Triple-bottom-line impact analysis framework of fintech companies

Abstract

Financial institutions play a crucial role in the market economy. Banks act as intermediaries between savers and borrowers, decreasing information asymmetry and enabling investment. They play a crucial part in society by offering financial services to people and enabling corporate investment. Traditional bricks-and-mortar banks cannot sufficiently financially include all people – they particularly fail to reach the Bottom-of-the-Pyramid (BoP). Newly emerging financial technology companies – fintechs – have already started to fill the gap by providing services to the BoP, enabled by information and communications technology (ICT) and new business models. The triple-bottom-line (TBL) impact analysis of fintechs is a new, emerging research area. This article fills the gap in current literature by providing a proposed analytical framework with which to assess fintechs from a TBL-value-creation perspective. The article presents the benefits of the TBL Impact Analysis Framework of Fintechs based on findings from more than hundred currently operating fintechs and existing sustainable banking initiatives. The framework contains the direct and indirect TBL value creation elements of fintechs organized along their economic, social and environmental impact and can be used as a simple, yet effective assessment tool for analyzing the TBL impact of fintechs, helping to make TBL-related adjustments, improving upon currently offered solutions, or aiding in the design of financial new products with TBL value-creation elements.