FinTech Activities and Business Models: Analogies and Differences with the Traditional Financial Channels

  • Alessandra TandaEmail author
  • Cristiana-Maria Schena
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)


Technological progress and the dissemination of innovation have enabled FinTech companies to emerge. These are currently able to offer products and services in all areas of traditional financial intermediation, often outside the regulatory perimeter. Not only do FinTech companies provide new products and processes, but they also enter the market with new business models and services which respond better to customers’ demands and preferences. Via the unbundling and rebundling of financial services, FinTech companies are able to specialise in various business segments and potentially disrupt traditional incumbent activities. Nevertheless, in contrast to BigTech, FinTech companies have to collect and gather information and reach critical masses if they are to become formidable competitors.


FinTech Unbundling Business model Financial services 


  1. Allegreni, F. (2018, October 31). Peer to peer lending: Prestiamoci dà il via alla prima cartolarizzazione di crediti personali [Peer to peer lending: Prestiamoci starts the first securitization of personal loans]. Retrieved March 27, 2019, from
  2. Arner, D. W., Barberis, J., & Buckley, R. P. (2016). The evolution of FinTech: New post-crisis paradigm. Georgetown Journal of International Law, 47(4), 1271–1320.Google Scholar
  3. ASIC (Australian Securities and Investment Commission). (2017). Survey of marketplace lending providers. Report 256.Google Scholar
  4. BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht). (2018, July). Big data meets artificial intelligence. Challenges and implications for the supervision and regulation of financial services.Google Scholar
  5. Baker, H. K., Filbeck, G., & Ricciardi, V. (Eds.). (2017). Financial behavior: Players, services, products, and markets. New York, NY: Oxford University Press.Google Scholar
  6. Banca d’Italia. (2017, December). FinTech in Italy. Fact-finding inquiry on the impact of financial technology on the financial, banking and insurance sectors. Retrieved March 27, 2019, from (
  7. Barba Navaretti, G., Calzolari, G., & Pozzolo, A. F. (2017). FinTech and banks: Friends or foes? European Economy, 2, 9–31.Google Scholar
  8. Barbagallo, C. (2018, November 12). Il sistema bancario italiano: situazione e prospettive [Italy’s banking system: The current situation and the outlook]. Speech by the Director General for Financial Supervision and Regulation at the ASSBB, Varignana (Bologna–Italy).Google Scholar
  9. BIS-FSB. (2017, May 22). FinTech credit. Market structure, business models and financial stability implications. Report prepared by a Working Group established by the Committee on the Global Financial System (CGFS—Bank of International Settlement) and the Financial Stability Board.Google Scholar
  10. Bofondi, M. (2017). Lending-based crowdfunding: Opportunities and risks. Banca d’Italia Occasional Papers—Questioni di Economia e Finanza, n. 375/2017.Google Scholar
  11. Capgemini-EFMA. (2017). World FinTech report 2017. Retrieved March 27, 2019, from
  12. CB Insights. (2017). Big Tech in AI: What Amazon, Apple, Google, GE, and others are working on.Google Scholar
  13. CGFS and FSB. (2017, May 22). FinTech credit: Market structure, business models and financial stability implications. Committee on the Global Financial System (CGFS) and Financial Stability Board (FSB).Google Scholar
  14. Claessens, S., Frost, J., Turner, G., & Zhu, F. (2018, September). Fintech credit markets around the world: Size, drivers and policy issues. BIS Quarterly Review.Google Scholar
  15. Consob–OCF–Università Roma Tre–GFK. (2017). La relazione consulente-cliente, Addendum al Rapporto Consob sulle scelte finanziarie delle famiglie italiane [The consultant-client relationship, Addendum to the Consob Report on the financial choices of Italian families].Google Scholar
  16. Di Mascio, A. (2018). Wealth management e Fintech. Le nuove sfide tra Private Banker e Robo Advisor [Wealth Management and Fintech. The new challenges between Private Banker and Robo Advisor]. Milan: Egea.Google Scholar
  17. EBA. (2017, August 4). Discussion paper on the EBA’s approach to financial technology (FinTech). EBA/DP/2017/02.Google Scholar
  18. EBA. (2018, July 3). EBA report on the impact of Fintech on incumbent credit institutions’ business models.Google Scholar
  19. ECB. (2018, June). Survey on the access to finance of enterprises in the euro area.Google Scholar
  20. EIOPA. (2017). EIOPA InsurTech Roundtable. How technology and data are reshaping the insurance landscape.Google Scholar
