Defining categories of Fintechs: A Categorization Proposal Based on Literature and Empirical Data

Abstract

Purpose – The analysis of the competitive impact of FinTechs requires the standardization of their categories to compare their products and services with the already delivered by incumbent banks. In this study, we address the problem of the multiplicity of FinTechs categories and provide a solution using content and cluster analysis.Theoretical framework – The literature about FinTechs. In our bibliographical research, we do not find works aiming to present a standard definition of categories of FinTechs. This type of work is almost nonexistent and categorization of FinTechs is defined as a “blurry issue”.Design/methodology/approach – In this study, we address the problem of the multiplicity of FinTechs categories and provide a solution using content analysis, cluster analysis, and the software Gephi.Findings – The result is a model comprised of nine FinTechs categories: Payments and Transfers; Exchange; Lending; Insurance; Investments; Advice; B2B; Digital Banks; and Others. We also elaborate a portfolio with 157 products and services offered by Brazilian incumbent banks, which allows the comparison between these two types of companies.Originality/value – The main contribution is the use of objective criteria and existing literature, as well as Gephi software, to build categories of FinTechs analysis, an emerging theme in financial market studies.