The API Economy and Digital Transformation in Financial Services: The Case of Open Banking

Zachariadis, Markos; Özcan, Pınar

doi:10.2139/ssrn.2975199

Cited by 95 publications

(64 citation statements)

References 26 publications

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“…The restructuring of payments 5 flows has also facilitated the growth of e-commerce activity [34] and the adoption of online banking [21]. APIs have the potential to facilitate banking-as-a-platform innovations, and so create more personalized customer-centric experiences [48]. Recently, innovations supported by card payment services, mobile phones and location-based services have enabled entrepreneurs to challenge long-established banking models and infrastructures.…”

Section: Reconstructing the Flow Of Financial Information For Value Cmentioning

confidence: 99%

The Innovation Mechanisms of Fintech Start-Ups: Insights from SWIFT’s Innotribe Competition

Gozman

Liebenau

Mangan

2018

Journal of Management Information Systems

154

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The emergence of nascent forms of financial technology around the globe is driven by efforts to deconstruct and reimagine business models historically embedded within financial services. Entrepreneurial endeavors to this end are diverse. Indeed, the propensity towards complexity across the fintech landscape is considerable. Bridging as it does a diverse range of financial services, markets, innovations, industry participants, infrastructures and technologies. This study aims to improve the comprehension of the global fintech landscape. It is based on the analysis of start-ups who participated in SWIFT's Innotribe competition over a three-year period. We used cluster analysis to group 402 fintech start-up firms, and then selected representative cases to create a foundational understanding of the structure of the fintech landscape. We found that six clusters capture the variety of firms and their activities. The main findings of this work are: (1) the development of fintech clusters to classify core services, business infrastructures and underlying component technologies, which characterize the fintech landscape; (2) an analysis of how fintechs synthesize different technologies to restructure and coordinate flows of financial information through competitive and cooperative mechanisms of disintermediation, extension of access, financialization, hybridization and personalization; (3) an analysis of related strategies for value creation connected with the competitive and cooperative mechanisms that were identified. Collectively, our results offer new insights into the diversity and range of emergent innovations and technologies which are transforming the financial services industry worldwide.

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Section: Reconstructing the Flow Of Financial Information For Value Cmentioning

confidence: 99%

The Innovation Mechanisms of Fintech Start-Ups: Insights from SWIFT’s Innotribe Competition

Gozman

Liebenau

Mangan

2018

Journal of Management Information Systems

154

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“…Although outdated banks can technically offer these products themselves, their intertwining of front-office and back-office systems means that they lag behind in efficiency. They also have a much higher cost base and therefore would struggle for competitive prices [12].…”

Section: Resultsmentioning

confidence: 99%

New Approaches to Banking Business Models in the Digital Economy

Diakonova

Pakhnenko

Shevchenko

2019

VSDU

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The factors of the post-crisis development of the world banking system, the strengthening of the role of information technology in all industries, the increasing role of innovative Fintech intermediaries in the banking market encourage the management of banks to revise traditional business models and to form new approaches to managing the modern bank. In the article the authors aimed to investigate the impact of digitization on the choice of banking business model and the development of algorithm for estimating a bank's business model.Traditionally banks choose one of five business models: lending, high leverage, investment, fee, margin. Most operating banks opt for traditional models because the business environment requires it. However, maintaining the bank's competitiveness, enhancing its efficiency and resilience to financial imbalances is possible by building an innovative business model that takes into account the modern diffusion of information technology and the functioning of FinTech companies as an alternative to traditional banking business. Although nobody knows yet what will replace the current business model, there are currently three approaches to assimilating FinTech in banking: the Financial Control Center, Banking-as-a-Service, the Niche Bank. The choice of the banking business model and its transformation should be accompanied by an assessment of the bank's business model.Thus, an important component of banking management in an unstable environment is the analysis of the business model of the bank and its transformation in order to minimize the impact of possible negative effects of financial crises on the performance of the bank. The proposed algorithm for estimating a bank's business model includes 6 stages: preliminary assessment of the main components of the bank's business model; assessment of the business environment of the bank; stress testing of the viability of the bank's business model; evaluation of the bank's strategy; identification of key vulnerabilities to which the bank's business model is prone or likely to be vulnerable; and justification of the results and formation of effective conclusions.

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“…Full and long-term partners of banks will be aggregators of user information (for example, social networks and telecom operators) that provide access to external customer data in order to improve the accuracy of credit scoring, cross-selling, etc. [19]. The active formation of innovative competitive advantages, ensuring the strengthening and expansion of the bank's market position, is one of the basic principles on which bank marketing is based.…”

Section: Resultsmentioning

confidence: 99%

Main trends of development of banking innovation in the digital economy

Kuvaeva¹,

Serebrennikova²,

Shvedov³

2019

Proceedings of the International Scientific and Practical Conference on Digital Economy (ISCDE 2019)

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The article is devoted to the description of innovative technologies on the basis of which banking products (services) are created or their sales channels are formed. It is established that a number of banking innovations are just beginning to be used by Russian banks, and some have already become quite widespread. The introduction of innovations, as a market embodiment of a new idea, increases the competitiveness of banks and also makes it possible to survive in a complex economic environment.

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The API Economy and Digital Transformation in Financial Services: The Case of Open Banking

Cited by 95 publications

References 26 publications

The Innovation Mechanisms of Fintech Start-Ups: Insights from SWIFT’s Innotribe Competition

The Innovation Mechanisms of Fintech Start-Ups: Insights from SWIFT’s Innotribe Competition

New Approaches to Banking Business Models in the Digital Economy

Main trends of development of banking innovation in the digital economy

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