Abstract
Framework: Financial Technology (FinTech) is an industry composed of diversified firms
that combine financial services with innovative technologies. The research question and main goal are
attempting to answer whether they are more similar to traditional banks or trendy technological firms
deploying their innovativeness to favor financial inclusion and sustainability. Justification: Evaluators
may wonder if FinTechs follow the typical evaluation patterns of bank/financial intermediaries or
those of technological firms. Preliminary empirical evidence shows that the latter interpretation
is the one consistent with the stock-market mood. Objective: This study goes beyond the extant
literature, analyzing the differences between FinTechs and traditional banks in market valuation,
and showing the potential for digital interaction and cross-pollination of complementary business
models. Methodology: The differences will be empirically analyzed with the stock market valuation
and the multipliers associated with these firms. Results: The main contribution of this paper is that
the appraisal approaches of FinTechs follow those of technological startups, having a revenue model
much more scalable than that of a typical bank. FinTechs may so provide a solution for sustainable
finance with microfinance and crowdfunding among others. FinTechs and traditional banks may
eventually converge towards a common market exploiting co-opetition strategies.
Lingua originale | English |
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pagine (da-a) | 1-24 |
Numero di pagine | 24 |
Rivista | Sustainability |
Volume | 2020 |
DOI | |
Stato di pubblicazione | Pubblicato - 2020 |
Keywords
- Financial innovation
- Sustainable Development Goals
- digital platforms
- discounted cash flows
- financial ecosystem
- market value
- scalability
- value chains