Determination of Holistic Fintech Dimensions and Sub-Dimensions Framework

Objective: FinTech, as an emerging industry characterized by innovation and agility, presents significant challenges for policymakers and regulatory authorities in implementing effective governance. Therefore, a comprehensive and precise determination of FinTech dimensions is essential for efficient regulation. Given the existing research gap concerning multi-level and comprehensive dimensions of FinTech, this study aims to review existing literature on FinTech dimensions and propose an integrated framework encompassing its dimensions and components.
Methodology: A mixed-methods approach combining qualitative and quantitative methods was adopted. In the qualitative phase, a systematic literature review and content analysis were conducted on studies retrieved from reputable databases such as Google Scholar, ScienceDirect, ResearchGate, and others, using keywords such as Fintech, Financial Technology, Fintech Governance, Fintech Dimensions, and Fintech Components. The primary dimensions and their corresponding components were identified, extracted, and classified to maximize categorization and minimize overlaps. In the quantitative phase, the proposed framework, dimensions, and components were validated using the fuzzy Delphi method and Confirmatory Factor Analysis (CFA). For the fuzzy Delphi method, the opinions of 15 experts were collected using a standard questionnaire, and subsequent calculations were performed in Excel. For Confirmatory Factor Analysis, opinions of 220 experts were gathered, and further analyses were conducted in SPSS. The experts were selected through random sampling from professionals in fields such as Industrial Management, IT Management, Strategic Management, Financial Management, Accounting, Public Administration, Computer Engineering, Electrical Engineering, and Industrial Engineering. All participants held at least a master’s degree and had a minimum of five years of managerial or executive experience in the Fintech industry.
Findings: Based on a literature review and expert validation, three main dimensions with eight corresponding components were identified: Business (including companies and business models), Technical (including technology, tools/equipment, and products/services), and Regulation and Supervision (including Islamic rules, regulations, and supervision). The proposed framework, comprising these three dimensions and eight components, was approved by the experts.
Conclusion: Identifying Fintech dimensions and sub-components is essential for achieving effective Fintech governance. The validated framework provides a comprehensive structure that addresses several key aspects. First, previous Fintech studies lacked sufficient and integrated classification, as most examined the topic from a single perspective, resulting in repetitive and fragmented categorizations. Second, in the early stages of Fintech development, technical issues dominated due to tech-driven innovations such as advancements in data storage and infrastructure. However, with the introduction of modern governance approaches, such as regulatory governance, attention has shifted toward regulatory issues, making regulation an essential dimension alongside business and technical dimensions. Third, the innovative nature of the proposed framework integrates previous research and introduces a novel classification of Fintech dimensions. Fourth, the separate inclusion of Islamic rules highlights the importance of an Islamic approach to regulation and supervision, making the framework locally adaptable for Islamic countries. Finally, the framework helps policymakers and regulatory authorities adopt a holistic and comprehensive perspective on Fintech while providing clarity to the industry itself. By adhering to this framework, legal authorities and the Fintech industry can clearly define their mutual rights and responsibilities. While the framework is globally compatible with the Fintech industry, the inclusion of Islamic regulations also addresses the specific requirements of Islamic countries, including Iran.