The five emerging business models of fintech for AI adoption, growth and building trust

Abstract

Financial technology, Fintech, is going through a very disruptive digital transformation that is going beyond just making existing models leaner and faster. This research uses a qualitative approach to identify five models of Fintech that can utilize AI to its full potential. The five models are: (a) an incumbent in finance disaggregating and focusing on one part of the supply chain, (b) an incumbent utilizing AI in their current processes without changing their business model, (c) an incumbent extending their model to utilize AI and access new customers and data, (d) a new disrupting startup only getting involved in finance utilizing AI to gain an advantage over incumbents, and (e) an existing tech company disrupting finance by adding financial services to their portfolio of services. The five Fintech business models give an organization five proven routes to AI adoption and growth. Building trust is central to all five models. Trust is not always built at the same point in the value chain, or by the same type of organization. The trust building should usually happen where the customers are attracted and on-boarded.