into Paytm by Alibaba, expanding Paytm's speculation potential. Paytm used cricket and TV promotion to capture more clients.

Relationship with Clients

Paytm has a 24*7 client care focus to interface with its clients. Simultaneously, the vast majority of Paytm administrations are self-served in nature and are open through their foundation straightforward.

Paytm's Channel for Business

Paytm utilizes numerous channels to draw in clients. Aside from its very own site which drives clicks, Paytm has shaped associations with numerous customers and seller destinations that support its endeavour. Demonetization in India enabled the organization to succeed altogether and arrive at new clients too. Disconnected advertising is likewise a piece of their client procurement process.

Distinct Advantages

The RBI (Reserve Bank of India) permit fills in as Paytm's fundamental asset. It should be explicit to Paytm. Different assets like the plan/programming society make it simpler for lower-pay Indians to use Paytm.

Paytm, being an innovation stage, dangers perils, for example, security and misrepresentation which is the reason it needs to take viable measures in ensuring its buyer's cash by improving its security. It is likewise rolling out new improvements inside its foundation to draw in new clients and access their computerized wallets.

Partners of Paytm

Paytm accomplices with the banks that give it installment excursions into the financial framework just as escrow administrations. It works together with a heap of associations that accumulate bills and installments from its customers for its administration.

Structure of Costing

Paytm serves numerous clients which is the motivation behind why it is so cost-driven. The vast majority of its costs are identified with its foundation and client obtaining. It's a typical cost-shared by numerous organizations over the reality where client securing cost is significant.

The cash utilized in this procedure is higher than the income it makes in its underlying buys. Most of its financial limit is to put resources into sloping up of its security and stay away from the danger of misrepresentation, particularly when it needs to deal with more than 65 million clients in its foundation. It incorporates a framework that empowers clients to avoid any tax evasion hazard .

Revenue Model of Paytm

The Paytm revenue models come in two structures. Paytm makes commissions from the client exchanges through their utilization of its foundation. Escrow Accounts are the accounts from where it creates their income. Inferable from the non-appearance of its hidden capital, it offers clients no intrigue. Starting in 2018 Paytm has aggregated 3314.8 crore INR in income.

Paytm Wallet

Paytm wallet is one of Paytm's best benefits that structures a connection between the bank and the retailers. This semi-shut wallet empowers you to take care of your tabs, pay for your tickets, or pay anyone concerned.

Paytm wallet separated from its profit, as approved by the RBI, has the advantage of accepting enthusiasm for a purchaser store, much the same as some other Payment Gateways .

When you store a specific measure of cash in your Paytm wallet, it will at that point set aside that cash in another bank from which it will win enthusiasm eventually.

It is the Paytm wallet's fundamental capacity. For instance, suppose you make an installment of Rs. 1000  to a merchant and the vendor makes 10 exchanges to increase Rs. 10,000. If the installment of that sum is made through the Paytm wallet, the Paytm wallet will take a portion of about 1% of the aggregate sum. So the merchant will get around Rs. 9715.

Mobile Recharge Business

Since its origin in 2010, Paytm's underlying intention was to give online portable energizing administrations. Its capacity to create income was constantly shortsighted. Paytm's administration guidelines are as praiseworthy and proficient as those of other telecom specialist co-ops running from Vodafone to Telecom.

The administrations are without shortcomings and give solace to their clients. As of now, Paytm increases a commission of 2-3% per energize. It is because Paytm, attributable to its support to its client to keep reviving through its foundation, has more grounded power in dealing than different merchants. That is the reason the commission it obtains is so high. This commission from its revive administration fills in as its income.

These administrations have supported the organization essentially in extending its base and thus, developing exponentially. When the client is fulfilled by the administration or item, he makes an arrival to a similar undertaking in this manner. This way Paytm does client maintenance and produces more traffic . Paytm has used this methodology to further its potential benefit and keeps on reaping positive results.

Paytm Digital Gold Paytm Digital Gold

Inferable from its organization with MMTC-PAMP, the outstanding gold purifier, Paytm has propelled "Computerized Gold". This model enables clients to sell, purchase, or store gold in an advanced stage. Presently, clients need to pay at a rate just to get their gold conveyed to their families.

Paytm is very much aware of how much gold is put as a resource in India and is completely arranged to develop from this chance. The organization has made eminent arrangements to urge its clients to get their own Gold Bank Accounts individually. This record separated from empowering clients to purchase their gold will likewise furnish clients with simple access to other Paytm administrations.

In February 2017, Paytm propelled its Paytm Mall application which enables purchasers to shop from 1.4 lakh enrolled sellers. Paytm Mall is a B2C model enlivened by the model of China's biggest B2C retail stage, TMall. For 1.4 lakh merchants enlisted, items need to go through Paytm-guaranteed stockrooms and channels to guarantee buyer trust.

Paytm Mall has set up 17 satisfaction focuses crosswise over India and joined forces with 40+ messengers. Paytm Mall raised $200 million from Alibaba Cluster and SAIF Partners in March 2018. In May 2018, it posted losses of roughly Rs 1,800 crore with an income of Rs 774 crore for money related to the year 2018. Moreover, the piece of the pie in Paytm Mall dropped to 3% in 2018 from 5.6% in 2017.

Business Growth of Paytm

Advanced installments organization Paytm has professed to arrive at gross exchange esteem (GTV) of over $50 billion, while checking 5.5 billion exchanges in FY19. The Delhi NCR-based organization credited this development to the rising appropriation of Paytm over numerous utilization cases, for example, retail installments, expenses, utility installments, travel booking , excitement, games among others. It has as of late propelled membership-based prizes program (Paytm First) to aid development alongside expanding the client maintenance.

Discussing the feasible arrangements, senior VP of Paytm, Deepak Abbot stated, "We are centred around creating tech-driven arrangements, incorporated client lifecycle the board, upgrading the client experience and growing to Tier 4-5 urban communities. We are certain to accomplish 12 Bn exchanges before the part of the bargain year." Before a month ago, the Ministry Of Electronics and Information Technology (MeitY) had solicited Paytm to help its objective of encouraging 40 Bn advanced exchanges in FY20.

The organization shared designs to incorporate man-made brainpower in its model and achieve 2x development this year. Paytm professed to possess half piece of the installment entryway industry in India, with 400 Mn month to month exchanges on the stage.

Established by Vijay Shekhar Sharma in 2010, Paytm furnishes various new companies and huge organizations with arrangements running from a shareable PaytmQR code to profound coordination.

It empowers clients to process computerized installments through any favoured installment mode including credit and check cards, net banking, Paytm wallet, and UPI (bound together installment interface). Paytm had likewise propelled its very own installments bank in 2017.

Paytm Payments Bank is versatile first keep money with zero charges on every online exchange, (for example, IMPS, NEFT, RTGS) and no base equalization prerequisite. For investment accounts, the bank right now offers a loan cost of 4% per annum.

Expected Future Growth of Paytm

Computerized installments organization Paytm said it is looking to dramatically increase its exchange volume to 12 billion by part of the arrangement, from 5.5 billion out of 2018-19.

Paytm checked 2.5 billion exchanges in 2017-18. Paytm said it accomplished gross exchange esteem (GTV) of $50 billion out of 2018-19, as contrasted and $25 billion every year prior. GTV is the estimation of all-out exchanges done on the stage.

"This expansion is a consequence of the fast development in the reception of Paytm's computerized installments arrangements crosswise over on the web and disconnected for different use cases including retail installments, charges, utility installments, travel booking, amusement, games and that's only the tip of the iceberg,"

The organization said in an announcement. Its membership-based program Paytm First was propelled in March has pulled into equal parts a million supporters, the organization added.

Paytm has 350 million enrolled clients starting on 5 June, an organization authority said. Paytm offers a variety of installment alternatives that incorporate installment through portable wallets, just like ongoing installment framework Unified Payments Interface (UPI) and web banking.

The organization has been centred around structure instruments for dealers to streamline their everyday business needs. This has brought about enormous dealers obtaining who are very much furnished with innovation to acknowledge all installment modes (cards, wallet, and UPI). Paytm now intends to concentrate on embracing computerized reasoning and improving the UI .

Why was Paytm Removed from Google Play Store?

Paytm India app was removed from Google Play Store because it violated Google guidelines. While other apps like Paytm for Business, Paytm mall , Paytm Money, and a few more were still available. But after a few hours of being taken down, the Paytm app was back on Google Play Store.

#Paytm out of Google Play Store. Google: We don’t allow online casinos/support any unregulated gambling apps that facilitate sports betting. It includes if app leads consumers to an external website that allows them to participate in paid tournaments to win real money/cash prizes pic.twitter.com/poeZzXw5nA — CNBC-TV18 (@CNBCTV18Live) September 18, 2020

“We have these policies to protect users from potential harm. When an app violates these policies, we notify the developer of the violation and remove the app from Google Play until the developer brings the app into compliance. And in the case where there are repeated policy violations, we may take more serious action which may include terminating Google Play Developer accounts. Our policies are applied and enforced on all developers consistently,” Google Added.

Is Paytm a fintech company?

Yes, Paytm is India's leading and one of the most valued fintech startups founded by Vijay Shekar Sharma in 2010.

What are the areas served by Paytm?

Paytm is a leading fintech startup that not only operates in India but it also serves Canada and Japan.

When was Paytm established?

Paytm was founded in 2010 by Vijay Shekar Sharma.

What is Paytm and how does it work?

Paytm is a leading financial service and bill payments app that offers financial solutions to its customers, offline merchants and online platforms. All you need to do is open the Paytm app on your phone, click on 'Pay', and select 'QR code'. Scan the QR code of the receiver and enter the amount to be paid. The money will be transferred in a few seconds.

How much does Vijay Shekhar Sharma own in Paytm?

Vijay Shekhar Sharma currently owns 14.61% of the company.

Must have tools for startups - Recommended by StartupTalky

• Convert Visitors into Leads- SeizeLead
• Payment Gateway- Razorpay
• Spy on your Competitors- Adspyder
• Manage your business smoothly- Google Workspace

Predictive Analytics in Healthcare: Utilizing AI to Anticipate and Minimize Adverse Health Events

This article has been contributed by Dr Narendra Vankar, Co-Founder, Quantum CorpHealth Pvt. Ltd. India’s health landscape is rapidly evolving. We are moving towards the best possible medical care with experienced, trained doctors; new advancements in medical technology; and the introduction of personalized, AI-based healthcare, perfectly tailored to fit

Inside the Profit Engine: How Online Marketplaces Monetize Beyond Sales?

Online marketplaces have revolutionized commerce, transforming the way we buy and sell goods and services. These platforms connect a diverse range of buyers and sellers, creating a dynamic virtual marketplace that fosters convenience, choice, and often, competitive pricing. But how do these online marketplaces themselves turn a profit?  The Rise

How to Craft an Impressive Internship Resume: Step-by-Step Guide

This article has been contributed by Mr. Rajat Vashishta, Career Coach & Founder, Resumod. The job market has become quite competitive and an internship is the stepping stone for a successful career. As you are applying for your dream internship, your resume should create a good impression on the recruiter. Although,

Scaler Academy - An Edtech to Learn Programming & Prepare for Interview

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. It is an undeniable fact that the Indian education system has undergone a radical change over the last few decades. While there have been concerted efforts at making education more accessible, what is still

Voices Blog

International

FinTech Case Studies

Uc berkeley faculty member gregory la blanc stresses that it’s all about the data.

UC Berkeley Haas Global Access Program (BHGAP) and BHGAP Innovation Program faculty member Gregory La Blanc recently hosted a Zoom meeting where he gave viewers a sneak peek into his FinTech class.

Check out the highlights from his talk below and watch the full video!

Citibank was the 300th largest bank in the United States. How do you go from the 300th largest bank in the United States to the largest credit card issuer in the entire world?

With machine learning, with data science, with analytics.

They saw that every single bank in the country is using the same scoring model: If your credit score is above this cutoff, you get a loan; if you're below this cutoff, you don't get a loan.

They said that there must be a more fine-grained model—to find the people who are rejected and see if a few of them might turn out to be good customers. They lent a whole bunch of money to people whom the other model said don't lend money to.

There were a lot of defaults. A lot of people didn't repay their loans. There was a reason why they were generally considered bad credits.

However, after seven or eight months, they were able to determine that a small percentage of them were good credits. So after seven or eight months, they ended the experiment. They cancelled the credit cards of most of the customers.

And what were they left with? A couple of good customers and an amazing proprietary database. They had some training data that they could then feed through an algorithm, and that algorithm would say, here is what makes these good customers similar to one another, and here is what makes bad customers similar to one other. So if you want to find good credit risks, go look for people who look like this.

That's how they were able to scale and grow and become the largest credit card issuer in the world.

This is what's given rise to lots of new startups in the borrowing and lending space. All of them are using different types of machine learning models to identify good credit risks.

In my class , we also hear from people who work at peer-to-peer lending companies. What they really should be called are algorithmic lenders. They use data that other banks don't use. They're going beyond the traditional data sets and finding signals of credit-worthiness that the traditional banks don't look at.

One thing they could look at is your location data.

If a bank is tracking my location, they know something about me. They know that I went to work. Then I spent a couple of hours at LinkedIn headquarters. Then I head over to Google headquarters and then I hit Facebook headquarters for a couple hours in the afternoon.

Banks can use this information to revise my credit score up or down.

If we drill down into location data, we can figure out whom this person is meeting with. What room are they in inside the Facebook headquarters? What building are they in? Who are they sitting next to at that meeting?

If you don't have a unique, proprietary data source, you don't have a sustainable competitive advantage and you'll ultimately be commodified.

There's a company called Tala , and it works in countries like Kenya where people have no documentation: no banking history, no income history, no employment history, no housing history. And yet they can still lend money to these people because they download the Tala app, and the app scours their phone for data.

Kai-Fu Lee , a famous Chinese venture capitalist, visited Haas about two years ago, and he talked about a FinTech startup that he'd invested in. This startup used alternative data to evaluate credit. And he said that one of the most important signals that they had discovered of credit-worthiness was how people managed their battery life. You can track this because you have access to their phone data. People who let their batteries go all the way down to zero are bad credit risks compared to those who are topping off their batteries at 20 or 30 percent.

Even though it's absolutely essential and critical that every company use analytics, machine learning and data science, that alone cannot provide you with a competitive advantage. At the end of the day, that is a commodity. Anybody can learn how to do this, and anybody can hire away anybody else who knows how to do this.

Your competitive advantage has to come from your data—not from what you do with the data or how you use the data. I would argue that if you don't have a unique, proprietary data source, you don't have a sustainable competitive advantage and you'll ultimately be commodified.

Watch the entire video:

Stay up to date with courses and trends in Berkeley Haas Entrepreneurship

Deepen your skills, berkeley haas entrepreneurship, related posts.

Unleashing the Potential of Silicon Valley’s Entrepreneurial Ecosystem

Global Odyssey Journey at Berkeley

Jumping at the Chance to Study at Berkeley

View the discussion thread.

4 Real-world Fintech case studies by UppLabs

• Real Estate
• Social contributions

TABLE OF CONTENTS

• The best UppLabs Fintech practices in detail
• 1. Bank credit collection system
• 2. Rebuilding the legacy banking system
• 3. Improving UX for one of the TOP 4 auditing companies in the US
• 4. Rebuilding multilevel microservices architecture
• Fintech software development by UppLabs

Posted by: Tonya Smyrnova

From projects’ requirements to an effective solution: business goals and tech stack…

In this article, we would like to present to you the real-world Fintech case studies that we implemented, including rebuilding legacy solutions and rebuilding payment systems. Each project required the rebuilding and updating of the old system to the new one, both on the frontend and on the backend sides. Besides, there were other challenges that we are ready to share with you.

Fintech often refers to the combination of finance and technology, which is used to process the business operations and financial services whether it is a software, a service, or a business that implements the technologically progressive ways to make financial processes more efficient by introducing traditional methods.

Over the last 5 years, UppLabs mastered the skills and gained experience in creating reliable, secure, and sophisticated Fintech products . We have strong knowledge of Fintech trends and innovations, constantly learn, visit the best fintech conferences, and have the best team of professional web and mobile developers. Our experience shows that the tech stack you use will determine the possibilities and limitations of your product. 

Below we collected the best Fintech projects developed by UppLabs to show you what practices, technologies, and approaches we used to level up businesses in Fintech.

1. Bank credit collection system 

A credit collection department in one of the famous banks needed a platform for business processes implementation.

Want to find out what bank it was?

Challenges: 

The main challenge was to create a system that would be flexible to the process changes. The team had to review many different options before to choose the right strategy and use the VPN (Virtual Private Network) scheme as a basis for planning.

The solution:  

In order for the solution to be as flexible as possible, in about six months, we designed a system that was based on the VPN model. It could describe this process and complete the necessary tasks and processes.

Technologies:

•  we used Oracle on the backend and ReactJS on the frontend
•  we had a microservice architecture, different parts were related to the integration of banking systems,
•  we used .Net for the backend.

Team : 

There were 2 developers (backend and frontend) responsible for our module, an additional Project Manager, an additional DPA (Database Administrator), and a Head of IT, who was responsible for the whole project.

The task: 

In 2015, we created a project for one of the TOP 10 banks in NY. It was a system that can help to conduct the process of evaluating clients. 

Challenges : 

The main challenge was the rebuild of the old system that was previously written with some bugs. Our team had to identify those bugs and rewrite the legacy product. 

The solution: 

The process of rewriting was very smooth, we didn’t start from scratch, but raised the whole system as it was and added new functionality to fix bugs in their pages. If there were critical bugs, we considered rewriting the module or page using a new approach, and if the bug was not essential, we just fixed the code.

• The team used mainly Java but there was a part of the backend that was written on the . NET that we integrated through the API with the microservice on Java.
• It was a legacy product that was created before using ASP.NET web forms. So, it was converted to a .NET web app and AngularJS. 
• We had a multi-level microservice architecture, where microservices were written using different technologies and approaches. 

We had over 10 Java developers, about 10 .NET developers, a QA team (8 people in Kyiv and 20 people in India), a team of 4 business analysts, a project manager, and 2 team leads. There were 2 more client-side specialists in the United States so that they could communicate with the client on a regular basis and delegate the tasks to other developers.

In 2015-2017 we implemented a project for one famous US auditing company. It demanded rebuilding the system that can conduct the process of evaluating companies and included many different processes. 

The audit documentation was written in the form of a quiz, with the questions based on previous answers. For example, if the company had large financial expenditures, there could appear additional questions and modules for answers. If the company was absolutely transparent and small, then it could go through the fast track module, which significantly reduced the number of additional documents, reviewers, and auditors who had to work with this company and review it.

As we had a certain time limit – a year – to remake the user experience, we couldn’t throw away everything completely. Despite the team we had, we hadn’t enough resources to rewrite everything from scratch in a year. As a result, we decided to separate the modules into the ones that we had to rebuild entirely and the ones that could be re

The most challenging part of this project was the frontend. 

The solution : 

We decided to optimize the backend that remained to be on the .NET, and our team has started rebuilding the system. 

Because of the time restrictions, UppLabs decided to choose:

• the main modules that we can rebuild from scratch, 
• the modules that we will not have time to rebuild, but will be able to finish with the help of redesign or reuse part of the logic. 

Technologies :

• The product’s backend was made on a . NET, the frontend module was made on Knockout and jQuery. It was an old system that already worked, but there was an idea to do an update. 
• The backend included an MS SQL database, and there were a lot of different optimizations to make it all work quickly. 
• The client had an idea to improve User Experience a bit, and UI design in general, so we started rebuilding the system using Knockout and jQuery as well as AngularJS (it was also an old technology). 

