Digital Disruption – Exploring Innovation inStockholm based FinTech companies
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
FinTech (Financial Technology) companies are specialized actors combining financial serviceswith software technology. In recent years FinTech companies have emerged as a majordisruptive force in the financial industry. Rapid technological and societal developments havecreated new market opportunities which established banks have been slow to act on. Instead,FinTech companies are changing the climate in the financial sector by offering highly innovativeproducts and services. Stockholm has established itself as one of the leading FinTech scenes inEurope, and has given birth to successful FinTech companies such as Klarna and iZettle.Previous research on FinTechs’ innovation capabilities has been scarce. The purpose of thisstudy has therefore been to explore the innovation processes of FinTech companies based inStockholm. Seven semi-structured interviews were conducted with people responsible forinnovation and product development in prominent Stockholm FinTech companies.Based on a thematic analysis of the interview results, five key components of FinTechcompanies’ innovation processes and associated drivers are identified. First, the companiesexperience an initial abundance of ideas driven by a mentality that challenges existing marketconventions. Second, the companies have a user-centered outlook driven by strong initial visionsof how user needs can fulfilled in a better way. Third, the FinTech companies prioritizesimplifying user experiences, driven by increasing modularization in the financial industry.Fourth, the companies have a proactive stance to undefined regulation, driven by the possibilityof gaining first mover advantages. Fifth, FinTech companies are able to achieve high degree ofradical innovation by innovating on meanings users see in their products and services, driven bythe recent changes in technological context. Future research may include banks’ responses toFinTech as well as an investigation of the effects of regulatory changes on innovation in thesector.
Place, publisher, year, edition, pages
2016. , 64 p.
FinTech, Innovation, Stockholm, Modularization, Financial Services, Banks
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-189739OAI: oai:DiVA.org:kth-189739DiVA: diva2:948532
Ekam Rising, Marianne