Cutting Through the Fog: Finding a Future with Fintech

The case examines the scope, history, and scale of the fintech industry, while also defining what fintech may be?and what it is not. The protagonist, management consultant Carolina Costa, is tasked to advise a client bank executive regarding alternative paths into fintech that he could choose. The material includes an overview of the fintech market, including analysis of entrants from start-up incubators, banks, and technology companies. The case figures and exhibits provide data to allow students to analyze the current market saturation and consumer needs in regard to fintech products. This case was designed for a second-year MBA elective course on financial institutions and markets but can also be taught in a first-year module on banking and financial institutions/financial landscape or as an opener to a core financial management course on strategic options, investment strategy, and value creation.
Describe the evolution of the fintech landscape and the various companies involved; Analyze the environmental conditions that have led to the popularity of fintech and determine where fintech is in a cycle of development; Consider the impact of fintech on traditional banks and financial institutions broadly and determine appropriate responses from banks/financial institutions in the wake of fintech; Explore efforts to regulate the growing fintech industry; Predict which business areas and product types could be tapped for fintech growth; Develop an awareness of the magnitude of capital investments and acquisitions in/of fintech companies; Defend an appropriate strategy for an incumbent financial institution to use regarding fintech; Consider the role of traditional commercial banks, investment banks, and fintech companies for economies and society at large.