The evolution of FinTech industry: The role of interaction between disruptive innovation and ecosystem

Abstract

Disruptive innovations have radically transformed many industries at a time of information and communication technology and fourth industrialization. Salient examples such as Apple, Google, and Facebook reveal how disruptive innovations often emerge at the ecosystem or system level rather than individual firms. Unfortunately, there has been little attention in the academic literature about the role of ecosystem development and the evolution of disruptive innovations. To overcome the chasm, this study introduces the concepts of disruptive innovation ecosystems and clarifies how the financial technology (FinTech) ecosystem has transformed the financial service industry. Finally, this study discusses the evolution of the FinTech ecosystem and proposes a future research agenda on disruptive innovations and ecosystems. Our study shows that disruptive innovation ecosystems are deserving of further attention.