The Evolution of Fintech: Analysis of Valuation Metrics and Market Dynamics

by Gimede Gigante PhD

Overview

The Fintech sector is one of the most dynamic and innovative areas within the global financial industry. In recent years, the integration of advanced technologies, unconventional business models, and emerging competitive dynamics has profoundly reshaped the financial landscape, creating unprecedented opportunities and challenges. This book is positioned within a constantly evolving context, aiming to provide a structured and in-depth analysis of the key trends redefining the sector. The focus extends beyond technological advancements and regulatory frameworks to encompass an evaluation of Fintech startups and enterprises, highlighting the increasingly significant role of soft indicators (governance, management quality, regulation, and ecosystem). Furthermore, it explores the relationship between Fintech companies and traditional financial institutions, with particular emphasis on collaborative strategies, M&A activities, and emerging business models. The distinctive value of this book lies in its balanced approach between theory and practice, integrating academic rigor with practical implications for investors, policymakers, and industry professionals.

Product Details

ISBN-13:	9791281627697
Publisher:	EGEA Spa - Bocconi University Press
Publication date:	12/01/2025
Pages:	196
Product dimensions:	6.75(w) x 9.50(h) x (d)

About the Author

is the Director of ICE – Innovation and Corporate Entrepreneurship centre at SDA Bocconi and the Director of the European Fs Tech Hub of Milan. He is also the Program Director of the International Management– China MiM degree at Bocconi University, where he holds a tenured core faculty position in Financial Intermediaries’ Economics within the Department of Finance.

Table of Contents

Introduction 1. The Fintech Sector 1.1 Fintech: Definition and Scope of Analysis • Definition of the Term “Fintech” • The Fintech Ecosystem • Technologies, Fields of Application and Business Areas 1.2 Empirical Analysis of the Fintech Sector • Global Scenario • Regional Scenario 1.3 Evaluation of Fintech Start-Ups/Companies • How VCs Impact Ratings • Factors Impacting the Evaluation: Evolution of Metrics Considered in the Evaluation • Investment Strategies and External Factors • Main Challenges Regarding the Valuation of Fintechs • Main Evaluation Methodologies • Drivers of the Value of a Fintech Start-Up • Assessment of Current Methods • Timing • Analysis of Valuation Trends: The Speculative Bubble of 2021 1.4 Case Studies • Introduction to Buy Now Pay Later • Introduction to Klarna • Analysis of Klarna's Evaluation 2. Soft Indicators 2.1 Governance • Profile of Founders and Key Stakeholders • Board of Directors • Characteristics of the CEO • Governance Policies • Quality of the Auditing Company 2.2 Management • Management Control Systems Financial • Human Resources Management Control Systems • Management Control Systems of Strategic Planning 2.3 Regulation • Regulatory Development and Fintech • Regulatory Status • Regulatory Sandbox 2.4 Ecosystem • Fintech Startups • Technology Developers • Institutions • Financial Customers • Universities, Hubs, Accelerators • Incumbent 2.5 Sustainability & Fintech 2.6 Soft Indicators: Empirical Evidence • Introduction • Research Hypotheses • Methodology • Regression Model • Analysis of Results • Implications of the Results 3. The Relationship Between Incumbents and Fintech 3.1 The Digitisation of the Banking Sector • The Role of Incumbents in Digital Transformation • Benefits of Incumbent and Fintech Alliances: The Incumbent Perspective • Benefits of Alliances Between Incumbents and Fintechs: The Fintech Perspective • Incumbent and Fintech Collaboration Models 3.2 M&A Between Incumbent and Fintech • The Transformation of Incumbents: The Rise of Fintechs and the Need to Innovate and Compete • Participations and Collaborations: The Numbers in 2023 • The Evolution of M&A Transactions in Fintech • Challenges In Fintech Integration: Why Have Expectations Not Been Met? • Strategies for Effective Incumbent and Fintech Integration: How to Maximise Acquisition Value 3.3 Incumbents and Fintech: Empirical Evidence • Introduction • Analysis of Literature • M&A in the Fintech Sector • Methodology • Analysis of Results • Discussion and Implications Conclusions