Performance measurement for fintech company
Authors
-
Pham Phat Tien
pptien@ctu.edu.vn
Can Tho University, Can Tho City, VNhttps://orcid.org/0000-0001-9472-5878
- Nguyen Thi Huyen My
Can Tho University, Can Tho City, VNDOI:
10.46223/HCMCOUJS.econ.en.13.1.2100.2023Keywords:
fintech; finance; performance; performance measurement; the balanced scorecardJEL Classification:
O30; G20Abstract
This paper proposes a frame measure for evaluating the fintech company’s performance. Based on the existing publications of multi-dimensional approaches to performance measurement and the fintech company, the study is conducted as a review article. The Balanced Scorecard is considered a suitable approach for the highest citations and application capacity in various kinds of firms. With the combination of the Balanced Scorecard and the highlighted characteristics of the fintech company, the frame measure is proposed for evaluating the fintech company’s performance. In detail, the fintech strategy map and four perspectives of performance with twenty-three measurements are proposed. The study provides the framework for the next quantitative studies that regard the estimation of the relationship between fintech performance and conventional banks. The new evidence of the Balanced Scorecard application for the fintech company is a new kind of firm in the digital era.Downloads
Download data is not yet available.References
Al-Alawi, A. I. (2018). Using balanced scorecard in measuring the performance of online banking: Cultivating strategic model map in financial sector-case of Bahrain. Journal of Internet Banking and Commerce, 23(2), 1-26.
Al-Najjar, S. M., & Kalaf, K. H. (2012). Designing a balanced scorecard to measure a bank’s performance: A case study. International Journal of Business Administration, 3(4), 44-53. doi:10.5430/ijba.v3n4p44
Amedofu, M., Asamoah, D., & Agyei-Owusu, B. (2019). Effect of supply chain management practices on customer development and start-up performance. Benchmarking, 26(7), 2267-2285. doi:10.1108/BIJ-08-2018-0230
Arner, A., Arner, D. W., Barberis, J., & Buckley, R. P. (2015). The evolution of FinTech: A new post-crisis paradigm? (UNSW Law Research Paper No. 2016-62). Retrieved May 20, 2021, from http://hdl.handle.net/10722/221450
Beck, T. (2012). The role of finance in economic development: Benefits, risks, and politics. In D. Muller (Ed.), The Oxford handbook of capitalism (pp. 161-203). doi:10.1093/oxfordhb/9780195391176.013.0007
Bezhovski, Z. (2016). The future of the mobile payment as electronic payment system. European Journal of Business and Management, 8(8), 127-132.
Bonabello, A. (2018). An innovative valuation method for scalable newcos: The BizPlace model. Retrieved May 20, 2021, from https://www.bizplace.it/wp-content/uploads/2018/11/The-BizPlace-valuation-model-.x77896.pdf
Brignall, T. J., Fitzgerald, L., Johnston, R., & Silvestro, R. (1991). performance measurement in service businesses. Management Accounting, 69(10), 34-36.
Buchak, G., Matvos, G., Piskorski, T., & Seru, A. (2018). Fintech, regulatory arbitrage, and the rise of shadow banks. Journal of Financial Economics, 130(3), 453-483. doi:10.1016/j.jfineco.2018.03.011
Chow, C. W., Haddad, K. M., & Williamson, J. E. (1997). Applying the Balanced Scorecard to small companies. Management Accounting, 79(2), 21-27.
Cross, K., & Lynch, R. (1989). Accounting for competitive performance. Journal of Cost Management, 3(1), 20-28.
Da Cruz Caria, P. (2017). FinTech: An explorative study into the characteristics of their business models. Vrije Universiteit Amsterdam. doi:10.13140/RG.2.2.28224.53767
Damodaran, A. (2009). Valuing young, start-up and growth companies: Estimation issues and valuation challenges. SSRN Electronic Journal, doi:10.2139/ssrn.1418687
Das, S. R. (2019). The future of fintech. Financial Management, 48(4), 981-1007. doi:10.1111/fima.12297
Davis, S., & Albright, T. (2004). An investigation of the effect of Balanced Scorecard implementation on financial performance. Management Accounting Research, 15(2), 135-153. doi:10.1016/j.mar.2003.11.001
Demirguc-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2018). The global findex database 2017: Measuring financial inclusion and the fintech revolution. In The global findex database 2017: Measuring financial inclusion and the fintech revolution (pp. 1-151). doi:10.1596/978-1-4648-1259-0
Dorfleitner, G., Hornuf, L., Schmitt, M., & Weber, M. (2017). FinTech in Germany. In FinTech in Germany. Cham, Switzerland: Springer.
Fitzgerald, L., Johnston, R., Brignall, T. J., Silvestro, R., & Voss, C. (1991). Performance Measurement in Service Businesses. London, UK: CIMA.
