Motives to Form Alliances for Digital Innovation: The Case of Banks and Fintechs

Holotiuk, Friedrich; Klus, Milan Frederik; Lohwasser, Todor Stefan; Moormann, Jürgen

doi:10.18690/978-961-286-170-4.20

Cited by 12 publications

(20 citation statements)

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“…These results shed new light on the problem of bank-fintech company interconnections, as studied by Holotiuk et al (2018) and Lacasse et al (2016), among others. The coefficients of the Lerner index in our estimations lead us to conclude that in developed economies, banks with high market power treat fintech companies as a source of interesting ideas to boost effectiveness or mobile services quality.…”

Section: Discussionsupporting

confidence: 53%

“…Lacasse et al (2016) underline the potentially disruptive power of fintech companies on financial intermediaries and discuss the fintech phenomenon as a competitive force against banks. Conversely, Holotiuk et al (2018) show the potential motivation for and gains from bank-fintech company cooperation. In a complementary study, Jagtiani and Lemieux (2018) show that wide access to data and alternative data that may be used in credit scoring in the modern economy, can determine the creation of fintech companies.…”

Section: Introductionmentioning

confidence: 99%

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The Rise of Fintech: A Cross-Country Perspective

Kowalewski

Pisany

2020

SSRN Journal

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Section: Discussionsupporting

confidence: 53%

Section: Introductionmentioning

confidence: 99%

The Rise of Fintech: A Cross-Country Perspective

Kowalewski

Pisany

2020

SSRN Journal

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“…The resulting scope of the bank matches with the bank models of in-house developers and native digital banks that seek efficiency through fintechs (Krasonikolakis et al, 2020;Tanda and Schena, 2019). These entities improve their services and structures by adopting fintechs as complementary to traditional operations (Holotiuk et al, 2018;Kilu et al, 2019;Dorfleitner and Hornuf, 2019, p. 9;Blackstad and Allen, 2018). The logic driving this transformation is to balance customer-and technology-oriented innovations (Anand and Mantrala, 2019).…”

Section: Discussionmentioning

confidence: 99%

“…The framework addresses the research gap regarding the conceptual foundations for the banks' governance transformed through fintechs (Tanda and Shena, 2019;Zhao et al, 2019). Extant studies predominantly focus on identifying the business models of fintechs as well as the economic efficiency in banking from technology-based products and services (Ayadi, 2019;Holotiuk et al, 2018;MacDonald et al, 2016). However, the bank transformation related with the technological change is much less explored, particularly from the fundamental perspective of reshaping the scope of activities (organizational boundaries).…”

Section: Contribution To Theorymentioning

confidence: 99%

Transforming the scope of the bank through fintechs: toward a modularized network governance

Łasak

Gancarczyk

2021

JOCM

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PurposeThe aim of this paper is to develop a theoretical framework of the transformation of the bank's scope driven by fintechs.Design/methodology/approachThe conceptual foundations for a comprehensive transformation of the bank governance through financial technologies (fintechs) are underexplored. In order to develop such foundations, the authors adopt transaction cost economics (TCE), the concepts of external enablers and a modular organizational design, as well as a systematic literature review.FindingsThe results point to three scenarios of the banks' scope, depending on the adopted technological mechanisms and related effects that change the characteristics of organizational activities, justifying new bank boundaries. The most advanced application of fintechs results in a modularized network scenario leading to the emergence of financial ecosystems.Research limitations/implicationsThe proposed micro-perspective of decisional rules in an individual organization is unique in the current literature that predominantly focuses on the banking sector at large. The identified scenarios are valuable for solid theoretical and empirical grounding and can be further exploited in decision simulations and empirical studies.Practical implicationsThe proposed theoretical framework points to the rationales and consequences of adopted technologies for the boundaries of a bank organization.Originality/valueThis paper provides three contributions to the literature on technology-driven transformations of organizations with a focus on banks. First, the authors elaborate a theoretical framework for establishing the bank's boundaries in response to the expansion of financial technologies. Second, the authors add to the knowledge accumulation in the area of organizational transformations based on the ICT adoption, in particular, to the literature on the modular organizational design. Third, the authors contribute to the decision-maker practice by proposing the alternative options of banks' scope transformed through fintechs.

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“…Specifically about the financial industry, it is dealing with a paradigm shift process with new consumer demands, customization of financial products and services, and the emergence of new technologies and new business models based on digital transformation (Fonseca & Meneses, 2020). In this context, large organizations as banks cooperate with fintechs that are interested in the support in regulatory issues and market access, while fintechs cooperate with banks through customized solutions based on emergent technologies that allow making a digital transformation (Holotiuk, Klus, Lohwasser, & Moormann, 2018) (Table 1). Firms with a prospecting strategy often look for opportunities to improve their knowledge, bargaining power, and global capabilities.…”

Section: Coopetition Among Large Organizations and Startupsmentioning

confidence: 99%

The Interplay of Competition and Cooperation in the Innovation Process Between Established Organizations and Startups

Mail

Verschoore

Monticelli

2021

IJBA

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This study aims to analyze the dynamic process of coopetition between an established organization and startups to develop innovation. We conducted an exploratory, qualitative study, based on Grounded Theory. The Grounded Theory allows the development of a theory emerging from data that is simultaneously collected and analyzed, determining the categories to observe the core questions. It can be divided into two stages: initial coding (open and axial coding) and focused coding. In the open coding, are defined categories and subcategories that are reviewed in the axial coding to generate more precise explanations? Along with the focused coding, the data organized from initial coding is categorized for an analytical understanding of the phenomena. In the first stage, we conducted eight semi-structured interviews with a homogeneous sample. An interview guide addressing coopetition factors was developed. As a result, we developed a framework from the theoretical background. This framework was evaluated by three executives and professors with experience in coopetition between large corporations and startups. The snowball technique was used to recruit the participants. Our findings reveal that different factors – market increase, strategic alignment, and technological alignment – are associated. We observed that coopetition not only helps in developing new markets but also in understanding the user demands of these markets. Thus, coopetition is an accelerator of innovation, since it allows the identification of the resource complementarity and technological scale gains.

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Motives to Form Alliances for Digital Innovation: The Case of Banks and Fintechs

Cited by 12 publications

References 0 publications

The Rise of Fintech: A Cross-Country Perspective

The Rise of Fintech: A Cross-Country Perspective

Transforming the scope of the bank through fintechs: toward a modularized network governance

The Interplay of Competition and Cooperation in the Innovation Process Between Established Organizations and Startups

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