  21. ESAs. (2018, September 5). Joint Committee report on the results of the monitoring exercise on ‘automation in financial advice’. JC 2018/29.Google Scholar
  22. European Commission. (2018, March 8). Proposal for a regulation of the European Parliament and of the council on European Crowdfunding Service Providers (ECSP) for business. COM(2018) 113 final, 2018/0048 (COD), Brussels.Google Scholar
  23. Federal Reserve Banks. (2017). Small business credit survey. Report on employer firms.Google Scholar
  24. Financial Times. (2018, October 22). UK peer-to-peer lender asks regulator for help.Google Scholar
  25. Finextra. (2019, March 26). Satispay passports out of London with Luxembourg licence. Retrieved April 1, 2019, from
  26. Forbes. (2019, February 5). A major bitcoin exchange has a serious problem. Retrieved from
  27. FSB. (2017a, June 27). Financial stability implications from FinTech, supervisory and regulatory issues that merit authorities’ attention.Google Scholar
  28. FSB. (2017b, May 10). Global shadow banking monitoring report 2016. Financial Stability Board.Google Scholar
  29. FSB. (2018, March 5). Global shadow banking monitoring report 2017. Financial Stability Board.Google Scholar
  30. Fujitsu. (2018). Digitalization is not a “threat” but an “opportunity”―The future of financial services delivered by FinTech. Fujitsu Journal. Retrieved from
  31. Gobbi, G. (2016). The troubled life of the banking industry, European Association of University Teachers of Banking and Finance. Wolpertinger conference 2016, Verona. Retrieved March 27, 2019, from
  32. Hau, H., Huang, Y., Shan, H., & Sheng, Z. (2017). TechFin in China: Credit market completion and its growth effect. BFER 6th annual conference, Singapore.Google Scholar
  33. Jakšič, M., & Marinc, M. (2015). The future of banking: The role of information technology. Bančni Vestnik, 64(11), 68–73.Google Scholar
  34. Kirby, E., & Worner, S. (2014). Crowd-funding: An infant industry growing fast. Staff working paper of the IOSCO Research Department, SWP3/2014.Google Scholar
  35. Liberti, J. M., & Petersen, M. A. (2018, August). Information: Hard and soft. WP.
  36. Nakaso, H. (2017, November 1). Big data—Its impacts on economies, finance and central banking. Remarks at the Fourth FinTech Forum of Deputy Governor of the Bank of Japan.Google Scholar
  37. OECD. (2018). Financial markets, insurance and pensions, digitalisation and finance. Retrieved March 27, 2019, from
  38. OICV-IOSCO. (2017, February). IOSCO research report on financial technologies (Fintech).Google Scholar
  39. Pia, P. (2017). La consulenza finanziaria automatizzata [Automated financial advice], Franco Angeli, Milano.Google Scholar
  40. PWC. (2018). Le aziende del Fintech in Italia nel 2017 [Fintech companies in Italy in 2017]. Retrieved March 27, 2019, from
  41. PWC. (2019). Piccole FinTech crescono con “intelligenza” [Small FinTechs grow with “intelligence”]. Retrieved March 28, 2019, from
  42. Reuters. (2019, March 19). Finnish crowdfunding firm invesdor buys Austrian peer, seeks M&A. Retrieve April 1, 2019, from
  43. Rooney, K. (2018, November 16). PayPal and Square quietly grow small business lending using data as their edge over banks. CNBC. Retrieved March 28, 2019, from
  44. Schena, C., Tanda, A., Arlotta, C., & Potenza, G. (2018, March). The development of FinTech. Opportunities and risks for the financial industry in the digital era. Consob—FinTech papers, no. 1. Retrieved March 28, 2019, from
  45. Scopsi, M. (2018). The expansion of big data companies in the financial services industry, and EU regulation. IAI papers 19/06.Google Scholar
  46. Sperimborgo, S. (2016). Banche e innovazione tecnologica. Come avere successo nella tempesta perfetta della rivoluzione digitale [Banks and technological innovation. How to succeed in the perfect storm of the digital revolution]. Bancaria, n. 12.Google Scholar
  47. Viacom. (2013). The millennial disruption index. Retrieved March 28, 2019, from
  48. World Bank Group and the People’s Bank of China. (2018). Toward universal financial inclusion in China: Models, challenges, and global lessons. Retrieved March 28, 2019, from
  49. Worthington, S., & Welch, P. (2010). Banking without the banks. International Journal of Bank Marketing, 29(2), 190–201. Retrieved March 28, 2019, from Scholar
  50. Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. N. (2017). From FinTech to TechFin: The regulatory challenges of data-driven finance. EBI working paper series, no. 6.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Department of Economics and ManagementUniversity of PaviaPaviaItaly
  2. 2.Department of EconomicsUniversity of InsubriaVareseItaly

Personalised recommendations