We had a team of 15 developers in Ukraine, and 6 QA specialists (one Automation specialist and five manual operators).

In 2017-2018 we worked on a project for a world-known company that provides web analytics services for businesses. We worked in the accounting and billing team, which was directly linked to the financial transactions. 

The solution:  

We used integrations with PayPal, WireTransfer, etc. There was an interesting billing system in general, which was organized on the basis of different approaches. Also, there were subscriptions and additional costs that the company could pay in general. 

Our team used external microservice configurations systems. On the backend, we used Docker-based infrastructure. Everything scaled and deployed automatically to a different number of instances that had load balancers, which raised the number of instances depending on the load. 

The frontend task was to rebuild a system from AngularJS (it was a data-driven project) to ReactJS , and on this basis to raise User Experience and the performance of the website. Our team performed this task successfully.

Technologies : 

• The backend was created using .NET Core and included microservice architecture.
• Each microservice could have its own database, some of them had MySQL, others had more complex solutions.
• The system had a Redshift Database and built OLAP Cubes (databases that we used for integration), other bis data stores for teams. 
• We used Redis on our side, a cache layer with a database for quick access to data.
• Our payment system was connected to Redis and MySQL. To improve the system’s work, we processed operations in Redis, responded to the client, and synchronized Redis with MySQL.  

Team: 

150 developers from different teams that were working on various modules.

As you can see from the examples of our works above, UppLabs proves Fintech expertise by:

• Knowing Fintech regulations by heart
• Using the best security practices for all solutions 
• Providing business advisory in Fintech
• Communicating with financial experts
• Applying the latest technologies for reaching the best results

Our company creates online e-trading platforms that offer real-time solutions with various trading Fintech opportunities, payment systems integrations, money transactions systems, existing banking services maintenance and modernization, and more. 

Our portfolio includes the use of modern architecture that guarantees easy maintenance and easy integration with the best fintech services. 

We give our preferences to such technologies as :

• React Native
• Ruby on Rails

All these technologies are most often used to create web services that require intensive information exchange with users, including the implementation of chats, collaboration systems, social networks, etc. 

From the foregoing, it can be seen that Fintech is going to revolutionize the financial sector in many ways, from increasing the use of payment gateways to providing landings. With much easier account systems and transactions, fintech will also influence the world’s e-commerce industry.

If you’re looking for a Fintech development partner – there is no point in further search!

Check our expertise here . 

UppLabs is a perfect companion to lift you Upp!

Related articles

How could digital wallets impact banking and financial services?

Blockchain and the Metaverse

Let's have a talk

Heads Upp! We know what to do!

Ready to discuss your idea?

Privacy Overview

WAIT! Book Your FREE Technical Session Call!

Got any questions before you enroll or maybe you'd like a full behind-the- scenes demo? Schedule a call with the team below!

• Lockstep Baseline
• Brand and Messaging
• Marketing Plans
• Business Strategies
• Value Propositions
• Predatory Marketing
• Testimonials
• History's Greatest Strategists
• Knowledge Nuggets
• Marketing Strategy
• Business Strategy
• Customer Centricity
• Institute of Change
• (02) 8030 8655

February 20, 2019

10 Successful FinTech Marketing Case Studies

In an industry that puts a prime on innovation, we’ve seen more creative marketing approaches and ideas coming from the FinTech sector in recent years.

With emerging new technologies setting the pace for many industries, some FinTech companies have gone above and beyond in their marketing strategy, proving that with a little marketing creativity, FinTech companies can be more than just technology focused.  

We’ve picked out ten of the most inspiring marketing examples and case studies from FinTech companies to help you plan your own strategy.  

FinTech Inbound Marketing

In the area of Fintech content marketing , SoFi leads the way in creating a website that acts as a resource centre that offers useful how-to guides and custom calculators. From student loan refinancing to first-time home buying, SoFi’s website offers a lot of useful tools and tips to help people make better financial decisions.

Invisible Marketing

WePay showed everyone the right way to do invisible marketing using emotional triggers when it used a 300-kg ice block of frozen money to get a one-up on its biggest competitor, PayPal.

Wanting to expose PayPal’s tendency to freeze customer accounts, the frozen money ice block, with a link to unfreezeyourmoney.com on it, stunned the crowd.  

With the stunt going viral, it drew 3x more landing page conversions for WePay, increased their sign-ups by up to 225%, and increased their weekly traffic to 300%.

iZettle is a payment technology firm that promoted their identity to a new audience by running a six-day pop-up store campaign in central London.

Businesses were allowed to conduct their trade from the pop-up store with their own branding as long as all transactions were done using iZettle’s mPOS technology.

It promoted iZettle as a new choice for PoS organisations and helped the company to become associated with small and local businesses.

Visa Europe Collab

Visa Europe Collab created a campaign during London Fashion Week S/S’16 that would highlight what’s next in payment technology. Their Cashless on the Catwalk campaign promoted high fashion with contactless payment technology.

They partnered with celebrities and gave them NFC-enabled rings that allowed them to buy items directly from the catwalk. With the campaign’s success, it won the FinTech Marketing Campaign of the Year at the 2016 FinTech Innovation Awards.

Using Video & TV Ads  

Transferwise.

A finalist in the FinTech Innovation Award in 2015, TransferWise came up with a creative way to announce itself in the industry. They released The Party’s Over video ad, which showcases a big party at the Bank of Money. Like most parties, the party ended up destroying the space. In the video, TransferWise finished the party, implying that they are leading the way for financial services and disrupting the old banking industry.  

MoneySupermarket.com.

As another frontrunner in FinTech innovation, Moneysupermarket.com is a price comparison website used in financial services that used a funny TV ad to promote their website and their brand.

In the viral Dave’s #Epicstrut ad, we see Dave strutting and dancing through the streets of LA wearing short shorts and heels while the narrator shares how he was able to save money using moneysupermarket.com’s service.

The funny video stuck with audiences everywhere and made it easier for people to remember moneysupermarket.com as a brand, reaching 18,000 shares and more than 1,000,000 views on YouTube.

The first online discretionary investment and wealth management firm from the UK, Nutmeg ran a high-profile ad campaign that targeted London commuters during ISA season. They released these ads across the London underground network, rails, and billboards.

From posting ads in carriages to strategic locations such as station entrances and exits, they made the most of the lack of mobile signal underground to give commuters the time to read through these ads and reflect about their finances. They won the FinTech Marketing Campaign of the Year in the 2015 FinTech Innovation Awards.

Web Traffic & Lead Generation

Fattmerchant.

FattMerchant wanted to turn their website as their primary source of lead generation while also breaking into the merchant services industry as a reliable credit card processing company.

To do this, they integrated a stronger brand personality into their website while focusing on educating their customers and updated their social media profiles. With the launch of a new and a more responsive website that was optimised for conversion, they improved their lead generation by up to 5x in 7 months and converted up to 4x the number of contacts.  

As one of the largest financial modelling and training firms, the company recognised the need to find a better lead generation and inbound marketing tool to increase demand for their products and services.  

After partnering with HubSpot and leveraging its marketing platform, F1F9 increased their web traffic by up to 7x and generated as much as 600 new leads every month.  

Kantox is another FinTech company that offers FX management solutions for currency exchange management. It has a marketplace that makes use of a matching engine that gives customers the option to exchange currencies directly with them at mid-market rates. They used costly outbound marketing strategies that had poor lead quality return rates.

In its quest to get more leads for the business, Kantox partnered with HubSpot who helped them create an inbound marketing strategy that now generates 50% of all of its leads. Using HubSpot’s marketing platform, they noted a 10% increase in leads and a 190% increase in website traffic.

Written by Step Change

We exist to inspire step changes in businesses and in people.

Tagged: Marketing Strategy , Fintech

Comments (2)

• Marketing Strategy (197)
• Digital (107)
• Business Strategy (100)
• B2B Sales (68)
• Culture & Leadership (61)
• Branding (59)
• Step Change (59)
• Stump the Strategist (36)
• Ashton Bishop (35)
• Customer Centricity (25)
• Predatory Marketing (25)
• Content Marketing (23)
• Creativity (22)
• Business Growth (21)
• Disruption (18)
• History's Greatest Strategists (18)
• Knowledge Nuggets (16)
• Brand Archetypes (15)
• Finance (15)
• Decision Making (14)
• Power of Model Thinking (14)
• 2 Minutes On (12)
• Innovation (11)
• Challenger Brands (10)
• Powerful Presence (10)
• Technology (10)
• Marketing Automation (8)
• Artificial Intelligence (7)
• Better Insights (7)
• Better Questions (7)
• Norman Chorn (7)
• Popular Posts (7)
• Brand Positioning (6)
• Healthcare (6)
• Business Opportunities (5)
• Customer Journey (5)
• Fintech (5)
• Leadership (5)
• Productivity (5)
• Aged Care (4)
• Alignment (4)
• Blue Print (4)
• Brand Building (4)
• Differentiation (4)
• Email Sales (4)
• High Performing Teams (4)
• Invisible Marketing (4)
• Marketing Technology (4)
• Referral Relationships (4)
• Success Principles (4)
• Transformation (4)
• underdog marketing (4)
• Augmented Reality (3)
• Distinctive Brand (3)
• Ecommerce (3)
• Increase Sales (3)
• Personal Growth (3)
• Re-engage Database (3)
• Social Media (3)
• Software (3)
• Strategy Frameworks (3)
• Animation (2)
• Bendy Phones (2)
• Better World (2)
• Brand Saliency (2)
• Business Model (2)
• Construction (2)
• Conversion (2)
• Culture (2)
• Digital Economy (2)
• Digital Revolution (2)
• Domenico de Rosa (2)
• Email Marketing (2)
• Internet (2)
• Marketing Funnel (2)
• Measures That Matter (2)
• Not-for-Profits (2)
• Pharmaceutical (2)
• Power of Decision (2)
• Sales Strategy (2)
• Scenario Planning (2)
• Standing Out (2)
• Steve Jobs (2)
• Strategic Planning (2)
• Team Efficiency (2)
• The Big 6 Challenges (2)
• Thinking Routines (2)
• Virtual Reality (2)
• manifesto (2)
• 5G Wireless (1)
• AGL Smarter Working (1)
• Abercrombie & Fitch (1)
• Acquisition (1)
• COVID-19 (1)
• Cause-Related Marketing (1)
• Change Management (1)
• Comunet (1)
• Confirmation Bias (1)
• Dame Anita Roddick (1)
• Daniel Kahneman (1)
• Database (1)
• Dean Mannix (1)
• Digital Marketing (1)
• Disciplines (1)
• Distribution (1)
• Drone Racing (1)
• Dual Transformation (1)
• Elon Musk (1)
• Exclusive Interview (1)
• Execution (1)
• Exponential Organizations (1)
• Financial Services (1)
• Fisher Price (1)
• Fundamental Attribution Error (1)
• Gamblers Fallacy (1)
• Gorilla Glass (1)
• Growth Hacking (1)
• Hackers (1)
• Henry Ford (1)
• Hospitality (1)
• Ice Bucket Challenge (1)
• Ideation Process (1)
• Institute of Change (1)
• Ladder of Inference (1)
• Launching an App (1)
• Lean Principles (1)
• Lee Se-Dol (1)
• Mahatma Gandhi (1)
• Mark W. Johnson (1)
• Marshall Van Alstyne (1)
• Mcdonald's (1)
• Microsoft (1)
• Mission Statement (1)
• Newsreel (1)
• Online Streaming (1)
• Our Work (1)
• Pepper the Robot (1)
• Platform Revolution (1)
• Professional Services (1)
• Property (1)
• Range Architecture (1)
• Real Estate (1)
• Reality Distortion Field (1)
• Reporting (1)
• SalesITV (1)
• Salim Ismail (1)
• Sean Covey (1)
• Selling Persuasively (1)
• Smart Decision System (1)
• Smart Risk (1)
• Start-Up (1)
• Sustaining Change (1)
• The Body Shop (1)
• The Invoice Market (1)
• Thinking Models (1)
• Tracking (1)
• Unicorns (1)
• VUCA World (1)
• Value Proposition (1)
• Walter Isaacson (1)
• Warren Buffet (1)
• Water Jet Cutting (1)
• Wintergartan Marble Machine (1)
• Women in the Workplace (1)
• YouTube (1)
• Zoom Pavillion (1)
• alcohol (1)
• crowd sourcing (1)
• eLearning (1)
• eSports (1)
• exponential marketing (1)
• invisible communications (1)
• linkedin (1)
• thinking (1)

Related posts

Recent posts

To get to know you better, please fill in the field below..

Step Change, Unit A1/35 – 39 Bourke Rd,NSW 2015, Alexandria , Sydney, NSW, 2015 (02) 8030 8655

[email protected]

+1 617 454 4121

India: Case Study on the Power of Fintech Innovation

The Indian payments landscape completely transformed over the last decade, catalyzed by a shift from cash, cards, and other traditional payment methods to real-time A2A payments, powered by the UPI network and mobile apps. This globally-relevant case study on fintech innovation and disruption was fueled by a crescendo of forces including government policies, banking infrastructure upgrades, and the influence of mobile phone technologies. Figure 1 shows the rapid ascent of UPI-powered mobile payments while usage of cash, cards, and prepaid wallets diminished in share of wallet. Within this article, we tell the story of the rapid transformation of payments in India, and what the future might hold.

Mobile Payments Disruption

Prior to UPI, Indian fintechs were already driving the market towards mobile payments, a push that started with the introduction of digital wallets powered by prepaid accounts such as the Paytm Wallet in 2014. These mobile wallets were propelled by India’s demonetization policy, a large scale macro-economic exercise implemented by the government to combat corruption and push for digital payments. In November 2016, the government of India discontinued the acceptance of all existing currency notes overnight (larger than Rs. 500), with the motive of replacing them by printing new notes. The policy led to a shortage of cash in the country forcing consumers to find digital alternatives. This created the perfect opportunity for fintechs such as Paytm to fill this gap by offering digital propositions designed for both consumer and merchant. Digital wallet adoption rate skyrocketed as consumers became more comfortable with mobile payments.

UPI Payments Explained

The introduction of UPI turbo-charged the pace of innovation and disruption in India. Unified Payments Interface or UPI, launched by the National Payments Corporation of India (established by the Reserve Bank of India) in 2016, is an account-to-account payment system that enables consumers and merchants to send and receive payments with real-time settlement. Currently UPI accounts for about two in every three retail non-cash transactions in India.

UPI is not an end-user product (not a mobile app), but a payment network, used by fintechs and banks who develop and distribute the mobile apps that power payments through the UPI network. Users can easily enable this payment method by creating a unique UPI identification key that is linked with the user’s bank account and mobile number. Many mobile payment apps such as PhonePe, GooglePay, and Paytm (among others) support UPI sign-up, initiation or receipt of payments to and from users’ bank accounts. For P2P transactions, users can simply use the mobile number linked with a UPI ID to transfer money instantly making the user experience extremely quick and frictionless.

Figure 3 illustrates the primary use cases for C2B (merchant) payments, which are enabled by QR codes. There are two types of QR codes used with UPI: Dynamic QR and Static QR. Larger merchants that have integrated payments at their point-of-sale, will utilize the dynamic QR code, which is generated upon billing and presents the customer with the exact amount to be paid. As software embedded payments are still relatively nascent in India, and limited to larger enterprises, static QR codes provide a simpler way for small merchants to receive payments without having an integrated POS system. The static QR only contains the UPI ID of the merchant and customer needs to manually input the amount to be paid. The key success factor for achieving a frictionless experience is that UPI transactions are real-time, allowing both consumers and merchants to receive instant notification of payment completion.

Government Incentive and The Real Cost of UPI

UPI’s rapid growth as a preferred means of C2B payments is fueled in part by a government policy for zero-cost UPI payments, which today, are free for both consumers and merchants (a policy introduced on 1 Jan 2020). The government does subsidize market participants, but this subsidy is small in comparison to the actual costs of the ecosystem (subsidies of c.$295 million in 2022 to merchant acceptance participants falls vastly short of the estimated total costs that are in excess of $1 billion). In the recently announced Budget for FY 2023-2024, the government reduced the subsidy amount to less than $200 million. According to ecosystem cost estimates from the Reserve Bank of India (RBI), on average, a C2B UPI transaction generates a total cost of approximately 0.25% considering the roles of the different stakeholders in the value chain. We break-down RBI’s cost estimates in Figure 4.

Due to India’s current zero-merchant-discount-rate policy, UPI C2B payments are unusually unprofitable for fintechs and banks. PSPs and app providers such as PhonePe, GooglePay, and Paytm (shares shown in Figure 5) are forced to find other sources of revenue such as bill payments and most notably, various forms of embedded credit to consumers and merchants. The lack of payments profitability is one reason why fintechs such as Paytm still struggle to achieve profitability. Paytm reported a -30.5% EBITDA margin for FY 2022, despite its scale and relatively long tenure in the market. The company did however, report a positive EBIDTA margin of c. 1.5% for the first time in Q3 FY 2023, which is attributed largely to expense reductions.

Some Indian market participants expect the ‘zero-cost’ policy to fade, resulting in more natural economic incentives for parties involved in C2B UPI transactions. Merchants continue to lobby in favor of the current policy, which seems to be working as the Indian Ministry of Finance announced last year that UPI is a digital good and the government has no intension of changing the current zero-cost policy. For now, there remains a tension between the massive fintech potential of UPI and the lack of payments profitability for UPI service providers.

Growth of Mobile Payments and Future Implications

India is now the global market leader for real-time A2A payments, but certainly not the only country which has seen a massive uptake in digital payments, as shown in Figure 6. This trend is replicated in other markets such as Brazil and Thailand, where A2A banking infrastructure combined with mobile means of payment are powering disruption. We do not see the same pace of A2A + mobile disruption in more mature western markets. This is a classic example of the ‘leapfrog effect’ in payments where less-developed markets evidence far more rapid innovation and disruption versus mature markets, where behaviors linked to cards are more deeply entrenched (formed over decades).

Countries around the world are drawn to the India (UPI) case study as they aspire for efficient, digital payments and alongside financial inclusion. The National Payments Corporation of India (NPCI) is working to internationalize UPI, recently signing a memorandum of understanding with 13 countries including Singapore, Thailand, France, Netherlands and the U.K. to enable acceptance of UPI outside the countries. NPCI is working with payment providers such as Worldline in Europe to implement Indian payment methods including RuPay and UPI in countries including Netherlands, Belgium and Switzerland. Through this partnership, Worldline’s merchants in Europe will be able to accept UPI payments at the point-of-sale using QR codes.

The Reserve Bank of India also recently announced an agreement with the Monetary Authority of Singapore allowing interoperability between UPI and PayNow (Popular alternative payment method in Singapore). This allows users of both instant payment systems to use the other seamlessly without additional sign-ups and send money cross-border. This alliance is a unique global case study on interoperability of A2A schemes, and one which we expect to be replicated in other markets.

India is a perfect example of the power of fintech to transform an economy and the day-to-day lives of people. In less than a decade, India went from a wide-spread lack of financial inclusion to a country that is now leading the world in A2A-powered mobile payments. This success is the result of government policy working hand-in-hand with banking and fintech innovation. Going forward, however, the fintech community must tackle challenges posed by zero-cost payments, as while Indian consumers and merchants benefit from payments innovation, shareholders are still searching for return on investment.

Please do not hesitate to contact Joel Van Arsdale at [email protected] with comments or questions.

Sameer Verma

Joel Van Arsdale

Topics & themes, related articles, executive interview series: key payment challenges and opportunities in mea, with samer soliman, ceo afs, the paypers: global overview of key industry themes in 2024 -introduction to the evolving world of payments, merchant vas now a lucrative reality for psps, reactions to visa and mastercard credit card fee settlement with u.s. merchants, subscribe to our expert analysis and insights on payments and fintech.