Gautreau, A., & Kleiner, B. H. (2001). Recent trends in performance measurement systems - The balanced scorecard approach. Management Research News, 24(3/4), 153-156. doi:10.1108/01409170110782793
Giannopoulos, G., Holt, A., Khansalar, E., & Cleanthous, S. (2013). The use of the balanced scorecard in small companies. International Journal of Business and Management, 8(14), 1-22. doi:10.5539/ijbm.v8n14p1
Gomber, P., Koch, J. A., & Siering, M. (2017). Digital finance and FinTech: Current research and future research directions. Journal of Business Economics, 87(5), 537-580. doi:10.1007/s11573-017-0852-x
Haddad, C., & Hornuf, L. (2019). The emergence of the global fintech market: Economic and technological determinants. Small Business Economics, 53(1), 81-105. doi:10.1007/s11187-018-9991-x
Hasan, R., & Chyi, T. M. (2017). Practical application of balanced scorecard - A literature review. Journal of Strategy and Performance Management, 5(3), 87-103.
International Monetary Fund and World Bank. (2019). Fintech: The experience so far. Retrieved May 20, 2021, from International monetary fund and World Bank website: https://www.imf.org/en/Publications/Policy-Papers/Issues/2019/06/27/Fintech-The-Experience-So-Far-47056
Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 83(7/8), 71-79.
Kaplan, R. S., & Norton, D. P. (1996). Strategic learning & the balanced scorecard. Strategy & Leadership, 24(5), 18-24. doi:10.1108/eb054566
Kaplan, R. S., & Norton, D. P. (2000). Having trouble with your strategy? Then map it. Harvard Business Review, 78(5), 167-176.
Karsen, M., Chandra, Y. U., & Juwitasary, H. (2019). Technological factors of mobile payment: A systematic literature review. Procedia Computer Science, 157(1), 489-498. doi:10.1016/j.procs.2019.09.004
Keegan, D. P., Eiler, R. G., & Jones, C. R. (1989). Are your performance measures obsolete? Management Accounting, 70(12), 45-50. doi:10.1177/004057368303900411
Kim, Y., Park, Y. J., & Choi, J. (2016). The adoption of mobile payment service for “Fintech.” International Journal of Applied Engineering Research, 11(2), 1058-1061.
KPMG. (2015). H2 Ventures KPMG FinTech 100: Announcing the world’s leading FinTech innovators for 2015. Retrieved May 20, 2021, from KPMG website: https://home.kpmg.com/xx/en/home/insights/2015/12/ventures-kpmg-FinTech-fs.html
Laitinen, E. K. (2002). A dynamic performance measurement system: Evidence from small Finnish technology companies. Scandinavian Journal of Management, 18(1), 65-99. doi:10.1016/S0956-5221(00)00021-X
Le, T. T., & Le, H. N. (2018). Fintech for promoting financial inclusion in Vietnam: Fact findings and policy implications. Business & Social Sciences Journal, 3(1), 12-20.
Lee, I., & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business Horizons, 61(1), 35-46. doi:10.1016/j.bushor.2017.09.003
Malagueño, R., Lopez-Valeiras, E., & Gomez-Conde, J. (2018). Balanced scorecard in SMEs: Effects on innovation and financial performance. Small Business Economics, 51(1), 221-244. doi:10.1007/s11187-017-9921-3
Mantel, B. (2001). E-money and E-commerce: Two alternative views of future innovations. In Chicago fed letter. doi:10.2139/ssrn.263781
Marr, B., & Schiuma, G. (2003). Business performance measurement - past, present and future. Management Decision, 41(8), 680-687. doi:10.1108/00251740310496198
Martunis, A., Dalimunthe, R., Amalia, K., Juanita, J., Syahputra, H., Adam, M., & Masyudi, M. (2020). Adaptation of the balanced scorecard model to measure performance of the departments at Dr Zainoel Abidin Regional General Hospital, Banda Aceh. Journal of Modelling in Management, 15(2), 365-379. doi:10.1108/JM2-09-2018-0149
Meyliana, M., Fernando, E., & Surjandy, S. (2019). The influence of perceived risk and trust in adoption of FinTech services in Indonesia. CommIT (Communication and Information Technology) Journal, 13(1), 31-37. doi:10.21512/commit.v13i1.5708
Miao, M., & Jayakar, K. (2016). Mobile payments in Japan, South Korea and China: Cross-border convergence or divergence of business models? Telecommunications Policy, 40(2/3), 182-196. doi:10.1016/j.telpol.2015.11.011
Mio, C., Costantini, A., & Panfilo, S. (2021). Performance measurement tools for sustainable business: A systematic literature review on the sustainability balanced scorecard use. Corporate Social Responsibility and Environmental Management, 29(2), 367-384. doi:10.1002/csr.2206
Navaretti, G. B., Calzolari, G., Mansilla-Fernandez, J. M., & Pozzolo, A. F. (2018). Fintech and Banking. Friends or Foes? Retrieved May 20, 2021, from SSRN website: https://ssrn.com/abstract=3099337
