Learning Objectives:

• Understand the strategies of FinTech companies.

• Analyse how incumbents innovate (innovation labs, accelerators).

• Develop strategic recommendations for FinTech disruptions.

7.1 Understanding FinTech Strategy

The UCL module on “Innovation and Strategy in Finance” aims to teach “how innovation occurs in the financial services landscape through fintech” and equip students to “analyse and develop strategic recommendations for a fintech disruption or innovation” . This involves:

• Mapping and Exploring the FinTech Ecosystem: Understanding the drivers of change, including start-ups, incumbents, investors, consumers, technology companies, and regulators .

• Analysing Disruption: Understanding how FinTechs disrupt incumbents through business model innovation or technology .

• Assessing Incumbent Strategy: Evaluating how legacy technology hinders incumbents and what strategies they use to innovate, such as innovation labs and corporate accelerators .

7.2 Innovation Mechanisms

The Warwick University module on “Fintech for Consumer Financial Services” focuses on “understanding the innovation mechanisms and partnership strategies that characterise the FinTech Revolution” . Key areas of focus include :

• FinTech Innovation Mechanisms: The processes and strategies that drive innovation.

• FinTech Innovation Strategies: How different players within the FinTech ecosystem pursue innovation.

• Developing FinTech Consumer Services: The process of developing and bringing new FinTech products to market.

7.3 Case Studies in FinTech Strategy

The University of South Wales module includes a focus on “designing FinTech services through Responsible Innovation” and uses case studies to explore how FinTechs and incumbents have responded to disruption . The module aims to develop “critical understanding of how financial technology reshapes markets and by preparing students to develop informed, responsible innovation strategies in their future careers” .