Do Fintechs Align More with Banks or Tech Firms?

This study investigates the strategic unity of fintech enterprises, assessing whether their characteristics bear greater resemblance to conventional banking institutions or technological corporations. Through the evaluation of operational functions, target demographics, business frameworks, stakeholder engagements, equity market dynamics, and empirical data, the analysis indicates that fintechs exhibit a closer alignment with technology companies. The inquiry uncovers significant lacunae in the prevailing scholarly discourse, particularly regarding the examination of fintechs’ fundamental attributes and their ramifications for strategic positioning. The results not only imply that fintechs are more akin to technology firms but also underscore the increasing convergence between fintechs and tech enterprises, propelled by the incursion of Big Tech and a heightened focus on sustainability. This implies an evolving financial landscape where traditional categorizations are progressively obscured. Our research is pivotal for comprehending and navigating this emergent terrain, which holds paramount importance for professionals operating within the financial and technological domains.