The dark side of impact fintech ecosystems: unstraining the “tug of war” among stakeholders

Purpose This study aims to investigate the underlying tensions that constrain the potential of fintechs to address inequality and drive sustainable change in impact ecosystems. It focuses on how tension among key stakeholders create an invisible “tug of war” that undermines socio-environmental value creation and dissemination. Design/methodology/approach This research adopts a qualitative approach based on semi-structured interviews with 12 founders and co-founders from ten Brazilian impact fintechs. The authors analysed tensions between fintechs and six main stakeholders within the ecosystem: investors, customers, traditional financial institutions, regulators, supporting organizations and technology providers. Findings This study reveals that misalignments in interests, values and priorities across ecosystem stakeholders hinder innovation and limit effective value co-creation. These tensions manifest in various forms, contributing to persistent friction and reducing the overall impact potential of fintech initiatives. The findings also highlight the need for mechanisms to attenuate these tensions, such as trust-building, regulatory simplification and enhanced collaboration among stakeholders. Originality/value Drawing on stakeholder theory and paradox theory, this study contributes to the literature by advancing a “tug-of-war” perspective for understanding stakeholder tensions within impact fintech ecosystems. It shifts the focus from purely opportunity-driven narratives to include structural frictions, offering both theoretical advancement and actionable insights for practitioners and policymakers seeking to strengthen ecosystem dynamics.