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Sustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuation

dc.contributor.authorMoro-Visconti, Roberto
dc.contributor.authorCruz Rambaud, Salvador
dc.contributor.authorLópez Pascual, Joaquín
dc.identifier.citationMoro-Visconti, R.; Cruz Rambaud, S.; López Pascual, J. Sustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuation. Sustainability 2020, 12, 10316.
dc.descriptionThis research has been equally funded by a research grant from the Università Cattolica del Sacro Cuore, Milan, Italy, and the Spanish Ministry of Economy and Competitiveness (grant number DER2016-76053R).es
dc.description.abstractFinancial Technology (FinTech) is an industry composed of diversified firms that combine financial services with innovative technologies. The research question and main goal are attempting to answer whether they are more similar to traditional banks or trendy technological firms deploying their innovativeness to favor financial inclusion and sustainability. Justification: Evaluators may wonder if FinTechs follow the typical evaluation patterns of bank/financial intermediaries or those of technological firms. Preliminary empirical evidence shows that the latter interpretation is the one consistent with the stock-market mood. Objective: This study goes beyond the extant literature, analyzing the differences between FinTechs and traditional banks in market valuation, and showing the potential for digital interaction and cross-pollination of complementary business models. Methodology: The differences will be empirically analyzed with the stock market valuation and the multipliers associated with these firms. Results: The main contribution of this paper is that the appraisal approaches of FinTechs follow those of technological startups, having a revenue model much more scalable than that of a typical bank. FinTechs may so provide a solution for sustainable finance with microfinance and crowdfunding among others. FinTechs and traditional banks may eventually converge towards a common market exploiting co-opetition strategieses
dc.rightsAtribución 4.0 Internacional*
dc.subjectfinancial innovationes
dc.subjectvalue chainses
dc.subjectdigital platformses
dc.subjectfinancial ecosystemes
dc.subjectdiscounted cash flowses
dc.subjectmarket valuees
dc.subjectSustainable Development Goalses
dc.titleSustainability in FinTechs: An Explanation through Business Model Scalability and Market Valuationes

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Atribución 4.0 InternacionalExcept where otherwise noted, this item's license is described as Atribución 4.0 Internacional