The transition to FinTech in developing economies: necessity and pathways

Purpose The purpose of this study is to analyze the way of the Financial Technology (FinTech) transition, thus helping policymakers direct the transition. In this regard, it focused on paytech, insurtech and wealthtech. Design/methodology/approach This study uses a qualitative case study based on document analysis and expert interviews to investigate the FinTech transition phenomenon and identify the factors affecting the way of transition. In this regard, this study focused on Iran. Findings The findings show that the transition path of paytech was of a technological substitution, the transition path of wealthtech was of a reconfiguration and the transition path of insurtech was of a transformation. Furthermore, we identified three factors that determined the type of transition: provision of technological infrastructure, industry incumbents’ support for innovative financial services and citizens’ reception of innovative services. Originality/value This article contributes to the literature by studying FinTech transition using a process approach, focusing on its sub-branches. It also presented a new approach to studying socio-technical transition in a field where the speed of change is high and the life of innovations is short. This study focuses on how actors encounter numerous technological developments in the long term and analyzes the transition based on actors’ institutionalized and repetitive behavior.