© 2023 Flagship Advisory Partners LLC. These materials may be freely copied and distributed so long as the user attributes the source as Flagship Advisory Partners and references our website: www.flagshipadvisorypartners.com

FinTech Solutions

• FinTech Solutions Overview
• Temenos Journey Manager
• Temenos LMS
• Loan Origination / Capitalstream
• Test Data Management (TDM)

Most Recent Insights

Open Banking APIs: Seamlessly transition to the future of financial services with MuleSoft

Open banking is expected to introduce new competition in the financial services industry and open the door to significant growth

MuleSoft Training | 5 Key Considerations for Your Bank or Credit Union

When it comes to training for MuleSoft or other iPaaS (Integration Platform as a Service) alternatives, there is no one

Salesforce Acquisition of Informatica | What would it mean for the future of MuleSoft?

4/23/24 Update: Salesforce has reportedly pulled out of the Informatica acquisition talks due to Informatica’s lack of interest in a

Streamline Your Data: Mastering No-Code Integrations with MuleSoft Composer

Is your financial institution navigating data integration challenges? MuleSoft Composer is your ally for seamlessly connecting various applications right within

Solution Brief: Temenos Journey Manager

Overview of Accutive FinTech’s services related to Temenos Journey Manager, a best-in-class digital customer onboarding platform that fully customize to your needs.

Solution Brief: MuleSoft for Financial Services

Overview of Accutive FinTech’s services related to MuleSoft, specialized to banks, credit unions, and other financial institutions.

• FinTech Professional Services
• Quality First Approach
• FinTech Platform Assessments

Explore Our Recent Case Studies

Delivering a Zero Defect Banking Integration Project with MuleSoft​

Learn how Accutive FinTech integrated a new digital payments platform with the core banking system and other applications using MuleSoft with zero defects

Case Study: Loan Origination System Integration

Explore how Accutive FinTech successfully completed a major loan origination system integration project with only 1 defect out of 200 test cases (0.5% defect rate).

Temenos Journey Manager Case Study

Read how Accutive's quality obsessed approach is producing remarkably low defects in our latest Temenos Journey Manager project for a large regional bank.

FinTech Insight Category

Case studies, whitepapers, solution briefs.

• About Accutive
• Accutive Corporate

Delivering a major 800-hour Loan Origination System Integration Project with only 1 Defect

The Challenge

Accutive's quality first approach, high ratio of qa resources to developers:.

• Enables enhanced and early testing
• Rapid issue identification and remediation
• Improved software quality
• Significant ROI for your organization in medium to long term

Rigorous requirements analysis from Discovery onward:

• Accurate estimates with minimized risk of misalignment
• Shared understanding of requirements with client (we’re all on the same page)
• Minimal requirement changes, with greater odds of on time delivery

Zero defect mentality:

• Continuous improvement mindset
• Approaching each project with the goal of no defects

Project Requirements

• Enabling appropriate lending limit authority by recording incremental exposure increases at the connection level and avoiding resetting the limit with each approval
• Seamless integrations to update each borrower’s account to reflect each incremental increase in exposure
• Transparency into lending guidelines that were applied for each loan approval
• Enforcing lending limits based on new policies
• Facilitating insights into treasury exposure on credit applications
• Identification and flagging elements critical for risk transference
• Updating risk appetite statement (RAS) documents to reflect exposures

The Solution

The project was delivered by Accutive FinTech on time with only one single defect identified by the client’s Quality Assurance team throughout the entire project. One defect out of 195 test cases represents a defect rate of 0.5%. Although a 0.5% defect is remarkably low, our team analyzed how the defect was produced and captured our findings in our lessons learned process to utilize for future projects. We constantly strive toward our goal of zero defects in our projects and implement processes to ensure that errors are not repeated.

Business Value Creation

We’re here to help, talk to our experts, contact information, stay connected, accurate + innovative.

• Fintech Insights
• Privacy policy
• Terms + conditions

Services + Solutions

• Fintech Solutions

Stay In Touch

www.accutive.com

| Copyright © 2024 Accutive . All Rights Reserved.

• Startup of the week

Cred Case Study: The Successful Story of a Fintech Startup

| 4 minutes read

An Indian Fintech Startup, Cred, entered the unicorn club on April 6 th, 2021. CRED had shown a strong footprint and became one of the most successful startups in recent times. Bengaluru, India Based Startup, made its name big, but it has its true story starting from Zero to billions. Although the road was not easy, they made the impossible possible and showed the strength of the Indian startup .

The company was established in 2018 and had a valuation of approximately $2.2 billion. Many other startups like Flipkart and OYO took more than ten years to reach a similar valuation level. 

What is their Business model?

The startup is based on the “Hole and hook model”. It is a common problem that many credit card users don’t pay their credit card bill on time. So the business model of Cred encourages holders to complete payments on time by providing some exclusive rewards including 100% cashback.

The company found the ‘hole’ (flaw) in the credit card payment system and provided a ‘hook’ in rewards. They offer attractive rewards to their customers, which makes their product a brag-worthy proposition.

About the founder

Kunal Shah was also the co-founder of ‘freecharge’. Coming from a Gujarati family and a non-tech background, he is currently the founder of two big tech companies. He was motivated to start CRED after research and understanding the loophole in the overall credit card payment system. He is also the current CEO of the company Cred.

Also Read: Startup Case Study: How Byju’s is Disruption the Indian Edu-tech Sector?

What is their marketing strategy.

The marketing campaign of CRED is universal. They have implemented an aggressive marketing strategy to improve the value of their product. Surabhi Capoor is the brand and product marketing head at CRED.

The company’s marketing department came up with unique advertising ideas that made the brand larger than life. For example, the latest ad featured Kapil Dev (Former Cricketer) acting like a Ranveer Singh that pulled viewers because no one had seen him in this avatar before. Apart from this, during IPL (Indian Premier League), Cred starts to increase its awareness before the beginning of the IPL like the way Vodafone used to do by introducing Zoozoo (character).

Further, the company was marketed through various other celebrities on social media platforms . Meme marketing also worked for the company, and thus the awareness of the brand is on the rise.

What services do they provide?

The company started with just credit card payment services, but now it is expanding its reach in different sectors. The CRED app has more than 60 lakh users, and the number is increasing. 

Listing the services provided in the app.

• It allows you to manage all your credit card payments in one place.
• The app notifies your regular payment details and due dates.
• It offers rewards and cashback for new users.
• The company provides CRED points on the completion of payment, and these points can be used to avail various vouchers and cashback.
• The payment method is hassle-free.
• They have started providing services for rent, loans, and insurance.

How Credible are they?

The company assures total privacy to the customers (claimed by the company). They deal with the valuable financial data of the customers, and they offer complete privacy on it. With such attractive rewards and enhanced security, it is trusted by its users. In just 2 years, they have successfully reached a million consumer base, and their number is ever increasing. 

What is their Mission?

The mission of the company is understood by everyone. They want to improve and enhance the credit card payment system. Despite not making any profit in 2019 and 2020, they have eventually gained the trust of their users. They used the “reward and punishment tendency” effectively to attract and establish the customers base.

CRED & their Vision

CRED’s business model is futuristic. They want to develop themselves in diversified sectors like insurance, rent, shopping, loans, and realty payments. The company also focuses on a futuristic revenue model. 

It aims to generate revenue through merchandising, commission and consulting. They can also use this vast customer base for sales pitching and generate good fortune from it.  

How are they Funded?

CRED is one of those legendary startups that got funding right before its execution. This was made possible by the brilliant execution of the founder Kunal Shah. The company has made a loss of 63.90 crores and 378.89 crores in 2019 and 2020, respectively. Despite these losses, the company is trusted by its investors.

The company has around 28 investors and 7 lead investors. The lead investors are listed below:

•         Dragoneer Investment Group.
•         Tiger Global Management.
•         Sofina.
•         DST Global.
•         Coatue.
•         Falcon Edge Capital.
•         Insight Partners.

The company has raised funding of around $471.3 million from investors. The company’s other investors are Ribbit Capital, Gemini investments, Sequoia Capital India, and Rainmatter Capital.

Who are the Brand Partners?

The company offers different rewards and vouchers for customers. It has successfully bagged many reputed brands as its partner. Some of the esteemed brand partners are:

The story behind their Struggle and Success

Kunal Shah faced a serious dilemma before starting the company. He was offered to become an investing partner in Sequoia Capital of India. But the entrepreneur chose to start a company rather than become an investor. 

The company has also registered itself as an IPL sponsor and has started building some revenue. Despite making losses in the first two years, it has continued to provide valuable services to its users. The company has a futuristic revenue model, and thus it is trusted by its investors.

Born in the family of entrepreneurs and have inherited the same. Started building applications in order to pay for my tuition. Later founded a tech company, marketing agency , and media outlets.

About the author

Related posts.

Feb 20, 2024 | Analysis ,  Investments

How to invest in the stock market: a guide for beginners.

Nov 13, 2023 | Marketing ,  Sales

The advantages of personalised tote bags featuring your brand logo.

Nov 13, 2023 | Marketing

Local seo for real estate: dominating your local market.

Aug 14, 2023 | Investments

Top reasons for investing in gold, get updates to your inbox.

Thanks for subscribing! Please check your email for further instructions.

Recent Tweets

Content Marketing

The problems with fintech case studies [and how to fix them in 2022].

Fintech is buzzing. There is a glut of VC funding flowing through the industry. A new contender arrives every day to promise heaven and earth (or cryptocurrency). But as buzzwords and jargon fly around the sector, content marketing leaders may be underusing one of the most critical marketing kit tools—the case study.

The case for fintech case studies

Case studies are criminally overlooked in fintech, an industry where products are so complex that customers and potential buyers struggle to understand what exactly they do.

While many fintech companies ignore case studies altogether, others produce reports that add little value for sales representatives, potential buyers, or customers. As the owner of Genuine , I write exclusively for B2B fintech companies. And I’m often surprised to see some industry case studies peppered with more product features than customer stories. With that in mind, here are three common case study stumbling blocks I’ve noticed:

1. The customer interview

As a marketer, have you ever read a case study knowing the customer had a better experience than the finished piece articulates? It’s not a nice feeling. However, the problem often lies in the interview—the launchpad from which all great case studies arise.

I get it. It’s tempting to treat case studies like conversations or business development exercises. I’ve heard case study interviews where salespeople interrupt the customer to put their own spin on events and where interviewers ask questions that are so safe they result in uninteresting responses.

Try to avoid this. Useful interviews for case studies are more like a journalistic Q&A. That means getting comfortable with:

• Interjecting when people go off-topic
• Asking probing follow-ups and fact-checking where detail is scant
• Using open questions with why, where, what, when, how come, how much

Busy executives will thank you for this. They, too, want a tightly managed call, so they can return to doing their core work as soon as possible.

2. The customer quotes

Senior decision-makers have been around the block. Spin and superlatives will not hoodwink them into choosing one solution over another. Instead, they want to hear what people exactly like them have to say about the product.

Too often, I’ve seen fintechs drop powerful customer quotes because they paint an imperfect picture of a customer’s experience with their product. That’s a missed opportunity. Criticism paired with praise is more believable than quotes that suggest a flawless experience. Read the reviews of finance and accounting SaaS products on G2 to see what I mean.

So include the criticism. No product is perfect. And technology products, in particular, are known for common problems, like overpromises by sales, complicated implementations, or cumbersome software and app integrations.

Generalities and filler quotes won’t cut it either. But detailed quotes will detail how a fintech product benefited the customer through the metrics they care about most.

3. The story arc (or lack thereof)

Finally, some fintech scale-ups forget that case studies shine brightest when they provide a relatable narrative about real people solving real problems.

A few years ago, a fintech asked me to help them craft their first-ever case study about their favorite customer: a big bank. And here’s the thing. They didn’t want to name the bank. In fact, they didn’t even want to interview the customer or include quotes.

That’s an extreme example. But it’s also a reminder that focusing only on the problem-solution-outcome format is, well, a little boring. But stories with a protagonist, a challenge, and a catharsis? That’s where the gold is. So don’t forget to tell a story with your next case study and keep these points in mind:

• Say how the customer tried and failed to solve the problem before using your product.
• Use story structures that play up the obstacles, the conflict, and the resolution.
• Add context with years, locations, and the operating environment.

Strong stories not only help fintech salespeople show prospects how their industry peers achieved results, but they also make existing customers look good. They give an added boost to customer retention and satisfaction.

So don’t sleep on using case studies to celebrate customers for a heroic effort and choosing your product to make a change.

Get better at your job right now.

Read our monthly newsletter to master content marketing. It’s made for marketers, creators, and everyone in between.

Trending stories

A Guide to Crafting the Perfect Content Format Mix for Audience Engagement

In Tough Times, Self-Aware Marketing Helps You Stand Out & Save Money

5 Financial Content Marketing Insights From The Best Email Newsletters

Visual Storytelling Examples to Captivate Your Audience

How to Put Creativity at the Center of Your Content Marketing

Synergy and disruption: Ten trends shaping fintech

Fintech, the portmanteau of finance and technology , represents the collision of two worlds—and the evolution of the use of technology in financial services. Financial services and technology are locked in a firm embrace, and with this union comes both disruption and synergies.

Financial institutions are engaging with fintech start-ups either as investors or through strategic partnerships. Almost 80 percent of financial institutions have entered into fintech partnerships, according to McKinsey Panorama. Meanwhile, global venture capital (VC) fintech investment in 2018 has already reached $30.8 billion, up from $1.8 billion in 2011 (Exhibit 1).

Average deal size is growing as well, particularly in Asia , where it is almost twice as large as the global average, due largely to a number of mega deals. 1 McKinsey’s analysis based on CB Insights data. The investing public is also enamored of fintechs: Zhong An made waves with its $11 billion IPO valuation last year, while Ant Financial is reported to be raising a pre-IPO round valuing the company at $150 billion.

However, the aggregate investment figures belie a more nuanced set of developments. “Fintech” covers a range of different models. We see four distinct variants, each operating in different niches, with different modus operandi (Exhibit 2):

• Fintechs as new entrants, start-ups, and attackers looking to enter financial services using new approaches and technologies . These firms seek to build economic models similar to those of banks, often targeting a niche or particular product. The primary challenge for fintechs in this group is the cost of customer acquisition.
• Fintechs as incumbent financial institutions that are investing significantly in technology to improve performance, respond to competitive threats, and capture investment and partnership opportunities.
• Fintechs as ecosystems orchestrated by large technology companies which offer financial services both to enhance existing platforms (e.g., AliPay supporting Alibaba’s e-commerce offering) and to monetize current user data or relationships. Because of the very high level of engagement these technology platforms have with their users, they often have a tremendous customer acquisition cost advantage relative to other firms.
• Fintechs as infrastructure providers selling services to financial institutions to help them digitize their technology stacks and improve risk management and customer experience.

We believe the future will develop in different ways for these varying types of fintechs, and that they will face very different hurdles. For instance, while infrastructure providers will often succeed or fail based on product or technical capabilities, consumer-oriented start-ups most commonly grapple with customer acquisition costs.

For incumbent financial institutions, the biggest hurdles relate to organization and skills as much as investing in technology at scale. Shifting traditional mindsets and operating models to deliver digital journeys at a start-up pace is no easy feat for a financial behemoth.

For established technology players entering the fintech ecosystem, regulatory challenges may prove a hurdle. The “move fast and break things” approach that disrupted the advertising industry is unlikely to be tolerated in financial services. And concerns about monopolistic behavior could well prevent Western tech giants from developing the sort of integrated financial services offerings we see from Ant Financial or Tencent in China.

To cut through the headlines and buzzwords that saturate the discussion of fintechs, we now take a closer look at current trends, and the implications for both incumbents and attackers.

Ten global fintech trends

1. high level of regional variation in fintech disruption.

Winners in fintech are primarily emerging at a regional rather than global level, similar to traditional retail banking. Regulatory complexity within countries and across regions is contributing to regional “winner take most” outcomes for disrupters. Firms need to invest more in regional compliance rather than launching a global effort on day one.

For example, in money transfer, regulatory approval in a single EU country can be passported across the other EU countries. This encouraged many cross-border payments start-ups, such as WorldRemit and TransferWise in the UK, to expand into neighboring European countries before moving across the Atlantic, which requires additional regulatory investment. Individual US states require licenses for money transfer, which makes US expansion more cumbersome for European operators. This also explains why money-transfer operators in the US, such as Xoom and Remitly, were slower to come to Europe and are not yet operating in Asia as sending markets.

In China, where regulation has been more accommodating, ecosystems were formed by technology giants such as Ant Financial, which have directly entered and are reshaping many financial sectors including digital payments, loans, and wealth and asset management. In the US and Europe, which have stringent regulatory requirements and well-established banking offerings, efforts have been more fragmented and large technology players have been limited to payments offerings and some small-scale lending offerings.

As fintech markets mature, attackers that have established a regional presence are now eyeing international expansion. To successfully enter new markets, they must adapt to new sets of market dynamics and government regulations and select new markets based on a clear understanding of regional variations.

2. AI is a meaningful evolution, not a great leap forward for fintechs

The buzz surrounding artificial intelligence (AI) applications in fintech is intense, but to date few standalone use cases have been scaled and monetized. Rather, we see more advanced modeling techniques, such as machine learning, supplementing traditional analytics in fintech. While AI shows great promise , it is likely to be more of an evolution than a great leap forward into new data sources and methods.

For example, many credit underwriting attackers claim to use AI to analyze vast alternative data sources—ranging from mobile phone numbers to social media activity—but they have not yet displaced traditional credit underwriting methods. In many cases, traditional markers such as repayment history, are still better predictors of creditworthiness than social media behavior, particularly in markets where credit histories (and dedicated agencies to monitor them) are well established. As a result, while consumer lending platforms are increasingly incorporating iterative machine-learning approaches to steadily improve existing performance, they do not need to take a quantum leap in AI to do so.

At least in the short term, winners may not be characterized by completely new modeling approaches or the most complex algorithms, but by the ability to combine advanced analytics and distinctive data sources with their existing business fundamentals.

3. Good execution and solid business models can trump exotic technology

The most successful fintechs have evolved into execution machines that rapidly deliver innovative products, with dynamic digital marketing campaigns to match. Notably, winning start-ups often succeed without using completely new technology. Data-driven iteration, coupled with early and continuous user testing, has led to robust product-to-market fit for these firms.

While cutting-edge technology is exciting, it can also be complex; demand is also untested, which can result in long lead times with little opportunity to validate the business model. As an example, consider cross-border money transfer, a market that has traditionally been dominated by large incumbents such as Western Union. Despite much hype about fintech—particularly blockchain-based solutions—entering the space, no start-up has gained anywhere near the scale of TransferWise, a digital business built on top of traditional payments rails, rather than a reinvention using the latest tech. TransferWise used great user experience and distinctive marketing campaigns to grow rapidly, enabling it to successfully disrupt the space, and to report £117 million in revenues in March 2018.

Would you like to learn more about our Financial Services Practice ?

4. scrutiny of business fundamentals is increasing as funding grows more selective.

Years into the fintech boom, after many highs and lows, investors are becoming more selective. While overall funding remains at historically high levels, technology investors globally are increasingly investing in proven, later-stage companies that have shown promise in attaining meaningful scale and profits. Data compiled by PitchBook show that despite a clear increase in total VC funding, investments in early-stage fintechs decreased by more than half from a peak of more than 13,000 deals in 2014, to around 6,000 in 2017. The bar for funding is quickly rising, and companies with no clear path to monetization are going to have a harder time meeting it.

