FinTech in Taiwan: a case study of a Bank’s strategic planning for an investment in a FinTech company

Jui-Long Hung () and Binjie Luo ()
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Jui-Long Hung: Boise State University
Binjie Luo: Agricultural Bank of China

Financial Innovation, 2016, vol. 2, issue 1, 1-16

Abstract: Abstract Introduction Since 2015 is the year of FinTech in Taiwan, it is worth investigating the challenges that emerged when banks were encouraged to invest in FinTech companies for collaboration. This study aims to identify the strategic considerations in the process of searching for FinTech investment targets. Case description This study used a case study investigation of a top-5 bank in Taiwan. The major data sources include the meeting notes of the FinTech investment task force and interviews with the team members. Co-opetition theory was adopted as the theoretical framework and interview questions were derived from the PARTS strategies in co-petition theory. The results relate to: (1) the strategic goals of FinTech investment, (2) the added value from FinTech companies, (3) criteria in selecting candidates in the same FinTech area, (4) choosing to work as either a cooperator or a competitor, and (5) barriers from policies and regulations. Discussion and evaluation This study has several findings: (1) regulations and policies shape FinTech’s development; (2) banks, technology companies, and customers are not “FinTech ready;” (3) Compare top-down with bottom up strategies; (4) banks and FinTech companies have complex relationships; (5) it is unlikely that Taiwan will produce FinTech disruptors in the near future. Conclusion The findings and discussion can benefit researchers and administrators in finance-related industries. More studies are desired to observe long-term development in terms of how companies collaborate or compete in specific FinTech areas.

Keywords: FinTech; Taiwan FinTech Industry; Investment in FinTech; Bank 3.0; Taiwan bank industry; Co-opetition Theory; PARTS (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (19)

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DOI: 10.1186/s40854-016-0037-6

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