Business Model Innovation in Swedish FinTech Industry : A case Study of Klarna

Abstract: The financial industry has been greatly influenced by the Internet revolution and mobile technology, which has laid a solid foundation for innovation in the field of FinTech. However, we need to be concerned that the revolutionary digital technologies employed by FinTech companies can only be profitable if they can be brought to market with a suitable business model, which means that FinTech companies rely on their business logic, value network, and company position. Therefore, it is particularly important to adopt an efficient business model or even an innovative business model. In the FinTech industry, many innovative business models have emerged that can effectively generate value across a company’s numerous variables to build strong competitiveness. FinTech business models are often modifiable, flexible, and innovative. The generic business model innovation process consists of seven steps, namely Analysis, Ideation, Feasibility, Prototyping, Decision-making, Implementation, and Sustainability. In FinTech's business model innovation, two key points facilitate this process, which are the organizational structure and customer relationship management based on the Klarna case study.