Indeed, several well-known and well-capitalized fintechs have yet to develop a sustainable business model and may need to find a path to more meaningful revenues quickly to continue to attract capital. This is especially evident for challenger digital banks. Some have raised significant sums but still struggle to monetize their products effectively; others have not yet delivered a current account product due to complications around licenses and regulations.

Customer adoption of truly innovative business models takes time, and smaller-scale attackers may require heavy infrastructure investments over a long period before revenues start coming in. Blockchain start-ups, for example, are attracting a significant amount of venture capital with radically new infrastructures for payments and other sectors. However, incumbents remain cautious, with blockchain remaining in prototype mode—and the leap to revenue-generation has yet to take place.

5. Great user experience is no longer enough

Back when banks had cumbersome websites that didn’t render on mobile, it was easy for fintechs to win over customers by building a half-decent app with a great user experience (UX). Today, most financial institutions have transformed their retail user experience, offering full mobile functionality with best-in-class design principles. Great UX is now the norm. Customers, as a result, require more reasons to switch to new fintech offerings.

Robinhood, a US-based stock-trading fintech, simplified stock trading by offering zero commissions through its easy-to-use mobile app with solid UX. But first, it built its user base with free product offerings. It initially made money by investing users’ cash balances. In late 2016, the company launched a successful premium offering called “Robinhood Gold,” which added charges for margin and out-of-hours trading.

Simple interfaces, ease of use, and free stuff no longer equate to a viable business model. Attackers now need to find more robust ways to differentiate themselves from incumbents.

6. Incumbents can, and do, strike back

In general, incumbents were initially slow to respond directly to fintech attackers, perhaps for fear of cannibalizing strong legacy franchises. Many started by trialing digital offerings in non-core businesses or geographical areas, where they could take more risks. Retail banks have led the charge in upgrading digital experiences to match fintech in their core banking products. For example, Wells Fargo recently added a predictive banking feature that analyzes account information and customer actions to provide tailored financial guidance and insights, with over 50 types of prompts.

Goldman Sachs’ Marcus consumer lending franchise is perhaps the most high-profile push into digital by an investment bank. Marcus emerged as an unlikely entrant into consumer finance in 2016, but recently surpassed $3 billion in US consumer lending volumes. 2 “Goldman Sachs so far has loaned $3 billion to Main Street America,” Yahoo Finance, April 17, 2018. Goldman used established digital sales and marketing techniques to become a leading provider of consumer finance in a short period of time. It hit $1 billion in loans in just eight months while many competitors took over a year. Marcus’ success in the US led it to launch in the UK in September 2018, where it captured 100,000 customers for its savings product in the first month 3 “Goldman Sachs signs 100,000 customers to its new British bank Marcus, in just over a month—and now plans a cash ISA,” thisismoney.co.uk, November 3, 2018. —further evidence that while technical innovation is important, a sound business model remains critical.

Other investment banks have focused more on robo-advisory services in their digital efforts. In 2017, Morgan Stanley launched Access Investing, a digital wealth management platform in the US with a minimum investment threshold of $5,000; the same year, Merrill Lynch (Merrill Edge Guided Investing) and Deutsche Bank (Robin) launched similar offerings. Vanguard was even earlier to react to the trend, using their existing brand and customer base to grow their offerings rapidly since launching in 2015; digital assets under management reportedly reached $120 billion in 2018.

7. More attackers and incumbents are partnering

An increasing number of incumbents and fintechs are realizing the benefits of combining strengths in partnership models. As they reach saturation point in their native digital marketing channels, many fintechs are now actively looking for partnerships to grow their business. They bring to the table their higher speed and risk tolerance, and flexibility in reacting to market changes. Larger ecosystem firms also bring broad and sticky customer bases from their core internet businesses.

Incumbent financial institutions are more cautious when it comes to partnering, especially in their core current account and mortgage products. But their large customer data sets, amassed over long periods of time, are highly attractive attributes for fintechs. Further, incumbents’ compliance and regulatory competencies can be highly valuable for newer, smaller entrants. We expect both partnerships and acquisitions to increase as a result.

A number of global banks are already on the partnership path. JPMorgan’s digital strategy includes recent partnerships with fintechs including OnDeck, a digital small business lender, Roostify, a mortgage fintech, and Symphony, a secure messaging app. In 2015, ING launched what it called “FinTech Village,” an accelerator for start-ups in Belgium, led by a dedicated head of global fintech. ING Ventures, launched in 2017, is a €300 million fund focused on fintech investing, and has invested in or partnered with a total of 115 start-ups over the last three years. In some instances, ING has built strategic partnerships with the companies they invested in, such as the automated online lending platform Kabbage.

China’s financial institutions tend to take a different approach, partnering with large technology ecosystem firms as opposed to smaller fintechs. Each of China’s “big four” banks 4 Industrial & Commercial Bank of China, China Construction Bank, Bank of China, and Agricultural Bank of China. has partnered with at least one ecosystem firm in 2017. Examples include a joint fintech laboratory launched by Bank of China with Tencent; and an agreement between China Construction Bank, Alibaba, and Ant Financial to digitize customer banking experiences.

What’s next for China’s booming fintech sector?

8. infrastructure fintechs: potential is high, sales cycles are long.

Like a giant tower of Jenga pieces, an enterprise’s legacy IT stack has many building blocks, some purchased off-the-shelf and some developed in-house. As in Jenga, removing or replacing “pieces” of the IT stack can be risky and complicated. Digital innovation is often hindered by legacy IT, particularly the core banking system (CBS), and the costs of changes are high.

Several CBS fintechs have emerged, seeing legacy IT issues as a golden opportunity for disruption. Like those providing “picks and shovels” to miners during a gold rush, they are not seeking to disrupt incumbents, but to build a profitable business by helping banks upgrade their technology capabilities in a modular, open-API world. Many financial institutions are evaluating replacing their core IT systems in the next five to ten years. However, for now, the CBS fintechs are finding business with smaller or newer banks. New10, the digital bank launched in the Netherlands by ABN Amro in 2017, used Mambu, an infrastructure attacker fintech, for their CBS.

CBS fintechs may face an uphill battle with larger institutions, given long sales cycles and risk aversion, particularly for something as important as core infrastructure. Large banks’ traditional procurement and onboarding process for new vendors or applications may present a challenge to newer fintechs that lack a track record and compliance rigor.

CBS fintechs are likely to continue, therefore, to target smaller banks or focus on non-core areas. This should allow the fintechs to prove their concepts and build their reputations, while fine-tuning their product offerings for larger customers.

9. There is a tentative return to public markets

As fintechs mature, at some point they must decide whether to go public. While both investors and employees require a path to liquidity, many fintech founder-CEOs have preferred to stay in the private market to avoid the burdens of public listings—as well as the batterings received by other fintechs that tested the IPO market.

Many peer-to-peer (P2P) lending fintechs—among the earliest to list in the US—saw valuations drop drastically in the public market. A number of Chinese lending fintechs that listed on the NYSE and Nasdaq in 2017 subsequently traded much lower than their IPO prices, driven by reports of bad loans and unfavorable regulations in China.

However, there are signs of a change in mood. Adyen, the Dutch payments fintech, listed in June 2018, and has seen its share price double. Funding Circle, the UK P2P lender, listed in October 2018. Despite the lackluster performance of the aforementioned Chinese fintech lenders, another Chinese P2P lender, X Financial, listed in September this year. With fintechs scaling and on the path to profitability, executives will have to balance higher liquidity and greater public scrutiny as they consider IPOs.

10. Chinese fintech ecosystems have scaled and innovated faster than their counterparts in the West

China’s fintech ecosystems are structurally different from their counterparts in the US and Europe. Outside China, the most successful fintechs are typically attackers that have focused on one vertical, such as payments, lending, or wealth management, deepening their core offering and then expanding geographically. In the US, for example, PayPal and Stripe focus mainly on online payments; Betterment and Wealthfront offer digital wealth management; and LendingClub and Affirm are alternative lenders—all proven strategies.

In contrast, in China, the most successful fintechs have been tech giants which have built financial ecosystems on the back of high-engagement consumer platforms (Exhibit 3). Ant Financial—built on the back of Alibaba's e-commerce platform—offers one-stop business-to-consumer fintech solutions, with products such as Alipay for online payments, Yu’e bao for investments from the Alipay wallet, MYbank for digital banking and lending, and many others. Similarly, Tencent provides a wide range of digital financial services on its pre-existing social platform.

These ecosystems have innovated and scaled rapidly. The technology giants that orchestrate them have access to enormous amounts of data to develop and refine their offerings (e.g., tailoring services to different user segments based on their lifestyle and habits) and can assess risk more effectively based on customer social media profiles (Tencent’s WeChat messaging app) or spending behaviors (Alibaba’s Tmall and Taobao e-commerce sites).

While there are comparatively fewer standalone players in China, those that are successful are by no means small. Fintech lenders Qudian and PPdai went public in 2017 and listed at $7.9 billion and $3.9 billion market cap at IPO, respectively.

Three trends will shape China’s digital financial services landscape. First, the large ecosystem players will continue to use technology and digital channels to roll out their financial services offerings, either by going direct-to-consumer or, increasingly, by providing white-label fintech-as-a-service offerings to small and medium-sized financial institutions.

Secondly, as in the West, we expect to see traditional banks and insurance companies investing heavily in digital offerings and leveraging their brands and existing customer relationships to fight back more successfully against pure digital players. Ping An is the most advanced of the traditional financial services players in terms of investing heavily in a range of digital offerings and beginning to create a digital ecosystem of its own.

Third, increasing government regulation will likely gradually weed out noncompliant or less competitive smaller fintechs. The government has tightened control in payments, P2P lending, and robo-advisory in the past year, and the trend is expected to continue. This could lead to further consolidation in the next one or two years—more good news for the large technology firms seeking to dominate the landscape.

Fintech has evolved considerably in the last few years and continues to change rapidly. Indeed, the trends outlined in this paper will likely give way quickly to new movements, as new winners emerge and existing leaders mature and diversify.

Fintech investors must be very selective in deploying capital, as we approach the possible endgame in this wave for some sectors and companies. With large technology companies knocking at their doors, incumbent financial institutions should proactively engage with fintech disruption, whether by building their own capabilities or by partnering or acquiring. For fintech attackers and infrastructure providers, the road to success is not easy. As the fintech markets mature, firms from the four categories of fintechs will compete directly in some cases, and join forces in others.

Stay current on your favorite topics

Jeff Galvin is a partner, John Qu is a senior partner, and Arthur Shek is an associate partner in McKinsey’s Hong Kong office. Feng Han is a partner in the Shenzhen office, Sarah Hynes is an expert in the London office, and Kausik Rajgopal is a senior partner in the Silicon Valley office.

Explore a career with us

Related articles.

Open banking’s next wave: Perspectives from three fintech CEOs

Fintech decoded: The capital markets infrastructure opportunity

Success and Failure Retrospectives of FinTech Projects: A Case Study Approach

• Open access
• Published: 22 October 2020
• Volume 25 , pages 259–274, ( 2023 )

Cite this article

You have full access to this open access article

• Dakshitha N. Jinasena 1 ,
• Konstantina Spanaki   ORCID: orcid.org/0000-0001-6332-1731 1 ,
• Thanos Papadopoulos 2 &
• Maria E. Balta 3  

13k Accesses

11 Citations

Explore all metrics

The popularity and potential of FinTech for generating business value has been highlighted in an evolving number of studies. Nevertheless, there is still ambiguity on the success of such disruptive technologies. To address this gap, this paper draws on a case study of an IT vendor in Japan. We interview key stakeholders involved in the case project to (i) explore the success factors of FinTech applications adopted by non-financial organisations, (ii) illustrate the applicability of the multi-dimensional project success framework in FinTech projects, and (iii) highlight the importance of the FinTech Project Management field that warrants further investigation. We contribute to the IT Project Management field, where we extend the theoretical background with aspects of FinTech adoption and success. We also inform practice in terms of lessons for managers to improve the existing processes and assist their organisations in business transformational initiatives using FinTech.

Similar content being viewed by others

What determines FinTech success?—A taxonomy-based analysis of FinTech success factors

An it project as a plaything of its organizational environment: long-term challenges in financial services.

TRIZ Potential for IT Projects

Avoid common mistakes on your manuscript.

1 Introduction

Over the last years, Financial Technology (FinTech) has received considerable attention from both academics and practitioners due to their potential in digitally transforming networks of supply chains in almost every business sector (Chen et al. 2019 ; Fosso Wamba et al. 2018 ). Global funding of FinTech projects has been rising rapidly from $38.1 billion for all of 2017 to $57 billion in 2018 (KPMG 2018 ). FinTech builds upon Information Technology (IT) to offer financial products and services within the banking industry, with more advanced risk management, trade processing, cash management and data-analysis tools deployed by the financial institutions (Gomber et al. 2018 ; Zavolokina et al. 2017 ). Hence, the FinTech sector has applied disruptive technologies (e.g. Blockchain, Data Analytics, etc.) transforming existing business models and developing new products (e.g. cashless payments, robo-advisors etc.) in the financial services industry. More importantly, FinTech offers trust, confidence, and transparency for the systems and transactions in a field where these aspects are most required (Gozman et al. 2018 ; Leong 2018 ; Papazafeiropoulou and Spanaki 2016 ).

The literature on FinTech has mainly focused on its business value, with scholars scoping at the potential and benefits accruing from its adoption (Belanche et al. 2019 ; Mori 2016 ; Ryu 2018 ). For instance, Pollari ( 2016 ) has investigated the benefits of Fintech from a strategic perspective, underlining its importance for creating trust and suggesting that it can assist in lowering entry barriers for new entrants, creating new business models and new products, and streamlining processes. Hung and Luo ( 2016 ) studied the strategic planning of a Bank for investing in a Fintech company in Taiwan. In contrast, Arner et al. ( 2017 ) have looked into the Fintech benefits for the financial sector, including increased trust in the financial services industry, reduced time-to-market for innovative products, employment for financial professionals, and creation of financial start-ups. Leong ( 2018 ) have investigated the development and emergence of a Fintech firm from an information management perspective, looking at digital capabilities such as e-commerce and big data analysis. What is evident from the literature (Arner et al. 2017 ; Fosso Wamba et al. 2018 ; Pollari 2016 ) is that the key benefit of Fintech is on providing business value especially in digitally transforming businesses and eliminating transaction costs.

The popularity and potential of FinTech for generating business value has been highlighted (Belanche et al. 2019 ; Fosso Wamba et al. 2018 ; Leong 2018 ); however, there is still ambiguity on how to understand the success of technology adoption within the last century (Marikyan et al. 2020 ), and specifically FinTech adoption (Fosso Wamba et al. 2018 ). Investigating such a topic is essential as it will help organisations unlock the value that Fintech can add to their efficiency and performance and improve their current approaches of data-driven sustainable development and capabilities (Mikalef et al. 2018 , 2020 ). Furthermore, as incorporating Fintech and digital technologies in organisations requires examining their adoption from a broader perspective, understanding and assessing the value of these technologies can be rather critical in various terms. The importance is highlighted when (i) designing and refining FinTech, ensuring that resources are in place for its development/adoption and that it is linked to strategic objectives and KPIs (Mikalef et al. 2019 ) and (ii) creating a Fintech ecosystem (Pappas et al. 2018 ; Tsujimoto et al. 2018 ). The FinTech ecosystem is comprised and supported by the organisational actors, their generation of data, and their interactions and communications that will lead to the creation of value, as well as to business and societal change (I. Lee and Shin 2018 ). Diemers et al. ( 2015 ) argue that FinTech creates an ecosystem that includes five elements, that is, the FinTech start-ups (providing the services), technology developers, government (legislation), financial customers, and the traditional financial institution. Consequently, due to the complexity of the stakeholders involved in this ecosystem, there is always a question if an assessment of FinTech value and success goes beyond the assessment of IT value, as new technologies can result in further risks (Jones et al. 2019 ).

Therefore, this research focuses on what constitutes the value of FinTech projects. It does so by assessing the success of FinTech projects based on IT project success principles (Matta and Ashkenas 2003 ; Shenhar et al. 2001 ). The research question of this study, is hence, how can organisations assess their Fintech initiatives and realise gains and business value from their efforts? Explicitly, we draw on a case study of a project by an IT vendor in Japan and interviews with Project Management professionals from a wide range of FinTech segments. We contribute to the field of FinTech and IT project management by (i) exploring multi-dimensional the success factors (Shenhar et al. 2001 ) of FinTech applications adopted by non-financial organisations, (ii) illustrating the applicability of the multi-dimensional project success framework (Shenhar et al. 2001 ) in FinTech projects and (iii) highlight the FinTech Project Management field as an area for future research studies. Our findings can provide important lessons for managers to improve the existing processes and assist the organisations in business transformational initiatives.

The paper is structured as follows. After a review of the literature on FinTech retrospectives and the success and failure factors within the IT Project Management space, the methodology of the study is followed by the presentation and discussion of the findings. In conclusion, the paper presents the lessons learnt from the retrospectives and proposes the topic area for research and improvement for the future.

2 Background

In this section, we briefly discuss the evolution of FinTech and then we transition to IT project management and in particular assessment of IT projects using the multi-dimensional project success framework (Shenhar et al. 2001 ) to explore further the retrospectives of success and failure. The background and previous research in FinTech and IT project success assessment assist in building the exploratory case study theoretically and extending the theoretical approaches within the scope of IT project management.

2.1 The Evolution of Financial Technology (FinTech)

“FinTech” is a compound term for Financial Technology, which denotes the organisations or the representatives of the organisations that combine financial services with innovative technologies (Fosso Wamba et al. 2018 ). There are multiple definitions for “FinTech” mostly as a technologically enabled financial innovation, which leads to new business models, applications, processes and products that could have a material effect on financial markets, institutions and the provision of financial services (Fosso Wamba et al. 2018 ; McNevin 2016 ; Schwabe 2016 ). Fintech in the study of Ryu ( 2018 ) appears as an emerging financial service or sector combined with financial and IT services or industries. Lee and Shin ( 2018 ) present FinTech as an innovative ecosystem comprised of various players, as it is also presented in the study of Diemers et al. ( 2015 ). The key stakeholders of the FinTech ecosystem could be fintech start-ups technology developers, government, financial customers and traditional financial institutions (I. Lee and Shin 2018 ). According to the same study (I. Lee and Shin 2018 ), the FinTech industry introduces various business models relevant to each product or service provided: payments, wealth management, crowdfunding, lending, capital market and insurance services. These organisations aim to attract clients through products and services that are more automated, user-friendly, efficient and transparent than those currently available through the traditional banking institutions (I. Lee and Shin 2018 ; Zavolokina et al. 2017 ). In addition to offering products and services within the banking industry, FinTech branches out towards distribution of insurance and other financial instruments as well as third-party services (Kavuri and Milne 2019 ).

The link between financial and IT services is not always self-evident (Ryu 2018 ), as the opportunities, risks and legal implications of Fintech are different from existing templates for finance or conventional IT approaches. Arner et al. ( 2017 ) mention the first differentiating factor that comes from the policy-making agenda and the industrial context and is not from the technology itself but from the actors applying the technology (so the policy-making context for FinTech is actor-driven in contrary to IT that is technology-driven). Secondly, IT has a significant role in FinTech as the facilitator of the FinTech product/services, enabling and providing them with distinguishing features (Ryu 2018 ). However, IT is not only a facilitator or an enabler for effectively delivering financial services but a true innovator or a disrupter for redesigning the existing value chain while bypassing the conventional financial operation patterns(Arner et al. 2017 ; Gomber et al. 2018 ; Ryu 2018 ). That is also the reason why this study will explore the FinTech project success through an IT project management lens to understand FinTech success where IT is the critical factor in non-financial companies. The IT project success framework (Shenhar et al. 2001 ) could provide a multi-dimensional understanding required for this study in terms of the actors, IT and overall project objectives for FinTech project success in non-financial companies.

