ABSTRACT
Fintual is a Y-Combinator-backed Chilean FinTech that provides access to a balanced investment portfolio through an easy-to-use app. Since 2017, the firm has had a national regulatory license that allowed it to build and offer innovative investment funds. It was the first goal-based investment platform in Chile. Unlike traditional financial services in the country, Fintual’s technology allows clients to create several investment objectives in parallel, each with a different time horizon and risk with a lower commission rate. Its business model allowed it to grow consistently through word of mouth in Latin America. At the end of 2021, the company managed US$753 million in assets from 81,000 clients. This case builds on the business model and business model innovation (BMI) literature to explore how organizations develop mechanisms for creating, delivering, and capturing value, including the design activities that enable this process. The case of Fintual highlights some macro-level antecedents and firm-level determinants that enable an innovative business model to disrupt a highly developed industry.
