Cashing in on innovation: a taxonomy of FinTech

In this article, we provide a taxonomy of the different types of innovation occurring in financial services, a framework which we refer to as our FinTech Ecosystem. We use this FinTech Ecosystem to highlight the various areas of potential value for investors who are looking into ventures in this space as alternative investments. Our conceptual framework enables investors to examine emerging technologies and FinTech verticals through the lens of a sector analysis. To better understand where the FinTech Revolution started and where it is going, we apply the concept of digital transformation to the financial services industry which allows us to highlight the delicate risk-reward balance in FinTech.