Since FinTech involves the introduction of IT to meet the financial needs and demands of users, the question of whether FinTech related issues are different from issues related to IT comes to the foreground (Belanche et al., 2019 ; Leong, 2018 ). For instance, issues related to FinTech adoption have been studied in the IS literature including payment (Foster and Heeks 2013 ), crowdfunding (e.g., Burtch et al. 2013 ), and lending (e.g., Burtch et al. 2014 ). Recent work has looked into the dynamics between banks and telecoms when it comes to providing mobile payments (De Reuver et al. 2015 ), and the importance of FinTech from a strategic perspective arguing about its assistance in lowering barriers for new entrants, creating new business models and products, as well as streamlining and improving processes and operations (Hung and Luo 2016 ; Pollari 2016 ). Arner et al. ( 2017 ) argued that FinTech could bring numerous benefits for the financial sector, including trust in the financial services, reduced time-to-market for new products and services and the creation of start-ups. In contrast, Leong ( 2018 ) looked at benefits from an information management perspective (digital capabilities such as e-commerce and big data analysis) during the development of a FinTech company in China that offers microloans to college students (Leong 2018 ).

Still, there is limited, if any, literature that discusses the assessment of FinTech value (Chen et al. 2019 ; Fosso Wamba et al. 2018 ). Such research is important as it assists organisations that would like (i) to unlock the value of FinTech, improving their current approaches of data-driven sustainable development; (ii) to design, refine, and adopt these technologies (Mikalef et al. 2018 ) ensuring that appropriate resources are in place for their strategic development and that FinTech is linked to their strategic objectives and KPIs (Mikalef et al. 2019 ); and (iii) to create a FinTech ecosystem (Pappas et al. 2018 ; Tsujimoto et al. 2018 ) that is comprised and supported by the organisational stakeholders, their data, and their interactions and communications. Such an ecosystem is essential as it will enable organisations to create business and societal value.

2.2 Project Success Framework

Literature has long acknowledged project value (success) as a multi-dimensional construct (e.g. Engelbrecht et al. 2017 ; Gingnell et al. 2014 ). In the IT literature, measuring systems success is a dominant area of interest in multiple studies (Dwivedi et al. 2014 ; Zhou et al. 2018 ), and the focus is mostly on the “IT” technical aspects and not always on the IT project management and its success (e.g. DeLone and McLean 1992 ; 2003 ; Petter et al., 2012 ; Seddon, 1997 ; Tan & Pan, 2002 ). For instance, following the Project Management Institute guidelines, project success is conceptualised in terms of whether the project adhered to budget, schedule, and specifications (Gingnell et al. 2014 ; Standish Group 2015 ) or whether the realisation of benefits takes place. Other literature perceives project success as comprised of two parts, namely “project management success” referring to the short-term view of project success (the accomplishment of cost, time, and quality objectives), and “project success” (budget, schedule, specifications, objectives, satisfaction stakeholder/user needs) (Gingnell et al. 2014 ; Standish Group 2015 ).

Literature has discussed the application of the IT/IS Success Models on IT projects to assist the emerging IT/IS requirements (Petter et al. 2012 ). These models have mostly synthesised the latest various IT Success perspectives and measures, measuring success based on the needs of the organisations and stakeholders. These models were developed mostly around the context of Enterprise Systems (Baskerville et al. 2000 ; Davenport 1998 , 2000 ; Davenport et al. 2004 ; S. M. Lee and Lee 2012 ; Scott and Vessey 2000 ; Tan and Pan 2002 ) and serve as success frameworks in the broader area of Technology Management. Still, assessment of IT project success can be challenging as costs, risks and benefits can be underestimated (Bhattacharya et al. 2012 ; Bhattacharya and Seddon 2011 ; Dalcher 2012 , 2015 ; Engelbrecht et al. 2017 ; Marchewka 2009 ). More attention needs to be devoted to how organisations assess IT project success and revise their business strategy around the new technology (Choudrie and Dwivedi 2005 ; Dwivedi et al. 2013 ).

In our study, we assess FinTech project success following the Multi-dimensional Project Success Framework (Shenhar et al. 2001 ) that focuses on assessing IT project success. The rationale behind the use of this framework is twofold: (a) FinTech projects are part of an organisation’s strategic initiative as they are executed with short- and long- term objectives in times of technological uncertainty, and (b) FinTech Project Success is measured taking into consideration the various interests and perspectives of the key stakeholders involved. Therefore, the Multi-dimensional Project Success Framework focuses on both the time-dependency of technological projects and the multiple interests of the stakeholders. It discusses project success in terms of the following dimensions (Shenhar et al. 2001 ):

Success Dimension 1 – Project Efficiency (Meeting Constraints): Project efficiency is a short-term dimension that expresses the efficiency in which the resource constraints were met and how the project was managed. While the dimension could be assessed immediately, it is difficult to judge long-term project success and the organisational benefits. However, due to the shorter product cycles and the increased competition, time-to-market has become a vital component in gaining competitive advantage. The dimension, thus, assists organisational business performances through the enhancement of project efficiency, and act as an enabler for early product introduction leading towards product competitiveness.

Success Dimension 2 – Impact on the customer: This dimension links the customer and addresses the criticality of meeting the customer requirements. Meeting functional and technical specifications as well as the performance measures comprises within this dimension. Meeting performance affects the customers, who assess the product’s feasibility towards their business needs. Therefore, the framework considers meeting performance objectives to be one of the central elements. From the development team’s perspective, the dimension also includes the level of customer satisfaction and the willingness of the customer to work in collaboration for future generations of the project or separate projects.

Success Dimension 3 – Business and Direct Success: This dimension addresses the impact, both immediate and direct, the project may have on the customer organisation. It includes the measures of the new process performing time, cycle time, yield, and quality, all of which measures the impact on the performance of the organisation.

Success Dimension 4 – Preparing for the Future: This dimension directs the challenge of preparing the organisational and technological infrastructure for future use. It is a long-term dimension that addresses the questions regarding the organisational preparation needed to exploit future opportunities such as other markets, ideas, innovations and products.

All these dimensions are essential during different intervals with respect to the completion of the project. The first dimension is relevant during the project execution phase, where the attributes such as meeting resource constraints and measuring deviations from plans could be measured. However, upon the completion of the project, the relevance of this dimension tends to diminish over time. Following that, the second dimension, that is, the impact on them and customer satisfaction are essential. The impact of the third dimension, the business and direct success, can only be experienced much later. The relative importance of the fourth dimension can only be measured a few years following the completion of the project when the long-term benefits could be realised.

2.3 The Japanese FinTech Context

Our case study lies within the Japanese context. Japan is experiencing rapid growth within its FinTech industry (Nakaso 2016 ). The investment towards the FinTech industry in Japan rose to 65 million USD in 2015, which amounts to nearly 20% growth from 2014 (Accenture 2016 ). Although the industry is proliferating, the number of FinTech organisations within Japan is limited (Suzuki and Ochiai 2017 ), out of which a large percentage is currently delivering new financial products and services through the incorporation of up-and-coming technologies such as AI, Blockchain and Cloud-Computing (Suzuki and Ochiai 2017 ). At the same time, the rapid proliferation of smartphones in the country since 2010 has led to the emergence of FinTech firms offering application-based services for Personal Financial Management such as Moneytree, Money Forward and Zaim (Khare et al. 2019 ).

In the recent years, FinTech application providers have begun to integrate their services with traditional financial institutions with the most prominent example being the collaboration between Money Forward and the SBI Sumishin Net Bank alongside Tokai Tokyo Securities (Khare et al. 2019 ). Behind the momentum, the government has recognised the importance of FinTech towards the country’s economic growth and has stated the need to set new research and development themes to facilitate the creation of new business areas (Nakaso 2016 ). Furthermore, with the relaxation of the regulatory framework and the availability of new fund-raising methodologies for the start-ups, the domestic market is expected to experience growth in the years ahead (Khare et al. 2019 ). Given the rapid growth, popularity, and challenges related to FinTech projects in Japan, there is a need to understand better the success of such projects (Winkler et al. 2008 ) and how adoption success could be achieved as an overall objective, especially in the non-financial organisation, providing the impetus for researching within the Japanese context.

3 Methodology

The research follows the exploratory case study approach (Yin 2009 ), as the focus is on realising the dynamics present within single settings (Eisenhardt 1989 ). The case of FinTech Project Management cannot be separated from the organisational context (Orlikowski and Baroudi 1991 ), thereby allowing concepts to emerge from the data (Miles and Huberman 1994 )while answering questions as to how and why are posed (Yin 2009 ). The interest of this research study is to provide insights into the FinTech Project Management areas of interest from ABC’s case study evidence (ABC is a pseudonym). The specific case was selected based on shorter-term forethought and intention parameters (Pettigrew 1990 ). The network and familiarity of the researchers with the involved organisations and the Japanese context in the chosen project made the selection of the specific case an informed choice (with a higher likelihood of being granted access) based on resource and opportunity considerations (Pan and Tan 2011 , p. 165) . The chosen project was a representative example of FinTech initiative in Japan, but not a unique one (Siggelkow 2007 ), providing ground so as the findings can be generalisable (Pan and Tan 2011 ).

3.1 Research Design

A qualitative approach was followed where Project/Programme Managers were interviewed. The research design followed four stages: the first stage involved getting an in-depth understanding of the products and services offered in the FinTech industry, the outlook of the Japanese FinTech market, commercially deployed IT Project Management frameworks and the success factors of successful IT project execution (review of previous studies of FinTech and IS Project Success). In the second stage, the case study at ABC Company was discussed through interviews with various stakeholders of a failed project initiative, that is, DM (first round of interviews –exploratory interviews). Through these interviews, the study aimed to identify critical success factors for the execution of FinTech projects and establish the areas of concern for senior management. The third stage involved benchmarking of the processes, tools, techniques, frameworks and technologies utilised to execute IT projects in the Japanese FinTech industry (second round of interviews –confirmatory interviews). Information gathered through the initial three stages was coded through using thematic analysis.

3.2 Case Background: The ABC Company

The data collection follows a failed project initiative DM of “ABC” (a pseudonym) chosen to serve as the unit of analysis, the base for the overall objective of the case study. ABC is a software firm, located in Japan, which specialises in providing a range of software development, system integration services and IS/IT supporting services. ABC, founded in the early 90ies, has been a very successful IT service provider over the last decades and continues to do so by providing high-quality advance IS/IT solutions to the customers.

Recently, ABC, as an IT supplier undertook a project entitled “DM” (Fig.  1 ) to develop a portion of a cashless payment solution in collaboration with the IT services provider NTT DATA. The collaboration between the ABC and the NTT DATA seemed promising as in Japanese context; such collaborative pattern is often in order to deliver the faster and more reliable project (but also to maintain “good relationships” and “trust” within the sector). However, the project failed to deliver the objectives set by the customer (the customer was a non-financial organisation acquiring to adopt cashless payments), thus, tarnishing the relationship between the two organisations. The aftermath of the situation prompted the senior management of the ABC to adopt a new business model where the organisation would transition from being an IT vendor/supplier (B2B) to an off-the-shelf solutions provider (B2C) thus initiating an internal business transformation within the firm. A critical part of this transformational process was to evaluate the current Project Management methodologies, tools and techniques utilised by the team leading the project and to make necessary improvisations to ensure that the failure of the project DM would not be repeated.

The DM Project

3.3 Data Collection and Analysis

Our sampling strategy was based on informed decisions of the researchers and the type of the study (Suri 2011 ). Identifying information-rich cases can be achieved through purposeful sampling, as it provides access to key stakeholders of the phenomenon under research (Suri and Clarke 2009 ). An intensity sampling approach for data collection is employed to avoid sample bias from the case study (Benbasat et al. 1987 ; Siggelkow 2007 ). The study herein followed Patton’s principles ( 2002 ) about sample bias through a selection of cases that are excellent or rich examples of the phenomenon of interest, but not highly unusual cases. Cases that manifest sufficient intensity to illuminate the nature of success or failure, but not at the extreme (Patton 2002 ).

A hybrid combination sampling technique was applied, consisting of expert views and maximum variation of these views. Expert sampling is a form of purposeful sampling, which is used to glean knowledge from individuals who have a particular set of expertise (Patton 2002 ; Suri 2011 ). This approach is mainly dependent on the judgment of the researcher during the selection of the units that are to be studied (Suri 2011 ). Unlike the techniques used under the probability sampling, the objective of purposeful sampling is to develop a sample with the intention of generalising from the respective sample to the population of interest (A. S. Lee and Liebenau 2013 ). In return, the expertise being investigated could form the basis of the research while highlighting new areas of interest during the exploratory phase of the qualitative research (Patton 2002 ; Suri 2011 ).

Following the tenets of purposeful sampling, eight participants were interviewed in two rounds (exploratory and confirmatory), all of whom have IT Project Management expertise. The common denominator of the participants is the experience each of these individuals possessed in the execution of IT projects within the FinTech space in Japan and worldwide. The study included the individuals who have participated in the DM project and had managed such projects for over three decades as well as ones who have recently embarked on the journey of IT Project Management. The purpose here was to identify perspectives the individuals have on each of the dimensions of the Multidimensional Project Success Framework and their criticality towards project success within the Japanese FinTech market (Table 1 ).

The interviews were divided into two sections for each of the rounds (exploratory/confirmatory) (Table 5 in the Appendix). The first part intended to establish the experiences each of the participants had within IT Project Management environments (Exploratory, round 1). Additionally, the section provided an insight to the amount, and the types of projects each of these individuals were managing; the project management methodologies they have commonly employed; how they perceived IT project success as an individual as well as an organisation; and level of involvement they have had on the IT projects managed. The second half of the questions (confirmatory, round 2) intended to analyse the responses of the interviewees and relate that to each of the four dimensions presented in the Multidimensional Project Success Framework. All the interviewees were asked to provide feedback on the criticality of each dimension to identify the effectiveness of the framework. We note here that the questions included in Table 5 (Appendix) structured the protocol for each of the foci (Project Experience/Multi-dimensional framework). This means that for each one of the questions, follow-up questions were asked, including asking the interviewees for examples to justify their answers.

The case followed the thematic analysis approach (Boyatzis 1998 ; Braun and Clarke 2006 ) for identifying codes and themes in the dataset. The coding stage of the study included the steps of Braun and Clarke ( 2006 )namely: a) Familiarisation with the data, b) Generating initial codes, c) Searching for themes, d) Reviewing themes, e) Defining and naming themes, f) Producing the report. We used the dimensions of Project Success Framework (Shenhar et al. 2001 ) as themes (Table 2 ). These themes were continuously refined as the researchers went back and forth to the data, building thus the subthemes and the analysis (see Table 6 in Appendix).

4 Analysis and Discussion of the Findings

The study focused on the research question on a) how organisations can assess their Fintech initiatives and b) how they can realise gains and business value from their efforts. Therefore, there are two stages for the interviews; the first is focusing on the assessment of the FinTech initiatives (exploratory stage of the assessment ways) and the second on the business value of them (explaining further the value gained from such initiatives and the assessment efforts through the confirmatory stage).

The following section presents the findings of the interviews through analysis and the associated quotes. The discussions presented herein stem from the discussions of the first and second round of the interviews with the participants/stakeholders. The first stage was exploratory, and the second a follow-up confirmatory stage, where the participants had the chance to revise and enhance the discussion with more insight. The interview rounds (first and second) were not distinguished for presentation purposes but also because it is the profile of the participant that provides credibility to the quotes and ideas expressed (purposeful sampling technique).

4.1 Exploratory Analysis (Round 1)

4.1.1 project efficiency.

As per the responses gathered, the data could be divided into two categories. First, the interviewees who were working on the customer-side (Participant 5, Participant 6 and Participant 7) all agreed that the “operational constraints”, although they act as a baseline for project completion, are not the most important factor when it comes to measuring the overall project success.

" In general, the overall success of the project is determined whether there is a roll-out in the end. As quality is the most important factor in financial systems, exceeding the schedule/budget constraints can be acceptable. If the schedule is un-movable, exceeding the budget is the only way because quality cannot be compromised ". ( Participant 7)

This was further verified through the response of Participant 6 , who discussed additional factors:

" Budget and schedule is always a limitation, and naturally, the project has to be delivered with the allocated budget and time. However, in HSBC exceeding the budget would not be considered as a failure (not drastic budget deviations). If project/programme management foresees such case as "a showstopper" we always have the flexibility to avoid project failures by adopting other methods like adjusting the scope of the project / adopt phase approach for the product delivery ".

On the contrary, Participant 8 added that

" This varies as per the contractual obligations the organisation has with the clients. More often than not, it is encouraged to complete the project within the set operational constraints based on the time, cost and quality. In exceptional situations, the client would agree to relax some of the set constraints or compromise on one or more of the said aspects but, internally, it is not encouraged to do so ".

Participant’s 8 view was further echoed by the ABC correspondents, all of whom emphasised the importance of meeting the operational constraints set aside at the start of the project. It could be understood through the data collected that the Project Managers who managed FinTech Projects for Supplier organisations perceived project success as the ability to produce project deliverables within the constraints set by the customers to manage the profit margins for their respective projects . Whereas their counterparts correlated the impact, each project had on the business strategy to the overall project success.

4.1.2 Impact on the Customer

There was a mutual agreement between the interviewees on the importance of customer satisfaction to a Project Manager.

Participant 6 stated that the business streams fund most of the technology implementation projects; hence, “customer satisfaction would often come from the internal business departments (e.g. Retail Banking, Corporate Business etc.). Customer satisfaction is one indicator in the project success” .

He further mentions that, in order to facilitate this, design documentation such as functional and technical specifications as well as business requirement documents are shared with the business stakeholders and processed only upon the sign-off from the business. He believes that this ensures “ the business has an early understanding of the product, which leads to the confidence of the system as well as the satisfaction of the functionalities ”. This could further be verified by the response of Participant 7 , who added that “the customer is the Project Sponsor, who usually is from the business department. Customer Satisfaction is paramount as the Project Sponsor is the one who provides the funding for the projects” .

It was discovered that the supplier-based Project Managers felt more strongly about fulfilling the criteria set within this dimension and strongly emphasised the importance of customer satisfaction for future business opportunities. Participant 1 felt that a “Project Manager located onsite at a customer organisation effectively acts as an Account Manager between the two organisations and, thus, played a crucial role in the overall revenue generation” .

Participant 8 added further into this statement saying that “the organisation I work for are currently on the PSL (Preferred Suppliers List) of our customer organisations. Usually, at the end of each year, there is a review of this list, and poor performers are let off. Therefore, the satisfaction of our clients indirectly equates to the financial health of our organisation and any benefits we might receive as employees” . Participant’s 7 view on that was quite indifferent on this subject as he mentioned that “in financial institutions, the customers are the business departments. Therefore, the success/failure of the individual project does not affect future business opportunities” . He made a division on the perspectives between the Project Managers from the customer organisations to those of Supplier organisations.

4.1.3 Business and Direct Success

The study identified that, depending on the nature of the IT projects, the measures to assess the business and direct success would be different. These measures can be summarised as follows:

Efficiency Enhancement Projects : Tasks and are completed faster, and the measures would be based on the time saved.

Cost Saving Projects : Projects that are initiated to reduce the cost of running the business. For example, the electronic archive of documents will eliminate paper and printer costs, and the measure would be the dollar amount saved.

Labour Saving Projects: The projects that are initiated to automate the day-to-day processes in the business. For example, Robotic Process Automation (RPA) can eliminate manual work, and the measure would be the labour cost saved.

Profit-Driven Projects: New products and services are developed through the project to create a new, enhanced and existing stream of revenue generation for the firm. For example, for a new financial product roll-out, and the measure would be the profits generated.

