Exploring Top 7 FinTech Models

pgdm in fintech course

In a world driven by digital innovation, financial technology (FinTech) has emerged as a transformative force, revolutionising the banking landscape and changing how we transact. As time continues to progress, FinTech is taking over the globe, converting traditional banking and transactional systems into convenient and efficient ones.

The dynamic fintech industry continues to evolve and advance, with 2023 poised to witness significant growth. Projections indicate that the fintech market is expected to expand and reach an impressive valuation of $174 billion in 2023! 

As FinTech continues gaining momentum, it transforms how we handle our money and creates new economic inclusion and financial empowerment opportunities. 

In this article, we’ll examine some of the top FinTech models reshaping the financial landscape and empowering individuals and businesses. We will also consider how to make a successful career in FinTech.

Top Seven Business Models for FinTech Companies

FinTech companies have introduced a myriad of revolutionary models that cater to the varied requirements of individuals and businesses alike. Let’s look at the top seven business models propelling the FinTech industry forward

Digital Banking 

This scenario is where traditional brick-and-mortar banks transition entirely to the digital realm, eliminating physical offices, bank tellers, and mail. Challenger banks like N26, Revolut, Tinkoff, Chime, etc., have exemplified this shift, providing straightforward individual and business bank accounts through a fully digital infrastructure. Customers can enjoy reduced rates and improved benefits by leveraging staff and real estate cost savings.

P2P Lending

Peer-to-peer (P2P) lending serves as a means for individuals to borrow money directly from other individuals, while businesses can also utilise this model to secure loans from other businesses. This approach facilitates lending for investors, who can potentially achieve superior returns compared to traditional debt markets.
FinTech companies can develop platforms that connect borrowers and lenders, charging fees based on repayment transactions.

Small Ticket Loans

FinTech companies like Affirm are addressing the obstacles the challenger banks and lenders face in underwriting smaller loans, which are often avoided due to low margins and high costs. These companies enable quick purchases without authentication or credit card details by offering impulse buy mechanisms, like buy now & pay later (BNPL) and one-click buy buttons.

These loans are often interest-free, with revenue generated through customer data sharing with original equipment manufacturers (OEMs), who benefit from increased affordability. Customised marketing offers are crafted using algorithms considering customer demographics, and data sharing can be seen as the "interest" on loan.

Alternative Credit Scoring

In certain instances, self-employed individuals with reliable income face challenges in meeting traditional bank loan requirements. This is due to stringent and outdated credit scoring criteria. 

FinTech companies are adopting a fresh approach by leveraging alternative data, such as social signals and scoring within comparable loan groups, combined with AI algorithms. This approach simplifies lending decisions and allows banks to potentially avoid loan recovery by identifying negative profiles before disbursing loans.

Digital Wallets

Digital wallets combine the functionalities of a simplified bank account and a payment gateway. Users can load virtual money into their wallets and utilise it for online or offline transactions with merchants accepting digital wallets. 

This business model offers convenience to users in their transactions, all while charging a small fee. These digital wallet providers generate revenue from merchant discount rates (MDR) and the float earned from unpaid balances. Popular wallet examples include Venmo, Square Cash, Apple Pay and Google Wallet.


Neo-banking is a Fintech concept focused on creating agile and cost-effective digital platforms known as "neo-banks." These neo-banks aim to provide faster, more efficient, and adaptable financial services. Neo-banks' objectives can vary, with some focusing on online bank accounts while others assist in saving and budgeting.

API-based Bank-as-a-service Platform

Based on Application Programming Interface (APIs), the bank-as-a-service platform is a backend infrastructure that hosts independent FinTech startups and seamlessly integrates them with traditional banks. This enables financial institutions to launch products and expand into new markets efficiently. 

Non-banks can also leverage these platforms to introduce additional financial offerings and broaden their market presence cost-effectively.


From the rise of digital banking and P2P lending to the convenience of digital wallets and the innovation of neo-banks, FinTech companies are revolutionising how we access, manage, and invest our finances. With the potential for substantial growth, pursuing a career in FinTech has never been more enticing. 

Imarticus offers top-notch courses in FinTech by the Delhi School of Business, providing students with the knowledge and skills required for thriving in this dynamic industry. The course has future-oriented specialisation, an industry-aligned curriculum, expert guidance, and many more benefits to strengthen your career in the rapidly exploring FinTech domain. 

Embrace the future of finance and embark on a journey that merges innovation, technology, and financial expertise with the FinTech courses offered by Imarticus!

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