The transition from traditional banking to mobile internet finance: an organizational innovation perspective - a comparative study of Citibank and ICBC

Abstract

The development of Financial Technology (FinTech) in areas such as mobile Internet, cloud computing, big data, search engines, and blockchain technology have significantly changed the financial industry. FinTech is expected to overturn the traditional banking business model, forcing banks to upgrade and transform. This study adopts a comparative case study method to contrast and analyze the Industrial and Commercial Bank of China (ICBC) and Citibank. It analyzes the strategies, organizations, HR systems, and product innovations adopted by these two banks in response to the impact of FinTech. This paper proposes an "electric vehicle" mode for ICBC and an "airplane mode" for Citibank. Further, it describes the difficulties encountered by the Chinese banking industry and proposes some feasible ways to upgrade. "Technology power" will become the core competitive concept for the financial institutions of the future.

Panel Econometric Analysis on Mobile Payment Transactions and Traditional Banks Effort toward Financial Accessibility in Sub-Sahara Africa

“…This partly debunks on-going debates about the negative effects of mobile payment on traditional financial institutions survival [3,39]. Rather, this provides deeper insight into the positive aspects technology development towards the financial landscape in the region [3,40,41]. While recent studies [3,15,39,42] point to the singular role of mobile payment in financial inclusion in the region, the result with coefficient of 0.582 and an R-square of 0.338 indicates that the increase in mobile payment transactions also significantly affect traditional banks number of formal account ownership numbers in the region.…”

“…Manifest change between the first and second models is the significant improvement in the R-square values of 0.435, 0.411, and 0.479, respectively with the mediating role of population growth. Mobile phone penetration in the region is on the rise significantly alongside the growing population making it easier for mobile payment providers to reach a wider market scope [20,40,44]. Further, it broadens the undesired scope of traditional banks, but with the fierce competition from mobile payment providers in both desired and undesired terrains of traditional banks, investment decisions in marketing efforts, new ATMs, and new bank branches are justified.…”

Blockchain in FinTech: A Mapping Study

“…The full list of the selected papers can be seen in Table 1. Electrical Engineering in Japan [24] Software Engineering and Algorithms in Intelligent Systems [25] Accounting and Finance [26] Journal of Economics and Business [27] Production and Operations Management [28] Quality-Access to Success [29,30] European Business Organization Law Review [31] NMIMS Management Review [9] Strategic Change-Briefings in Entrepreneurial Finance [32] International Journal of Environmental Research and Public Health [33] Proceedings of The International Conference on Business Excellence [34] Technological Forecasting and Social Change [35] 2018 IEEE International Conference on Intelligence and Security Informatics (ISI) [36] Journal of Investment Management [37] Blockchain Technology: Platforms, Tools and Use Cases [38] Handbook of Blockchain, Digital Finance, and Inclusion, Vol 1: Cryptocurrency, Fintech, Insurtech, and Regulation [39] 2018 9th IFIP International Conference on New Technologies, Mobility, and Security (NTMS) [40] Journal of Money Laundering Control [41] Australian Feminist Studies [42] Internet Science, INSCI 2017 [43] Emerging Markets Finance and Trade [44] Financial and Credit Activity-Problems of Theory and Practice [45] 2018 6th International Symposium on Digital Forensics and Security (ISDFS) [46] Journal of Management Information Systems [47] Journal of Risk Finance [48,49] Review of International Business and Strategy [50] International Journal [51] Financial Innovation [52] Business Horizons [53] Enfoque UTE [54] Computer [55] Symmetry-Basel…”

“…Nowadays, Bitcoin block puzzles are solved at a minimum time of three seconds and a maximum of more than 50 minutes. Decreasing the complexity of PoW would diminish the time spent, but could lead up to blockchain forks if the block generation timeframe is very narrow [52]. Zook et al [62] point out that one of the solutions that some cryptocurrency exchanges and miners are coming up with is to charge higher fees in order to process the transactions quicker, and even include charges to cover risks that embrace slow exchange.…”

Banks and Fintechs: How to Develop a Digital Open Banking Approach for the Bank’s Future

“…Chen et al (2017) use the concept of technology power as technology is going to be the most relevant element in competition within banking.…”