Feature Enhancement Projects: Usually, these projects increment feature enrichment, and the benefits would be intangible. The success measure would be based on the number of fixes and enhancement made.

Participant 7 further added that “ the benefits would be felt immediately after the roll-out, but the full benefits will usually take some time to be completely realised ”, whereas, he admitted that in some cases, it would be difficult to estimate when the benefits would be fully realised.

In addition to the above categorisation, two sub-categories were identified shedding more light into the process of the measurement of the business and the direct impact:

Run-the-Business Projects: Projects under this category mainly involved in enhancing the existing IT systems and the technology within the organisation. This includes upgrading software versions and software functionality and evergreening of technology. For such changes, the common areas that would measure the business impact would be the manual process elimination; the overall cost savings; improvement of performances and the capacity of the systems (in order to handle larger volumes of data). Impact of such projects can be seen immediately or within a shorter period.

Change-the-Business Projects: These Projects make changes to the way the business operates and serve the customers. This often includes new technological implementation and new system implementation for internal as well as external customers. The impact would be measured on the time the organisation takes to penetrate the target market segments; offer new services to customers, and reduce the cost for this procedure. In such projects, the impact could be felt mid-to-long term, which could vary from 6 months to 2 years.

On the contrary, Participant 1 stated that the “ primary attributes utilised internally to measure the success of the project were the ability to deliver the chunks of works at a time agreed prior to the initiation of the project and also the ability to meet the functional and non-functional requirements as agreed ”. Participant 1 further reinstated that any additional costs that occurred during the project life will need to be borne by the supplier (ABC) and, hence, the importance is placed upon the operational constraints . Participant 2 and Participant 3 did not comment on this matter as they felt that they had little insight into the internal measures taken by the customer organisations.

4.1.4 Preparing for the Future

From the responses gathered, this dimension emerged as the one where the least amount of attention was paid. Participant 2 , Participant 3, and Participant 4 , all agreed that due to the nature of their responsibilities, they are doubtful to be involved nor to have an insight to the long-term business strategy of their respective customers. Participant 6 felt that most of the projects he manages are in place to improvise the current business processes and the overall efficiency of the business. He further stated that “some implementations are a mixture, hence, could not clearly be defined as strategic (e.g. exploiting new markets) or enabling for future (e.g. innovation)” . Participant 5 , who is exercising the responsibilities of Chief Information Officer, stated that aligning the IT strategy alongside the organisational strategy and harnessing new technical innovations through the Research and Development Centre lies within his current responsibilities. He furthered this statement saying, “ it is a continuous process in which the department seeks to improvise on how it could benefit the business through the cutting-edge technology”.

4.2 Confirmatory Analysis (Round 2)

The case study findings are discussed through the dimensions of Project Success Framework (Shenhar et al. 2001 ) as themes to understand the factors behind DM’s failure. Moreover, the findings are analysed to provide lessons on how causalities such as the DM Project could be avoided.

Table 6 (Appendix) summarises each of the subject areas categorised as themes which were discussed during the interviews and the emerging sub-themes that arose upon the completion of the thematic analysis. These sub-themes are further elaborated in the next section to draw conclusions from the data collected. The coding scheme is divided into two Perspectives, as these were highlighted as important in the initial phase of the interviews and discussions: (a) the customer’s perspective and (b) the supplier’s perspective. The categorisation of the sub-themes is divided in theory-driven themes (from the Multi-dimensional Success Framework), assisting the analysis.

4.2.1 Project Efficiency

Before making any conclusion on the success/failure of a project, the multiple stakeholders should agree upon the assessment criteria. In our study, the participants believed that, while operational constraints form an essential criterion in measuring the project success, it is not sufficient to form the baseline from which the success could be measured. A common attribute found within this group of participants was that all of them had spent most of their career managing projects that are internal to their respective organisations. Project success can mean the same thing for all the parties involved is a common misconception within the Project Management world (Savolainen et al. 2012 ). The objective of the customer is to minimise the cost of the project delivery, whereas the aim of the suppler is to maximise the profit (Savolainen et al. 2015 ). Our findings coincide with the literature of IT Project Management stating the combination of criteria including meeting time, functionality, cost and quality as most common for the measurement of project success (Anda et al. 2009 ). However, in 2010, de Bakker et al. ( 2010 ) questioned these criteria arguing that using the aforementioned operational constraints could easily lead towards the misconception that an IT project has failed or vice-versa (de Bakker et al. 2010 ). The rationale provided here is that the defined initially requirements are bound to change as the project proceeds and, hence, almost an impossible task to provide an adequate estimation at the inception of the project (de Bakker et al. 2010 ). The operational estimates are often made prior to understanding the problem domain, and they are often flawed as they are made at the wrong time by the wrong people, leading to the conclusion that there is little to be concerned if a project does not meet the cost or schedule targets (Yang et al. 2011 ).

4.2.2 Impact on the Customer

All interviewees highlighted the importance of the impact on the customer and the overall customer satisfaction to be critical in determining project success. However, the rationale behind the importance of this success factor differed quite significantly between the Project Managers from the customer’s end to that of the supplier’s. Table 3 displays the benefits each party stands to gain by fulfilling the demands presented within this dimension.

However, the differences in customer perspectives are not studied in most of the literature on IT project success. In their study, Ahonen and Savolainen ( 2010 ) analysed a group of terminated IT project cases. In one of the cases, the supplier finished the project on time. However, once the system was implemented, the customer was not satisfied with the system yet paid the invoice in full nevertheless (Ahonen and Savolainen 2010 ; Savolainen et al. 2015 ). This project from the customer’s perspective was a failure, whereas, from the supplier’s perspective, the situation was not as transparent. The supplier did manage to deliver the project on time, within the budget, and as per the scope agreed with the customer and received the payment in full, yet the project failed to fulfil the business needs within the customer organisation (Savolainen et al. 2015 ).

British Standard for Project Management BS6079 (British Standard 2000 ) defined Project Management as the continuous planning; monitoring and control of a project; and the motivation of all those who are involved in it to achieve the objectives on time and to the specified cost, quality and performance. As per the Project Success Framework (Shenhar et al. 2001 ), three of the four success criteria are based on the post-implementation of the project and relies heavily on customer satisfaction.

Customer satisfaction in Project Management can be referred to as the degree to which the project meets or exceeds the expectations of the customer (Pinto and Mantel 1990 ). This includes the quality of the project deliverables, overall stakeholder experience, and the communication between internal and external stakeholders throughout the project lifecycle (Pinto 2013 ; Pinto and Slevin 1987 ). While these success criteria are critical for the overall success of the project, it is found to be compromised the most. As per Gartner’s 2018 IT Key Metrics Data report, 26% of the internal project participants felt that they have not adequately met the customer expectations, rating their perception of customer satisfaction as “expectations not met” or “somewhat disappointing” (Hall et al. 2017 ).

From the rationale mentioned above, one constant that is perhaps more transparent than the rest is the effort taken by these individuals to ensure the business relationships they have with their respective stakeholders are protected, and the trust that is bestowed upon them has adhered. Trust is the most important element of any business transaction in Japan. It is crucial to have a trustworthy and harmonic relationship between business partners (Pinto et al. 2009 ; Smyth et al. 2010 ).

One of the Key Performance Indicators within the FinTech Project Management industry in Japan is the number of post-implementation issues and problems addressed by the Production Support team. The measures mentioned above are in place to minimise such instances, but the handover documentation allows the maintenance teams to support the customers if an issue arises. However, The Impact on the customer is a dimension in which there is no uniformity in the time required to measure its success. Though usually it would be felt short-term, it varies based on the purpose and the type of the project, which channels towards the third dimension (“Business and Direct Success”).

4.2.3 Business and Direct Success

The time taken to experience business and direct success caused by a project depends on the nature of the project undertaken. From the responses received, five categories were identified and are summarised in Table 4 . The data presented in Table 4 diminish the ability to assess the success or the failure of a project following the implementation or the closedown process as there would not be sufficient time for the customer organisation to realise if the project did deliver the benefits as expected (Shenhar et al. 2001 ). Therefore, it is important to understand the difference between “project management success” and “project product success’.

Table 4 is developed based on theoretical and empirical research conducted by multiple researchers. Table 4 distilled a broad range of IT success measures into an integrated view of IS/IT success, as displayed above (DeLone and McLean 2003 ). While these two aspects are outside the scope of this project, it is safe to assume that Table 4 presents a strong argument that the efficiency of the Project Management processes would not guarantee that the resulting product or services developed would have the intended impact on the customer organisation. Therefore, it could be considered as a critical success factor to have a well laid out Benefit Review plan following the conclusion of the project to measure the overall success of the project and to involve the supplier parties in such assessments.

4.2.4 Preparing for the Future - Customer-Supplier Dynamics

This dimension addresses the problems surrounding the organisational and technological infrastructure for the future (Shenhar et al. 2001 ), and it was the most challenging to gather sufficient information for. The fact that supplier parties were not being involved in defining the business future of their customers is one of the key challenges faced while assessing the dimension. This was further highlighted during the analysis of the case study where it was revealed that the supplier’s side Project Manager had very little insight to the long-term benefits NTT DATA stood to gain from the DM project. This begs the questions that if and to what extent the supplier should be involved in refining the business strategy of a customer given the challenge that the benefits of this dimension could only be realised in the longer-term.

5 Implications

We contribute to the field of FinTech and IT project management by (i) exploring multi-dimensional the success factors (Shenhar et al. 2001 ) of FinTech applications adopted by non-financial organisations, (ii) illustrating the applicability of the multi-dimensional project success framework (Shenhar et al. 2001 ) in FinTech projects, and (iii) highlight the FinTech Project Management field as a rich area for future investigation. Our study discusses the different stakeholder perceptions of project success and failure and illustrates two contrasting perspectives Customer: failure vs supplier: not transparent) of success, instead of focusing only on the customer satisfaction side (Pinto and Mantel, 1990 ). We highlight the importance of the impact on the customer and the overall customer satisfaction in determining project success and underline the differences in customer perspectives with regard to impact and satisfaction. Furthermore, we offer a classification of projects and measures to assess their business and direct success, distinguishing between “project management success” and “project product success” and subsequently relating these to short/medium/long term impact. Therefore, we contribute to IT project management by looking at how organisations assimilate the project/system, support, execute or even revise their business strategy around the new technology in place (Choudrie and Dwivedi 2005 ; Dwivedi et al. 2013 ).

We illustrate the applicability of the Project Success Framework to assess the value (success) of FinTech projects based on IT project management (Matta and Ashkenas 2003 ; Shenhar et al. 2001 ). We argue that organisations can use this framework to assess their FinTech initiatives to check whether they have realised or will realise gains and business value from their adoption efforts (Mikalef et al. 2018 ). Nevertheless, this needs to look beyond the sole use of operational indicators as it could lead to incomplete and misleading assessments (Fosso Wamba et al. 2018 ; McNevin 2016 ; Schwabe 2016 ; Zavolokina et al. 2017 ). Therefore, the multiple stakeholders of such projects need to cooperate, collaborate, and create a synergy of necessary capabilities linked to strategic objectives and KPIs (Mikalef et al. 2019 ). This synergy will lead to project success, and the creation of a FinTech ecosystem (Diemers et al. 2015 ; Pappas et al. 2018 ; Tsujimoto et al. 2018 ) comprised and supported by the organisational actors, their generation of data, and their interactions and communications. This ecosystem would go beyond the mere use of IT, and therefore create value, as well as business and societal change.

From a practitioner perspective, as many companies have started already their FinTech journey, there is still lack of knowledge and skills with regard to, for instance, how rapidly can financial systems change for FinTech and how efficient this change can be, how participants in projects could better cooperate so as to minimise risks and maximise benefits and impact for the customer, how the project requirements can be monitored and regulatory requirements can be enforced and how success can be measured (Fosso Wamba et al. 2018 ). This study offers then, by applying the Project Success Framework (Shenhar et al. 2001 )lessons and/or guidelines per each of these dimensions to project and business managers who would like to engage in FinTech projects or assess the trajectory and current state of their FinTech projects.

6 Conclusion and Way Forward

This research was based on the paucity of the literature to assess the meaning and success of FinTech technologies. The multi-dimensional project success framework (Shenhar et al. 2001 ) provided a lens to assess the success of FinTech projects based on IT project management in the Japanese context. We illustrated the applicability of this framework in FinTech projects and discussed whether the assessment of such projects’ success is different from IT projects.

One of the limitations of the paper is the relatively small size that was used for the case study and interviews. Furthermore, our study is based on a single case in a particular context and therefore, the results cannot be generalised. However, the aim of the study is not statistical generalizability (Guba and Lincoln 1994 ; Lincoln and Guba 1990 ).On the contrary, we generalise from empirical statements to theoretical statements (A. S. Lee and Baskerville 2003 ), that is, what Yin ( 2009 ) suggests as generalising from case study findings to theory. We, therefore, inform theory as we provide an alternative view of a phenomenon and our results need to be judged depending on the plausibility of the reasoning used when analysing the findings and drawing conclusions from our data.

Further research could elaborate on the findings in multiple case studies, in a variety of FinTech Projects within Japan and other countries worldwide to verify and expand the findings of this study. Future research could focus on the impact of cultural aspects within the Project Management profession in the Japanese FinTech industry, or the use of Japanese inspired methods for agile development, such as Kanban (Cao et al. 2009 ; Polk 2011 ) or alternative approaches of systems development (Conboy 2009 ; Dennehy and Conboy 2017 , 2018 ; Nunamaker et al. 1990 ). The various perceptions of Success of FinTech projects should be further investigated in different levels (Project/Programme Managers) due to the presence of the customer-supplier dynamics and views on success, creating a conflict of interest

Accenture. (2016). Fintech and the evolving landscape: Landing points for the industry. Accenture .

Ahonen, J. J., & Savolainen, P. (2010). Software engineering projects may fail before they are started: Post-mortem analysis of five cancelled projects. Journal of Systems and Software., 83 , 2175–2187. https://doi.org/10.1016/j.jss.2010.06.023 .

Article   Google Scholar  

Anda, B., Hansen, K., & Sand, G. (2009). An investigation of use case quality in a large safety-critical software development project. Information and Software Technology., 51 , 1699–1711. https://doi.org/10.1016/j.infsof.2009.04.005 .

Arner, D. W., Barberis, J., & Buckley, R. P. (2017). FinTech, regTech, and the reconceptualisation of financial regulation. Northwestern Journal of International Law and Business .

Baskerville, R., Pawlowski, S., & McLean, E. (2000). Enterprise resource planning and organisational knowledge: Patterns of convergence and divergence. In Proceedings of the twenty first international conference on Information systems (pp. 396–406). Association for Information Systems.

Belanche, D., Casaló, L. V., & Flavián, C. (2019). Artificial intelligence in FinTech: Understanding robo-advisors adoption among customers. Industrial Management and Data Systems., 119 , 1411–1430. https://doi.org/10.1108/IMDS-08-2018-0368 .

Benbasat, I., Goldstein, D. K., & Mead, M. (1987). The case research strategy in studies of information systems. MIS Quarterly, 11 (3), 369–386.

Bhattacharya, P. J., & Seddon, P. B. (2011). Going beyond operations with Enterprise systems. ACIS 2011 Proceedings .

Bhattacharya, P. J., Seddon, P. B., & Scheepers, R. (2012). Enterprise systems for innovation in products and processes: Beyond operational efficiency. In ACIS 2012: Location, location, location: Proceedings of the 23rd Australasian Conference on Information Systems 2012 (pp. 1–11). ACIS.

Boyatzis, R. E. (1998). Transforming qualitative information: Thematic analysis and code development . Thousand Oaks: Sage Publications, Inc..

Google Scholar  

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3 (2), 77–101.

British Standard. (2000). Project management Ð Part 3 : Guide to the management of business related project risk Association of Project Managers. Bsi .

Burtch, G., Ghose, A., & Wattal, S. (2013). An empirical examination of the antecedents and consequences of contribution patterns in crowd-funded markets. Information Systems Research, 24 (3), 499–519.

Burtch, G., Ghose, A., & Wattal, S. (2014). Cultural differences and geography as determinants of online prosocial lending. Mis Quarterly, 38 (3), 773–794.

Cao, L., Mohan, K., Xu, P., & Ramesh, B. (2009). A framework for adapting agile development methodologies. European Journal of Information Systems., 18 , 332–343. https://doi.org/10.1057/ejis.2009.26 .

Chen, M. A., Wu, Q., & Yang, B. (2019). How valuable is FinTech innovation? Review of Financial Studies., 32 , 2062–2106. https://doi.org/10.1093/rfs/hhy130 .

Choudrie, J., & Dwivedi, Y. K. (2005). Investigating the research approaches for examining technology adoption issues. Journal of Research Practice, 1 (1), 1.

Conboy, K. (2009). Agility from first principles: Reconstructing the concept of agility in information systems development. Information Systems Research., 20 , 329–354. https://doi.org/10.1287/isre.1090.0236 .

Dalcher, D. (2012). The nature of project management: A reflection on the anatomy of major projects by Morris and Hough. International Journal of Managing Projects in Business., 5 , 643–660. https://doi.org/10.1108/17538371211268960 .

Dalcher, D. (2015). Going beyond the Waterfall: Managing Scope Effectively Across the Project Life Cycle. Project Management Journal . https://doi.org/10.1002/pmj.21475 .

Davenport, T. H. (1998). Putting the enterprise into the enterprise system. Harvard Bus.Rev., 76 (4), 121–131 http://dl.acm.org/citation.cfm?id=280994.280995 .

Davenport, T. H. (2000). Mission critical : Realising the promise of enterprise systems . Boston: Harvard Business School Press.

Davenport, T. H., Harris, J. G., & Cantrell, S. (2004). Enterprise systems and ongoing process change. Business Process Management Journal, 10 (1), 16–26. https://doi.org/10.1108/14637150410518301 .

de Bakker, K., Boonstra, A., & Wortmann, H. (2010). Does risk management contribute to IT project success? A meta-analysis of empirical evidence. International Journal of Project Management, 28 , 493–503. https://doi.org/10.1016/j.ijproman.2009.07.002 .

DeLone, W. H., & McLean, E. R. (2003). The DeLone and McLean model of information systems success: A ten-year update. In Journal of Management Information Systems (Vol. 19, pp. 9–30). https://doi.org/10.1080/07421222.2003.11045748 .

DeLone, W. H., & McLean, E. R. (1992). Information systems success: The quest for the dependent variable. Information Systems Research, 3 (1), 60–95.

Dennehy, D., & Conboy, K. (2017). Going with the flow: An activity theory analysis of flow techniques in software development. Journal of Systems and Software., 133 , 160–173. https://doi.org/10.1016/j.jss.2016.10.003 .

Dennehy, D., & Conboy, K. (2018). Identifying challenges and a research agenda for flow in software Project Management. Project Management Journal., 49 , 103–118. https://doi.org/10.1177/8756972818800559 .

De Reuver, M., Verschuur, E., Nikayin, F., Cerpa, N., & Bouwman, H. (2015). Collective action for mobile payment platforms: A case study on collaboration issues between banks and telecom operators. Electronic Commerce Research and Applications, 14 (5), 331–344.

Diemers, D., Lamaa, A., Salamat, J., & Steffens, T. (2015). Developing a FinTech ecosystem in the GCC: let's get ready for take off. Strategy& . https://www.strategyand.pwc.com/m1/en/reports/2015/developing-fintech-ecosystem-gcc.html . Accessed 28 June 2020.

