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FinTech Platforms and Strategy

20 Pages Posted: 3 Jan 2017 Last revised: 15 Aug 2017

Vasant Dhar

New York University (NYU) - Leonard N. Stern School of Business; New York University (NYU) - Department of Information, Operations, and Management Sciences

Roger Stein

Sloan School of Management, MIT

Date Written: December 14, 2016

Abstract

A major consequence of the Internet era is the emergence of complex “platforms” that combine technology and process in new ways that often disrupt existing industry structures and blur industry boundaries. These platforms allow easy participation that often strengthens and extends network effects, while the vast amounts of data captured through such participation can increase the value of the platform to its participants, creating a virtuous cycle. While initially slow to penetrate the financial services sector, such platforms are now beginning to emerge. We provide a taxonomy of platforms in Finance and identify the feasible strategies that are available to incumbents in the industry, innovators, and the major Internet giants.

Keywords: Fintech, Platform, Innovation, Competition, Technology

JEL Classification: L15, L22, L23, L24, L86, O30, D02, D23, D24, D40, G20, L10

Suggested Citation

Dhar, Vasant and Stein, Roger, FinTech Platforms and Strategy (December 14, 2016). MIT Sloan Research Paper No. 5183-16. Available at SSRN: https://ssrn.com/abstract=2892098

Vasant Dhar

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
New York, NY NY 10012
United States

HOME PAGE: http://www.stern.nyu.edu/~vdhar

New York University (NYU) - Department of Information, Operations, and Management Sciences

44 West Fourth Street
New York, NY 10012
United States

Roger Stein (Contact Author)

Sloan School of Management, MIT ( email )

100 Main Street
E62-416
Cambridge, MA 02142
United States

HOME PAGE: http://www.rogermstein.com

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