Abstract

The emergence of Fintech platforms has revolutionized the way financial services are provided. And yet, in spite of their growing prominence in the global financial sector, there remains a lack of understanding of the competitive strategies that are appropriate for these platform-based businesses, and the implications of those strategies for their performance. Examining four case studies of some of the most successful Fintech platforms in China from the theoretical perspective of the core logics of strategy, we develop a theoretical framework that suggests that the nature of the competitive strategies deployed by a Fintech platform should be contingent on (1) the extent to which their services can be differentiated, as well as (2) the tangibility and physical presence of the platform’s service offerings. More specifically, our framework presents four different combinations of competitive strategies that Fintech platforms can adopt contingent on the nature of their services along these two dimensions. In addition, beyond the two dimensions, our framework suggests that all Fintech platforms should be underpinned by a common strategic core consisting of strategies that align the platform with social pressures. These pressures include those exerted by the government, the market, and society in general. With its findings, it is hoped that our study will provide specific guidance for Fintech practitioners on the appropriate competitive strategies to adopt in order to set their platforms on the path of commercial success.

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