Dwivedi, Y. K., Ramdani, B., Williams, M. D., Mitra, A., Sukumar, R., & Williams, J. (2013). Factors contributing to successful ERP implementation in locally–owned and multinational firms in India. International Journal of Indian Culture and Business Management, 6 (4), 458–476.

Dwivedi, Y. K., Wastell, D., Laumer, S., Henriksen, H. Z., Myers, M. D., Bunker, D., Elbanna, A., Ravishankar, M. N., & Srivastava, S. C. (2014). Research on information systems failures and successes: Status update and future directions. Information Systems Frontiers., 17 , 143–157. https://doi.org/10.1007/s10796-014-9500-y .

Eisenhardt, K. M. (1989). Building theories from case study research. The Academy of Management Review., 14 , 532. https://doi.org/10.2307/258557 .

Engelbrecht, A., Gerlach, J. P., Benlian, A., & Buxmann, P. (2017). Analysing employees' willingness to disclose information in enterprise social networks: The role of organisational culture. In Proceedings of the 25th European Conference on Information Systems, ECIS 2017 .

Fosso Wamba, S., Kala Kamdjoug, J. R., Bawack, R., & G. Keogh, J. (2018). Bitcoin, Blockchain, and FinTech: A systematic review and case studies in the supply chain. Production Planning and Control.

Foster, C., & Heeks, R. (2013). Innovation and scaling of ICT for the bottom-of-the-pyramid. Journal of Information Technology, 28 (4), 296–315.

Gingnell, L., Franke, U., Lagerström, R., Ericsson, E., & Lilliesköld, J. (2014). Quantifying success factors for IT projects-an expert-based Bayesian model. Information Systems Management., 31 , 21–36. https://doi.org/10.1080/10580530.2014.854033 .

Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the Fintech Revolution: Interpreting the Forces of Innovation, Disruption, and Transformation in Financial Services. Journal of Management Information Systems . https://doi.org/10.1080/07421222.2018.1440766 .

Gozman, D., Liebenau, J., & Mangan, J. (2018). The innovation mechanisms of Fintech Start-Ups: Insights from SWIFT's Innotribe Competition. Journal of Management Information Systems . https://doi.org/10.1080/07421222.2018.1440768 .

Guba, E. G., & Lincoln, Y. S. (1994). Competing paradigms in qualitative research. In Handbook of qualitative research .

Hall, L., Stegman, E., Futela, S., & Gupta, D. (2017). IT key metrics data 2018: Key industry measures: Banking and financial services analysis: Current year. Gartner Research Report .

Hung, J. L., & Luo, B. (2016). FinTech in Taiwan: A case study of a Bank's strategic planning for an investment in a FinTech company. Financial Innovation., 2 . https://doi.org/10.1186/s40854-016-0037-6 .

Jones, S., Irani, Z., Sivarajah, U., & Love, P. E. D. (2019). Risks and rewards of cloud computing in the UK public sector: A reflection on three Organisational case studies. Information Systems Frontiers., 21 , 359–382. https://doi.org/10.1007/s10796-017-9756-0 .

Khare, A., Ishikura, H., & Baber, W. W. (Eds.). (2019). Transforming japanese business: rising to the digital challenge. Springer Nature.

Kavuri, A. S., & Milne, A. K. L. (2019). Fintech and the future of financial services: What are the research gaps? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3333515 .

KPMG. (2018). The pulse of Fintech 2018. Kpmg .

Lee, A. S., & Baskerville, R. L. (2003). Generalising generalizability in information systems research. Information Systems Research., 14 , 221–243. https://doi.org/10.1287/isre.14.3.221.16560 .

Lee, A. S., & Liebenau, J. (2013). Information systems and qualitative research. In Information Systems and Qualitative Research . https://doi.org/10.1007/978-0-387-35309-8_1 .

Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons., 61 , 35–46. https://doi.org/10.1016/j.bushor.2017.09.003 .

Lee, S. M., & Lee, S.-H. (2012). Success factors of open-source enterprise information systems development. Industrial Management and Data Systems, 112 (7), 1065–1084. https://doi.org/10.1108/02635571211255023 .

Leong, K. (2018). FinTech (financial technology): What is it and how to use technologies to create business value in Fintech way? International Journal of Innovation, Management and Technology . https://doi.org/10.18178/ijimt.2018.9.2.791 .

Lincoln, Y. S., & Guba, E. G. (1990). Judging the quality of case study reports. Internation Journal of Qualitative Studies in Education, 3 (1), 53–59.

Marchewka, J. (2009). Information technology project management. In Information technology project management .

Marikyan, D., Papagiannidis, S., & Alamanos, E. (2020). Cognitive dissonance in technology Adoption: A Study of Smart Home Users. Information Systems Frontiers . https://doi.org/10.1007/s10796-020-10042-3 .

Matta, N. F., & Ashkenas, R. N. (2003). Why good projects fail anyway. Harvard Business Review.

McNevin, A. (2016). What is "Fintech." Computer Business Review .

Mikalef, P., Boura, M., Lekakos, G., & Krogstie, J. (2019). Configurations of big data analytics for firm performance: An fsQCA approach. In 25th Americas Conference on Information Systems, AMCIS 2019 .

Mikalef, P., Pappas, I. O., Krogstie, J., & Giannakos, M. (2018). Big data analytics capabilities: A systematic literature review and research agenda. Information Systems and e-Business Management., 16 , 547–578. https://doi.org/10.1007/s10257-017-0362-y .

Mikalef, P., Pappas, I. O., Krogstie, J., & Pavlou, P. A. (2020). Big data and business analytics: A research agenda for realising business value. Information and Management., 57 , 103237. https://doi.org/10.1016/j.im.2019.103237 .

Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: an expanded sourcebook (2nd ed.). Thousand Oaks ; London: Sage.

Mori, T. (2016). Financial technology: Blockchain and securities settlement. Journal of Securities Operations & Custody Taketoshi Mori Journal of Securities Operations & Custody., 71 , 308–314. https://doi.org/10.1016/j.pec.2007.11.025 .

Nakaso, H. (2016). FinTech – Its impacts on finance , Economies and Central Banking. Bank of Japan.

Nunamaker, J. F., Chen, M., & Purdin, T. D. M. (1990). Systems development in information systems research. Journal of Management Information Systems., 7 , 89–106. https://doi.org/10.1080/07421222.1990.11517898 .

Orlikowski, W. J., & Baroudi, J. J. (1991). Studying information technology in organisations: Research approaches and assumptions. Information Systems Research, 2 , 1–28.

Pan, S. L., & Tan, B. (2011). Demystifying case research: A structured-pragmatic-situational (SPS) approach to conducting case studies. Information and Organization., 21 , 161–176. https://doi.org/10.1016/j.infoandorg.2011.07.001 .

Papazafeiropoulou, A., & Spanaki, K. (2016). Understanding governance, risk and compliance information systems (GRC IS): The experts view. Information Systems Frontiers, 18 (6), 1251–1263. https://doi.org/10.1007/s10796-015-9572-3 .

Pappas, I. O., Mikalef, P., Giannakos, M. N., Krogstie, J., & Lekakos, G. (2018). Big data and business analytics ecosystems: Paving the way towards digital transformation and sustainable societies. Information Systems and e-Business Management., 16 , 479–491. https://doi.org/10.1007/s10257-018-0377-z .

Patton, M. Q. (2002). Designing qualitative studies. Qualitative research and evaluation methods, 3 , 230–246.

Petter, S., DeLone, W., & McLean, E. R. (2012). The past, present, and future of “IS success”. Journal of the Association for Information Systems, 13 (5), 341–362.

Pettigrew, A. M. (1990). Longitudinal field research on Change: Theory and Practice. Organization Science . https://doi.org/10.1287/orsc.1.3.267 .

Pinto, J. K. (2013). Lies, damned lies, and project plans: Recurring human errors that can ruin the project planning process. Business Horizons., 56 , 643–653. https://doi.org/10.1016/j.bushor.2013.05.006 .

Pinto, J. K., & Mantel, S. J. (1990). The causes of project failure. IEEE Transactions on Engineering Management., 37 , 269–276. https://doi.org/10.1109/17.62322 .

Pinto, J. K., & Slevin, D. P. (1987). Critical factors in successful project implementation. IEEE Transactions on Engineering Management., EM-34 , 22–27. https://doi.org/10.1109/TEM.1987.6498856 .

Pinto, J. K., Slevin, D. P., & English, B. (2009). Trust in projects: An empirical assessment of owner/contractor relationships. International Journal of Project Management., 27 , 638–648. https://doi.org/10.1016/j.ijproman.2008.09.010 .

Polk, R. (2011). Agile & Kanban in coordination. In Proceedings - 2011 Agile Conference , Agile 2011 . https://doi.org/10.1109/AGILE.2011.10 .

Pollari, I. (2016). The rise of Fintech opportunities and challenges. JASSA .

Ryu, H.-S. (2018). Understanding benefit and risk framework of Fintech adoption: Comparison of early adopters and late adopters. In Proceedings of the 51st Hawaii International Conference on System Sciences . https://doi.org/10.24251/hicss.2018.486 .

Savolainen, P., Ahonen, J. J., & Richardson, I. (2012). Software development project success and failure from the supplier's perspective: A systematic literature review. International Journal of Project Management., 30 , 458–469. https://doi.org/10.1016/j.ijproman.2011.07.002 .

Savolainen, P., Ahonen, J. J., & Richardson, I. (2015). When did your project start? - the software supplier's perspective. Journal of Systems and Software., 104 , 32–40. https://doi.org/10.1016/j.jss.2015.02.041 .

Schwabe, G. (2016). FinTech – What' s in a name ? International Conference on Information Systems .

Scott, J. E., & Vessey, I. (2000). Implementing Enterprise resource planning Systems: The Role of Learning from Failure. Information Systems Frontiers, 2 , 213–232. https://doi.org/10.1023/A:1026504325010 .

Seddon, P. B. (1997). A respecification and extension of the DeLone and McLean model of IS success. Information Systems Research, 8 (3), 240–253. https://doi.org/10.1287/isre.8.3.240 .

Shenhar, A. J., Dvir, D., Levy, O., & Maltz, A. C. (2001). Project success: A multi-dimensional strategic concept. Long Range Planning., 34 , 699–725. https://doi.org/10.1016/S0024-6301(01)00097-8 .

Siggelkow, N. (2007). Persuasion with case studies. Academy of Management Journal, 50 (1), 20–24.

Smyth, H., Gustafsson, M., & Ganskau, E. (2010). The value of trust in project business. International Journal of Project Management., 28 , 117–129. https://doi.org/10.1016/j.ijproman.2009.11.007 .

Standish Group. (2015). CHAOS report 2015. The Standish Group International , Inc .

Suri, H. (2011). Purposeful sampling in qualitative research synthesis. Qualitative Research Journal, 11 (2), 63–75.

Suri, H., & Clarke, D. (2009). Advancements in research synthesis methods: From a methodologically inclusive perspective. Review of Educational Research, 79 (1), 395–430.

Suzuki, Y., & Ochiai, T. (2017). Japan's fintech strategy a work in progress. International Financial Law Review .

Tan, C.-W., & Pan, S. (2002). ERP success: The search for a comprehensive framework.

Tsujimoto, M., Kajikawa, Y., Tomita, J., & Matsumoto, Y. (2018). A review of the ecosystem concept — Towards coherent ecosystem design. Technological Forecasting and Social Change, 136 , 49–58. https://doi.org/10.1016/j.techfore.2017.06.032 .

Winkler, J. K., Dibbern, J., & Heinzl, A. (2008). The impact of cultural differences in offshore outsourcing-case study results from German-Indian application development projects. Information Systems Frontiers., 10 , 243–258. https://doi.org/10.1007/s10796-008-9068-5 .

Yang, L. R., Huang, C. F., & Wu, K. S. (2011). The association among project manager's leadership style, teamwork and project success. International Journal of Project Management., 29 , 258–267. https://doi.org/10.1016/j.ijproman.2010.03.006 .

Yin, R. K. (2009). Case study research: Design and methods (4th ed., Vol. 5). London: Sage.

Zavolokina, L., Dolata, M., & Schwabe, G. (2017). FinTech transformation: How IT-enabled innovations shape the financial sector. In Lecture Notes in Business Information Processing . https://doi.org/10.1007/978-3-319-52764-2_6 .

Zhou, M. J., Lu, B., Fan, W. P., & Wang, G. A. (2018). Project description and crowdfunding success: An exploratory study. Information Systems Frontiers., 20 , 259–274. https://doi.org/10.1007/s10796-016-9723-1 .

Download references

Author information

Authors and affiliations.

School of Business and Economics, Loughborough University, Loughborough, Leicestershire, LE11 3TU, UK

Dakshitha N. Jinasena & Konstantina Spanaki

Kent Business School, University of Kent, Sail and Colour Loft, the Historic Dockyard, Chatham, Kent, ME4 4TE, UK

Thanos Papadopoulos

Kent Business School, University of Kent, Canterbury, Kent, CT2 7FS, UK

Maria E. Balta

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Konstantina Spanaki .

Additional information

Publisher’s note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ .

Reprints and permissions

About this article

Jinasena, D.N., Spanaki, K., Papadopoulos, T. et al. Success and Failure Retrospectives of FinTech Projects: A Case Study Approach. Inf Syst Front 25 , 259–274 (2023). https://doi.org/10.1007/s10796-020-10079-4

Download citation

Accepted : 13 October 2020

Published : 22 October 2020

Issue Date : February 2023

DOI : https://doi.org/10.1007/s10796-020-10079-4

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• IT Project Management
• Success factors
• Project success

Advertisement

• Find a journal
• Publish with us
• Track your research

Discover the Future of Finance: Top Fintech Case Studies with Questions and Answers

In a rapidly evolving financial landscape, staying ahead of the curve means understanding the innovations shaping the future of finance. Dive into the exciting world of financial technology ( Fintech ) with our curated collection of top Fintech case studies and expert Q&A. These real-life success stories offer a glimpse into how innovative Fintech solutions are revolutionizing the industry. Whether you’re a Fintech enthusiast or a finance professional looking to adapt to the changing times, these case studies provide valuable insights. Paired with expertly crafted questions and answers, you’ll not only gain a deeper understanding of these transformative technologies but also discover how to leverage them for success in your own financial endeavors. Join us on this journey to explore the future of finance and unlock opportunities that lie ahead.

Domain 1 – Market Size, Growth and Segmentation

Market size refers to the total value of a specific market, represented in terms of the monetary transactions or revenue generated within a defined period. Market growth pertains to the rate at which the market’s total value is expanding over time. It is usually expressed as a percentage increase. Market segmentation involves dividing a broader market into distinct subgroups or segments based on specific characteristics, such as demographics, behaviors, or needs.

Question: In a case study involving a fintech startup, what does “Market Size” refer to?

A) The number of employees working in the company

B) The total available market that the fintech innovation can potentially serve

C) The revenue generated by the fintech company in the first year

D) The number of competitors in the fintech space

Correct Answer: Correct answer is B.

Explanation: Market size in this context represents the total available market that the fintech innovation can potentially serve, which is crucial for assessing its growth potential.

Question: A fintech case study shows a Compound Annual Growth Rate (CAGR) of 25% over the past three years. What does this indicate?

A) The fintech innovation is in a declining market.

B) The fintech company experienced consistent, positive growth.

C) The fintech market is highly volatile.

D) The fintech innovation is too new to draw conclusions.

Explanation: A CAGR of 25% over three years indicates consistent, positive growth in the fintech company’s performance.

Question: When analyzing market segmentation in a fintech case study, why is it important to identify the “target customer personas”?

A) To determine the number of competitors in the market

B) To understand the specific needs and preferences of potential customers

C) To calculate the fintech company’s revenue

D) To assess the regulatory compliance of the fintech innovation

Explanation: Identifying target customer personas helps understand the specific needs and preferences of potential customers, which is crucial for tailoring the fintech innovation and marketing strategies.

Question: In a fintech case study, what role does regulatory compliance play in market segmentation?

A) It defines the fintech company’s organizational structure.

B) It helps identify the geographic regions where the fintech innovation can be launched.

C) It determines the pricing strategy of the fintech product.

D) It has no relevance to market segmentation.

Explanation: Regulatory compliance influences where and how a fintech innovation can be launched, making it a relevant factor in market segmentation.

Question: Why is a SWOT analysis important when evaluating a fintech innovation in a case study?

A) To forecast future market trends

B) To assess the profitability of the fintech company

C) To identify the fintech company’s strengths, weaknesses, opportunities, and threats

D) To calculate the market share of the fintech innovation

Correct Answer: Correct answer is C.

Explanation: A SWOT analysis is used to identify the fintech company’s internal strengths and weaknesses, along with external opportunities and threats in the market, providing valuable insights for decision-making.

Domain 2 – Competitor Analysis and Barriers to Entry

Competitor analysis is the process of evaluating and studying the strengths and weaknesses of existing and potential competitors in a specific industry or market. Barriers to entry are obstacles or factors that make it difficult for new companies to enter and compete in a specific industry or market.

Question: In a fintech case study, why is it crucial to conduct a competitor analysis?

A) To determine the company’s stock market performance

B) To identify potential partners for collaboration

C) To assess the strengths and weaknesses of existing and potential competitors

D) To calculate the company’s annual revenue

Explanation: Conducting a competitor analysis is important to assess the strengths and weaknesses of existing and potential competitors, helping the fintech company understand its competitive landscape.

Question: What is a common barrier to entry in the fintech industry?

A) High customer demand

B) Low regulatory requirements

C) Access to a network of financial institutions

D) Abundant venture capital funding

Explanation: Access to a network of financial institutions can be a significant barrier to entry in the fintech industry as it often requires trust, relationships, and industry knowledge.

Question: In a fintech case study, if you find that a new startup faces low barriers to entry, what does this suggest about the competitive landscape?

A) The market is oversaturated with established competitors.

B) The market is highly regulated.

C) The startup is likely to succeed.

D) The startup will face no competition.

Correct Answer: Correct answer is A.

Explanation: Low barriers to entry suggest that the market may be oversaturated with established competitors, making it challenging for a new startup to gain a foothold.

Question: Which of the following is NOT typically considered a barrier to entry in the fintech industry?

A) High capital requirements

B) Strong brand recognition

C) Access to proprietary technology

D) Low customer demand

Correct Answer: Correct answer is D.

Explanation: Low customer demand is not a typical barrier to entry. Barriers usually involve factors like capital, technology, regulations, and competitive landscape.

Question: When evaluating barriers to entry in a fintech case study, why is regulatory compliance an important factor?

A) It determines the company’s marketing strategy.

B) It affects the pricing of fintech products.

C) It can create obstacles for new entrants and shape the competitive landscape.

D) It has no relevance to barriers to entry.

Explanation: Regulatory compliance can create obstacles for new entrants in the fintech industry and shape the competitive landscape by influencing who can enter the market and how.

Domain 3 – Unique Selling Proposition (USP)

A Unique Selling Proposition (USP), also known as a Unique Selling Point, is a distinctive and compelling feature or characteristic that sets a product, service, or brand apart from its competitors in the eyes of customers. It is a specific and clear statement that communicates what makes a product or offering unique and why it is superior or more desirable compared to alternatives.

Question: In a fintech case study, what is a Unique Selling Proposition (USP)?

A) The legal framework that governs the fintech innovation

B) The core technology stack used by the fintech company

C) The distinctive feature or advantage that sets the fintech product apart from competitors

D) The annual revenue generated by the fintech company

Explanation: A Unique Selling Proposition (USP) is the distinctive feature or advantage that sets the fintech product apart from competitors, making it unique and appealing to customers.

Question: Why is it important for a fintech company to identify and articulate its USP?

