Innovation Relationships in the Emergence of Fintech Ecosystems

Abstract

This paper explores the emergence of ecosystems in the context of Fintechs infusing digital technology into financial services. The rapid rise of Fintechs has changed the business landscape, challenging the established firms with novel solutions and services. As a result, the established firms are turning to new models of cooperation, replacing the hierarchically managed value chains with ecosystems that are modular and decentralized in their architecture. First, a bibliometric analysis was conducted to present the content and relationships in Fintech research in general. Then, a case study on two of the biggest retail banks in Finland and their innovation relationships in developing Distributed Ledger Technologies and related services was conducted. The results show how established players have established multiple innovation relationships, in different ecosystems as well as between them. These can be seen to demonstrate the emergence of Fintech ecosystems. The study contributes to previous literature by making the linkages explicit, particularly by examining the contextual elements that are crucial enablers or hindering factors in such relationships.