Neely, A., Adams, C., & Kennerley, M. (2002). The performance prism: The scorecard for measuring and managing business success. Cranfield School of Management, 159-160. doi:10.1108/eb016623
Neely, A., Gregory, M., & Platts, K. (1995). Performance measurement system design: A literature review and research agenda. International Journal of Operations and Production Management, 15(4), 80-116. doi:10.1108/01443579510083622
Paulet, E., & Mavoori, H. (2019). Conventional banks and Fintechs: How digitization has transformed both models. Journal of Business Strategy, 41(6), 19-29. doi:10.1108/JBS-06-2019-0131
Puschmann, T. (2017). Fintech. Business & Information Systems Engineering, 59(1), 69-76. doi:10.1007/s12599-017-0464-6
Ratnaningrum, Aryani, Y. A., & Setiawan, D. (2020). Balanced scorecard: Is it beneficial enough? A literature review. Asian Journal of Accounting Perspectives, 13(1), 65-84. doi:10.22452/ajap.vol13no1.4
Research and Markets. (2019). Global Fintech Market (2018-2023) - Market Set to Reach USD 305.7 billion by 2023. Retrieved May 20, 2021, from Research and Markets website: https://www.globenewswire.com/news-release/2019/04/09/1801702/0/en/Global-Fintech-Market-2018-2023-Market-Set-to-Reach-USD-305-7-billion-by-2023.html
Rompho, N. (2018). Operational performance measures for startups. Measuring Business Excellence, 22(1), 31-41. doi:10.1108/MBE-06-2017-0028
Saksonova, S., & Kuzmina-Merlino, I. (2017). Fintech as financial innovation - The possibilities and problems of implementation. European Research Studies Journal, 20(3A), 961-973. doi:10.35808/ersj/757
Salamzadeh, A., & Kesim, H. K. (2015). Startup companies: Life cycle and challenges. 4th International conference on employment, education and entrepreneurship (EEE). doi:10.13140/RG.2.1.3624.8167
Shim, Y., & Shin, D. H. (2016). Analyzing China’s Fintech industry from the perspective of actor-network theory. Telecommunications Policy, 40(2/3), 168-181. doi:10.1016/j.telpol.2015.11.005
Shin, S., & Lee, W. J. (2014). The effects of technology readiness and technology acceptance on NFC mobile payment services in Korea. Journal of Applied Business Research, 30(6), 1615-1626. doi:10.19030/jabr.v30i6.8873
Singh, S., Olugu, E. U., Musa, S. N., & Mahat, A. B. (2018). Fuzzy-based sustainability evaluation method for manufacturing SMEs using balanced scorecard framework. Journal of Intelligent Manufacturing, 29(1), 1-18. doi:10.1007/s10845-015-1081-1
Spender, J. C., Corvello, V., Grimaldi, M., & Rippa, P. (2017). Startups and open innovation: A review of the literature. European Journal of Innovation Management, 20(1), 4-30. doi:10.1108/EJIM-12-2015-0131
Szmigiera, M. (2020). Fintech - Statistics & Facts. Retrieved May 20, 2021, from Statista website: https://www.statista.com/topics/2404/fintech/
Thakkar, J., Deshmukh, S. G., Gupta, A. D., & Shankar, R. (2007). Development of a balanced scorecard: An integrated approach of Interpretive Structural Modeling (ISM) and Analytic Network Process (ANP). International Journal of Productivity and Performance Management, 56(1), 25-59. doi:10.1108/17410400710717073
Thakor, A. v. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41(1), 1-13. doi:10.1016/j.jfi.2019.100833
van Loo, R. (2018). Making innovation more competitive: The case of fintech. UCLA Law Review, 65(1), 232-279.
You, C. (2018). Recent development of FinTech regulation in China: A focus on the new regulatory regime for the P2P Lending (Loan-based Crowdfunding) Market. Capital Markets Law Journal, 13(1), 85-115. doi:10.1093/cmlj/kmx039
Zavolokina, L., Dolata, M., & Schwabe, G. (2016). The FinTech phenomenon: Antecedents of financial innovation perceived by the popular press. Financial Innovation, 2(1), 1-16. doi:10.1186/s40854-016-0036-7
Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. N. (2018). From FinTech to TechFin: The regulatory challenges of data-driven finance. New York University Journal of Law & Business, 14(2), 393-446.
Downloads
Received: 23-11-2021Accepted: 26-01-2022Published: 18-10-2022Statistics Views
Abstract: 1122 PDF: 1438How to Cite
Tien, P. P., & My, N. T. H. (2022). Performance measurement for fintech company. HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, 13(1), 169–184. https://doi.org/10.46223/HCMCOUJS.econ.en.13.1.2100.2023License
Copyright (c) 2022 Pham Phat Tien; Nguyen Thi Huyen My

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
- Nguyen Thi Huyen My