A) To comply with industry regulations

B) To impress potential investors

C) To effectively communicate the value of the product to customers and differentiate from competitors

D) To increase the number of employees in the company

Explanation: Identifying and articulating the USP helps a fintech company effectively communicate the value of its product to customers and stand out in a competitive market.

Question: In a fintech case study, if the USP of a product is “real-time data analytics,” what does this imply about the product’s competitive advantage?

A) The product offers the lowest pricing in the market.

B) The product provides insights based on historical data.

C) The product can analyze data faster and more effectively than competitors.

D) The product is only available during specific hours of the day.

Explanation: If the USP is “real-time data analytics,” it implies that the product can analyze data faster and more effectively than competitors, giving it a competitive advantage.

Question: Which of the following is NOT a potential element of a fintech USP?

A) Security features

B) User interface design

C) Regulatory compliance

D) Employee diversity

Explanation: Employee diversity is not typically a direct element of a fintech USP. USPs typically focus on product features, security, design, and compliance.

Question: In a fintech case study, how can a company validate the effectiveness of its USP?

A) By conducting market research and customer surveys

B) By increasing its advertising budget

C) By acquiring more competitors

D) By hiring additional sales representatives

Explanation: To validate the effectiveness of its USP, a fintech company can conduct market research and customer surveys to gather feedback and insights from its target audience.

Domain 4 – Monetization and Pricing Strategy

Monetization refers to the process of generating revenue or profit from a product, service, content, or asset. It involves converting something of value into actual income. Pricing strategy is a deliberate approach that a business takes to set the price of its products or services. It involves considering various factors to determine the optimal price point that will maximize revenue and profitability.

Question: In a fintech case study, what is meant by “Monetization”?

A) The process of transforming financial data into insights

B) The strategy for generating revenue from a fintech product or service

C) The method used to secure venture capital funding

D) The marketing campaign aimed at attracting new customers

Explanation: Monetization refers to the strategy for generating revenue from a fintech product or service, which is a critical aspect of the business model.

Question: Why is it important for a fintech company to carefully consider its pricing strategy?

A) To ensure the product remains free for all users

B) To maximize profits while remaining competitive and attractive to customers

C) To lower operational costs for the company

Explanation: A well-thought-out pricing strategy allows a fintech company to maximize profits while remaining competitive and attractive to customers, balancing revenue and market position.

Question: In a fintech case study, what might be an advantage of adopting a subscription-based pricing model?

A) It allows customers to use the product for free.

B) It provides a predictable and recurring stream of revenue.

C) It relies on one-time purchases for revenue.

D) It encourages customers to buy additional products.

Explanation: A subscription-based pricing model provides a predictable and recurring stream of revenue, which can be advantageous for long-term financial stability.

Question: What is the primary goal of a freemium pricing strategy in fintech?

A) To maximize revenue from the outset

B) To offer a free trial period before charging customers

C) To attract a large user base with a free version and upsell premium features

D) To minimize customer acquisition costs

Explanation: The primary goal of a freemium pricing strategy is to attract a large user base with a free version of the product and then upsell premium features to some of those users, maximizing revenue.

Question: How can a fintech company determine the optimal pricing strategy for its product or service?

A) By setting the highest possible price to maximize profits

B) By copying the pricing strategy of its competitors

C) Through market research, competitive analysis, and considering customer value

D) By offering discounts and promotions continuously

Explanation: The optimal pricing strategy is determined through market research, competitive analysis, and consideration of the perceived customer value to strike a balance between profitability and market competitiveness.

Domain 5 – Compliance Challenges 

Compliance challenges refer to the difficulties, issues, or obstacles that organizations encounter while striving to adhere to regulatory requirements and legal standards within their industry or jurisdiction. These challenges can vary significantly depending on the nature of the business, its geographical location, and the specific regulations that apply.

Question: In a fintech case study, what does “Compliance Challenges” refer to?

A) The competition faced by the fintech company

B) The legal and regulatory hurdles that the fintech innovation must navigate

C) The financial stability of the fintech company

D) The marketing strategy employed by the fintech company

Explanation: Compliance challenges in a fintech case study refer to the legal and regulatory hurdles that the fintech innovation must navigate, which can impact its operations.

Question: Why is compliance a critical consideration for fintech companies?

A) To maximize profits

B) To minimize competition

C) To ensure they operate within the boundaries of the law and avoid legal penalties

D) To attract venture capital funding

Explanation: Compliance is critical for fintech companies to ensure they operate within the boundaries of the law and avoid legal penalties, which can be costly and damaging to their reputation.

Question: In a fintech case study, if a company is facing challenges related to Know Your Customer (KYC) regulations, what is the likely impact on its operations?

A) Faster onboarding of new customers

B) Improved customer satisfaction

C) Delays in customer verification and onboarding processes

D) Increased profitability

Explanation: Challenges related to KYC regulations can result in delays in customer verification and onboarding processes, impacting the company’s operational efficiency.

Question: Which of the following is NOT a common compliance challenge in fintech?

A) Data security and privacy regulations

B) Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements

C) Customer loyalty program implementation

D) Regulatory reporting obligations

Explanation: Customer loyalty program implementation is not typically a compliance challenge, while the other options involve significant regulatory considerations.

Question: In a fintech case study, how can a company effectively address compliance challenges?

A) By ignoring regulations to focus on growth

B) By lobbying for changes in the regulatory environment

C) By hiring a compliance officer and implementing robust compliance processes

D) By partnering with competitors to share compliance responsibilities

Explanation: To effectively address compliance challenges, a fintech company should hire a compliance officer and implement robust compliance processes to ensure adherence to regulations.

Domain 6 – Legal Framework

A legal framework refers to the structure of laws, regulations, rules, and principles established by a government or authority to govern and regulate various aspects of society, including individual behavior, business practices, and the functioning of institutions. This framework serves as the foundation for maintaining order, resolving disputes, and upholding justice within a particular jurisdiction. 

Question: In a fintech case study, what does “Legal Framework” refer to?

A) The company’s organizational structure

B) The set of laws and regulations that govern the fintech industry and its operations

C) The fintech company’s financial statements

Explanation: Legal Framework in a fintech case study refers to the set of laws and regulations that govern the fintech industry and its operations, which have a significant impact on compliance.

Question: Why is a comprehensive understanding of the legal framework crucial for fintech companies?

C) To ensure compliance with regulations and avoid legal risks

Explanation: A comprehensive understanding of the legal framework is crucial for fintech companies to ensure compliance with regulations and avoid legal risks, which can be detrimental to their operations.

Question: In a fintech case study, if a company is dealing with cross-border transactions, which legal aspect should they pay particular attention to?

A) Tax regulations

B) Employee benefits

C) Intellectual property rights

D) Labor laws

Explanation: When dealing with cross-border transactions, fintech companies should pay particular attention to tax regulations, as these can vary significantly from one jurisdiction to another.

Question: Which of the following is NOT a common legal challenge in the fintech industry?

A) Data protection and privacy regulations

B) Intellectual property protection

C) Regulatory compliance for operating hours

D) Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements

Explanation: Regulatory compliance for operating hours is not a common legal challenge in the fintech industry, while the other options involve significant legal considerations.

Question: In a fintech case study, what can a company do to proactively address legal challenges and ensure compliance?

A) Ignore legal issues and focus on growth

B) Seek legal counsel, conduct regular audits, and stay updated on regulatory changes

C) Compete aggressively with other fintech firms

D) Lobby for changes in the legal framework

Explanation: To proactively

address legal challenges and ensure compliance, a fintech company should seek legal counsel, conduct regular audits, and stay updated on regulatory changes to adapt as needed.

Domain 7 – Security, Data Privacy and Operational Risks in Fintech Case Studies

Security in fintech refers to the measures and practices implemented to protect financial systems, data, and transactions from various threats and vulnerabilities. Data privacy focuses on the protection of personal and financial data collected from customers. Operational risks refer to potential disruptions, losses, or failures in day-to-day operations due to various factors, including human error, technological glitches, regulatory compliance issues, or external events.

Question: In a fintech case study, what does

“Security” primarily refer to?

A) Ensuring high profits for the fintech company

B) Protecting customer data and systems from unauthorized access and cyber threats

C) Increasing the number of employees in the company

D) Complying with regulatory requirements

Explanation: Security in a fintech case study primarily refers to protecting customer data and systems from unauthorized access and cyber threats, which is crucial for trust and compliance.

Question: Why is data privacy a critical consideration for fintech companies?

B) To comply with marketing regulations

C) To protect customer information and maintain trust

Explanation: Data privacy is a critical consideration for fintech companies to protect customer information and maintain trust, as breaches can have severe consequences.

Question: In a fintech case study, what might be an example of an operational risk?

A) Market competition

B) A cybersecurity breach leading to customer data exposure

C) A favorable change in regulatory policies

D) An increase in employee salaries

Explanation: A cybersecurity breach that exposes customer data is an example of an operational risk, as it can disrupt operations and harm the company’s reputation.

Question: Which of the following is NOT a typical security measure used by fintech companies?

A) Multi-factor authentication (MFA)

B) Regular software updates and patches

C) Publicly sharing sensitive customer data

D) Data encryption

Explanation: Fintech companies typically do not publicly share sensitive customer data; they use security measures like MFA, software updates, and data encryption to protect it.

Question: In a fintech case study, how can a company proactively mitigate operational risks?

A) By ignoring operational risks to focus on growth

B) By investing in staff training and disaster recovery planning

C) By hiring external consultants to handle operational risks

D) By increasing advertising spending

Explanation: A fintech company can proactively mitigate operational risks by investing in staff training and disaster recovery planning to ensure preparedness for unforeseen challenges.

Domain 8 – Customer Acquisition Strategy in Fintech Case Studies

A Customer Acquisition Strategy is a structured and deliberate plan that a business or organization develops to attract and gain new customers or clients. This strategy outlines the methods, tactics, and channels to be employed in order to identify, reach, and convert potential customers into paying clients. The primary objectives of a customer acquisition strategy are to expand the customer base, increase revenue, and grow the business.

Question: In a fintech case study, what does “Customer Acquisition Strategy” primarily focus on?

A) Maximizing profits from existing customers

B) Identifying potential competitors in the market

C) Attracting and retaining new customers for the fintech product or service

D) Compliance with regulatory requirements

Explanation: Customer Acquisition Strategy primarily focuses on attracting and retaining new customers for the fintech product or service, which is essential for growth.

Question: Why is it crucial for fintech companies to have an effective customer acquisition strategy?

A) To increase the number of employees in the company

B) To compete aggressively with other fintech firms

C) To minimize operational costs

D) To sustain growth and profitability by expanding their customer base

Explanation: An effective customer acquisition strategy is crucial for fintech companies to sustain growth and profitability by expanding their customer base and increasing revenue.

Question: In a fintech case study, what might be an example of a customer acquisition channel?

A) The company’s employee training program

B) A partnership with a popular financial institution

C) The company’s financial performance reports

D) The design of the company’s logo

Explanation: A partnership with a popular financial institution can be considered a customer acquisition channel, as it can help bring in new customers.

Question: Which of the following is NOT a common customer retention strategy used by fintech companies?

A) Offering personalized financial advice and recommendations

B) Implementing loyalty programs and rewards for existing customers

C) Frequently changing the user interface and design of the fintech product

D) Providing excellent customer support

Explanation: Frequently changing the user interface and design of the fintech product can disrupt the user experience and is not a common customer retention strategy.

Question: In a fintech case study, how can a company measure the effectiveness of its customer acquisition strategy?

A) By tracking the number of employees in the company

B) By analyzing customer feedback and retention rates

C) By increasing advertising spending

D) By offering discounts to all customers

Explanation: The effectiveness of a customer acquisition strategy can be measured by analyzing customer feedback and retention rates, which indicate how well it attracts and keeps customers.

Domain 9 – Customer Lifetime Value (CLV) in Fintech Case Studies

Customer Lifetime Value (CLV), also known as Customer LTV, is a crucial metric in marketing and business that represents the estimated total revenue a business can expect to earn from a single customer over the entire duration of their relationship. CLV helps businesses understand the long-term value of their customers and guides decisions related to marketing, customer acquisition, and retention strategies.

Question: In a fintech case study, what does “Customer Lifetime Value (CLV)” represent?

A) The total number of customers acquired by the fintech company

B) The total revenue generated by the fintech company in a specific time frame

C) The predicted net profit a customer will bring to the company over their entire relationship

D) The number of customer support tickets raised by customers

Explanation: Customer Lifetime Value (CLV) represents the predicted net profit a customer will bring to the company over their entire relationship, making it a valuable metric for assessing customer worth.

Question: Why is CLV important for fintech companies?

A) To measure the total market size

B) To assess the number of competitors in the industry

C) To understand the long-term profitability of acquiring and retaining customers

D) To determine the company’s stock market performance

Explanation: CLV is important for fintech companies because it helps them understand the long-term profitability of acquiring and retaining customers, which informs business strategies.

Question: In a fintech case study, if a company has a high CLV, what does this indicate?

A) The company has a large customer base.

B) The company is experiencing financial losses.

C) Customers generate significant revenue over their relationship with the company.

D) The company has low customer retention rates.

Explanation: A high CLV indicates that customers generate significant revenue over their relationship with the company, which can be a positive sign of profitability.

Question: What can a fintech company do to increase CLV?

A) Focus solely on acquiring new customers

B) Reduce the quality of customer service

C) Offer additional products or services to existing customers

D) Decrease advertising spending

Explanation: To increase CLV, a fintech company can offer additional products or services to existing customers, encouraging them to stay and spend more.

Question: How can a fintech company use CLV to make strategic decisions?

A) By ignoring it and focusing on short-term gains

B) By understanding the potential long-term value of different customer segments

C) By relying solely on competitor analysis

D) By conducting daily financial audits

Explanation: A fintech company can use CLV to make strategic decisions by understanding the potential long-term value of different customer segments, allowing for targeted marketing and product development.

Domain 10 – Revenue Projections and Cost Structure in Fintech Case Studies

Revenue projections, often referred to as sales forecasts, are estimates of the future income a business expects to generate from its products, services, or operations over a specific period. Cost structure refers to the breakdown and categorization of all expenses and costs incurred by a business in the process of producing, distributing, and selling its products or services. 

Question: In a fintech case study, what does “Revenue Projections” refer to?

A) The total number of employees in the fintech company

B) The anticipated income generated by the fintech product or service over a specific period

C) The current market share of the fintech company

D) The level of customer satisfaction with the product

Explanation: Revenue Projections in a fintech case study refer to the anticipated income generated by the fintech product or service over a specific period, typically based on forecasts and market analysis.

Question: Why are accurate revenue projections important for fintech companies?

A) To secure venture capital funding

C) To assess the number of competitors in the industry

D) To plan for sustainable growth and financial stability

Explanation: Accurate revenue projections are important for fintech companies to plan for sustainable growth and financial stability, making informed business decisions.

Question: In a fintech case study, if a company’s cost structure primarily consists of high marketing and customer acquisition expenses, what might this imply?

A) The company is highly profitable.

B) The company has a low customer acquisition rate.

C) The company is investing heavily in growth and customer acquisition.

D) The company is experiencing financial losses.

Explanation: A cost structure with high marketing and customer acquisition expenses suggests that the company is investing heavily in growth and customer acquisition, which can impact short-term profitability.

Question: Which of the following is NOT typically considered a component of a fintech company’s cost structure?

A) Employee salaries and benefits

B) Marketing and advertising expenses

C) Regulatory compliance costs

D) Revenue generated from customers

Explanation: Revenue generated from customers is not a component of a fintech company’s cost structure; it represents income rather than an expense.

Question: How can a fintech company optimize its cost structure to improve profitability?

A) By increasing marketing and advertising expenses

B) By reducing employee salaries and benefits

C) By focusing on rapid customer acquisition at any cost

D) By conducting cost-benefit analyses and identifying areas for efficiency improvements

Explanation: A fintech company can optimize its cost structure and improve profitability by conducting cost-benefit analyses and identifying areas for efficiency improvements, rather than simply cutting expenses.

Share this post

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Post Comment

Get Govt. Certified Secure Assured Job Interview

Government certificate

Lifetime Valid

Job Support

Industry Recognized

Invest in Your Future: Upskill Now!

Get industry recognized certification – contact us.

Past Perfect, Future Tense? Themes shaping the future of Fintechs in India

Prateek Roongta Rajaram Suresh Sheetal Jasrapuria

Indian Fintechs have been the posterchild of India’s digital growth story, with their growth propelled by a surplus of capital, maturing infrastructure and favorable underlying customer demographics. The good news for Fintechs is that India’s digital infrastructure is only expected to further mature and the underlying demand growth is expected to stay strong. This paper crystallizes the existing and emerging secular themes underpinning the success of fintechs thus far. However, the Fintechs will also have to operate in an environment with regulator(s) that are increasingly nationalistic, pro-consumer, and vigilant; licensed incumbents who are strengthening their digital capabilities; increasingly affluent and digitally savvy customers who are hungry for their financial needs to be met digitally; and most importantly, a large base of mass customers waiting to be digitally educated and serviced. The paper dives deeper into the granular vertical-specific themes that will shape the future of fintechs and the implications on payments, lending, wealth, insurance and Web3 fintechs.

• S&P Dow Jones Indices
• S&P Global Market Intelligence
• S&P Global Mobility
• S&P Global Commodity Insights
• S&P Global Ratings
• S&P Global Sustainable1
• Investor Relations Overview
• Investor Presentations
• Investor Fact Book
• News Releases
• Quarterly Earnings
• SEC Filings & Reports
• Executive Committee
• Corporate Governance
• Merger Information
• Stock & Dividends
• Shareholder Services
• Contact Investor Relations
• Email Subscription Center
• Media Center

An Analysis of the UK Fintech Market

Next in Tech | Episode 166: The NAB Show And The Broadcast Market

MediaTalk | Season 2 Ep. 11 - Broadcast TV's Past, Present And Future

Data Insights: Enhancing regulatory compliance and client lifecycle management.

MediaTalk | Season 2 Ep. 10 Broadband by the Numbers: Adds, Losses and Closing the Digital Divide

• 5 Oct, 2021
• Theme Corporates Technology, Media & Telecom Custom Financial Services Banking Fintech
• Segment Banking
• Tags S&P Capital IQ Platform

The UK Fintech ecosystem continues to thrive with a strong entrepreneurial community working alongside established firms, a large client-base, a growing influx of investors domestic and foreign, and support from Government. With the recent addition of more than 12 million private companies to the S&P Capital IQ Pro database it is now possible to paint a more complete picture of the industries that have a thriving ecosystem of private companies and start-ups. To celebrate the newly launched S&P Capital IQ Pro version of the desktop, we conducted an analysis of the UK Fintech market. Highlights from the report include:

• The Top 16 Fintech Unicorns in the UK have an aggregate market cap of £60bn.
• Revolut Ltd, the largest unicorn, now holds an implied market valuation, £24bn, comparable to some of the UK’s major banks. –
• The average time it has taken UK Fintech Unicorns to achieve unicorn status is 8 years.
• Fintechs across the UK are thriving with higher concentrations in London, followed by regional centers like Manchester, Leeds and Edinburgh.
• Companies in the Payments space dominate the unicorn list and lead in terms of their ability to capture funding.
• 28 Fintech M&A transactions were completed in 2020 and volume has not slowed down in 2021, with 19 deals just in H1. EV/EBITDA multiples in the UK remain within historical bounds.
• Foreign capital still takes the larger share of private equity investment into the sector but UK-based Private Equity/Venture Capital (PE/VC) firms, for example, Seedcamp and Balderton Capital, are contributing to the growth of domestic Fintech firms.
• ACCESS THE FULL REPORT

Learn more about Market Intelligence

• Corporates Technology, Media & Telecom Custom Financial Services Banking Fintech
• S&P Capital IQ Platform