Loosely, fintech can be taken to mean any innovative idea, put into practice, that improves financial service processes with information and communication technology to meet needs; then again, in a more comprehensive characterization, fintech can also be considered a new financial industry, powered via the internet by applications, processes, products, and business models in end-to-end processes. Therefore, to “measure” fintech, one must first circumscribe what practicable parameters will “define” it with SMART (Specific; Measurable; Attainable, Appropriate or Attributable; Relevant, Realistic, or Reliable; and Timebound) indicators.

Yes, first define the field as @ Oliver Serrat suggested, so that it is clear what you mean by fintech. You have different sorts of fintech companies.

And it depends what you want to measure of the fintech sector. Do you want to measure the input, throughput (processes) output? Then you can ask questions such as:

a. Input: how many fintech companies are there (per region, countries, worldwide), how many people do they employ, where are they vested, in which companies do they invest or sector, how much capital do they have collected to invest.

b. Throughput: how much capital do they process, how many projects, what kind of activities do they carry out, which innovative systems do they use comparable to banks.

c. Output:how much loans have they given to a sector, how do they effect the growth and innovation of the sectors they are working with, etc.

But you can use other indicators then from the above approach.

See also:

https://assets.kpmg/content/dam/kpmg/ch/pdf/global-fintech-benchmarking-report.pdf

https://www.businessinsider.com/fintech-ecosystem-report?international=true&r=US&IR=T

https://fintechworldreport.com

http://pubdocs.worldbank.org/en/877721478111918039/breakout-DigiFinance-McConaghy-Fintech.pdf

Fintech is the buzzword within the banking industry. It refers to the use of technology across all financial services functions. For instance, the simple task of replacing paper-based processes with software and applications is an example of fintech at work.

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FinTech – A "disruptive" innovation

Africa Update

14 Dec 2017, by Khemila Narraidoo, Associate-Barrister at Juristconsult Chambers

FinTech will inevitably change the way we do business in Mauritius and elsewhere, thereby creating opportunities for both industry incumbents and new players. The dynamic nature of emerging markets creates challenges that the developed world has never before confronted, but at the same time it also opens up opportunities for innovation and growth. Over the years to come, we are set to see faster changes in the payments landscape, building on the accelerating growth in electronic payments and the advent of new and disruptive market players.

What is FinTech?

FinTech is a global phenomenon which is disrupting and changing the worldwide financial landscape. It started with an apparent spelling error and became a word that is on everyone's lips.

Originally, the term referred to technology which is applied to the back-end of established companies and financial institutions. Since the end of the first decade of the 21st century, the term has expanded to include any technological innovation in the financial sector, including innovations in financial literacy and education, retail banking, investment and even cryptocurrencies like bitcoin.

The term financial technology can apply to any innovation in how people transact business, from the invention of money to double-entry bookkeeping. Since the internet revolution and the mobile revolution, financial technology has grown explosively. Originally, FinTech referred to computer technology applied to the back office of banks or trading firms. It is now described as a broad variety of technological interventions into personal and commercial finance.

Before proceeding to see what type of disruption can be caused by the emerging opportunities of FinTech, let us first look at the existing legal framework in Mauritius.

Legal framework

The Bank of Mauritius and the Financial Services Commission are the two main regulatory bodies in the Mauritian financial services sector. The Bank of Mauritius regulates the banking sector and the Financial Services Commission regulates non-banking financial services. Under Mauritian law, contracts to buy and sell are governed by the Civil Code. For the operational and regulatory aspects, we turn to the Banking Act, the Financial Services Act and the Securities Act.

This has worked very well so far; however, the emergence of FinTech with new technology and innovation aims to compete with traditional financial methods in the delivery of financial services. It is clear that FinTech will ultimately transform and revolutionise the Mauritian financial landscape.

Let's face it, apart from always boasting about our beautiful country, we Mauritians have always been proud of our booming economy. We have always wanted to lead the way in the fields of finance and technology and now is definitely the time for us to start making a move and see how to accommodate the global phenomenon that is called FinTech.

This situation is both a challenge and an opportunity. A challenge to make financial regulation and reporting more transparent, efficient and effective; but also an opportunity to apply the innovative FinTech prototypes and big data analytics to regulation and compliance.

Why is FinTech disruptive?

Disruption vs Innovation

With the emergence of FinTech, the buzz these days is that FinTech is "disruptive".

If one stops and ponders over the question, one has to wonder whether the word "disruptive" is not just a new way of saying "competitive".

The innovation or disruption brought by FinTech is looking to take market shares away from Financial Institutions (FIs) and provide more options to consumers and commercial customers that are either less expensive, faster, more convenient, more efficient, outside traditional banking channels, a more personalised experience, or may be even all of these. At this point, we have to ask ourselves whether this is really disruption or just healthy competition which spurs on innovation in all competitors – whether new or old.

Dear Maryam,

I can help you for this part of your question that links innovation to measures. The Company Innovative Leadership measures through different metrics innovative leadership. It is suitable also for product, industry and country level, so it might be useful for fintech. In attachments are two articles on the topic.

Article Measuring the Bulgarian IT Sector Innovations Capabilities T...

Article Company Innovative Leadership Model

BR

Zornitsa

Maryam Irfan

If i understood you want specific measures for fintechs. We made a generic study in Brazilian market and have found some caracteristics.

Only a few companies we studied was fintechs.

The informations we had found some that make sence are:

Burn Rate;

Return on Customer; (not %) Objective i foun more than one way they do that measure

And algo some tradicional measures.

Best Regards

Daniel Penz

Rudi Darson Olivier Serrat, Abdulkadir Abdullahi, Zornitsa Yordanova, Daniel Penz : Thanku so much everyone for your valuable feedback. A great appriciation and humble regards fo everbody. I found it a great platform for learning and sharing knowledge and ideas.

Hi Rudi Darson and Olivier Serrat,

Big thanks for your opinons. I strongly agree with both of you, that i need to decide the field first. Actually, I have decided and want to see the "fintech payment industry and how it is redefining/impacting the banking payment industry". Most likely, this would be the disruption aspect of fintech payment because banks payment sector has been greatly affected by these fintech payment firms. Indeed, I want to develop a frameowrk based on this question. SO, it would be great if I would be able to get some ideas from industry experts. I am a phd student and involved recently in this topic.