Innovation In The Financial Retail Banking Industry Are Banks Taking Over Fintechs Or Are Fintechs Taking Over Banking

Author : Frederic Tronnier
Publisher : GRIN Verlag
Page : 54 pages
File Size : 41,7 Mb
Release : 2016-06-24
Category : Business & Economics
ISBN : 9783668245778

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Innovation in the financial retail banking industry. Are banks taking over Fintechs or are Fintechs taking over banking? by Frederic Tronnier Pdf

Bachelor Thesis from the year 2016 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,3, University of Frankfurt (Main) (Fachbereich für Wirtschaftsinformatik), language: English, abstract: The thesis focuses on how Fintechs are disrupting the financial retail banking industry and how banks react to these changes. In this context, challenges and opportunities of their actions will be analyzed and discussed. Furthermore, it will be derived how aspects of innovation influence the Fintechs success in this process and how innovation takes place in the financial industry in general. Finally, this thesis discusses the implications of the current situation for both Fintechs and banks, and identifies potential outcomes and consequences for all involved parties. Since the beginning of the 21st century and the spread of the internet whole industries have been transformed or became obsolete. Disruption in the form of digitalization has taken place in the music, book, media and movie industry. Online and mobile services, offered by start-ups and technology companies are changing one industry at a time. Retail-focused companies like Apple, Netflix, Google, Amazon and Twitter have changed the way people think and use music, films, books and media. They also changed the consumers’ general perception of good service, usability and of how companies are doing business. Despite all these improvements in our everyday life, the financial retail banking industry has remained relatively constant, even though it caused people to adapt to new circumstances, in the form of the Global Financial Crisis (GFC), resulting in a Global Recession and higher regulations for the industry. Since then, the industry missed the opportunity to regain the customers’ trust by changing their habits and improving their services. Instead, customers are increasingly unlikely to buy products or refer their bank but are increasingly prepared to leave their bank within the next six months. This state of stagnancy inside the financial retail banking industry seems to have changed. New entrants have caused uproar in the industry. Fintechs, an acronym for financial technology, are entering the retail market, forcing banks to adapt and innovate. Online and mobile banking services are now considered to be the future of financial retail banking. Fintechs threaten to take away customers by offering better and cheaper services with higher usability. As both the number of Fintechs and their customers increase, banks realize that Fintechs are going to be a threat for them.

Author : Luigi Wewege,Michael C. Thomsett
Publisher : Walter de Gruyter GmbH & Co KG
Page : 138 pages
File Size : 50,5 Mb
Release : 2019-12-02
Category : Business & Economics
ISBN : 9781547401598

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The Digital Banking Revolution by Luigi Wewege,Michael C. Thomsett Pdf

Emergent innovative financial technologies are profoundly changing the way in which we spend, move and manage our money, unlike ever before, and traditional retail banks are facing stiff competition. The global financial crisis in 2007–2009 led to large losses, and even the collapse of a significant number of established banks shaking the trust of financial customers worldwide. The Digital Banking Revolution is an insightful look at how financial technology and the rapid rise of financial technology companies have brought welcome changes offering flexibility to the banking industry. The book offers a unique perspective on the consumerization of retail banking services. It delves into the many changes that financial innovations have brought about in banking, the main financial disruptors, the new era of "banking on the go," and financial innovations from countries around the world before concluding with a discussion on the future of banking including optimizing structures, new strategies for business outcomes, and human resources in the digital era.

Author : Luigi Wewege
Publisher : Scribl
Page : 108 pages
File Size : 55,5 Mb
Release : 2017-02-14
Category : Business & Economics
ISBN : 9781365685880

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The Digital Banking Revolution by Luigi Wewege Pdf

Over the past decade financial service innovations have contributed to a completely new way in which customers can bank, threatening the status quo of traditional retail banks, and redefining a banking model which has been in place for generations. These new technological advancements have facilitated the rapid emergence of digital banking firms and FinTech companies, leading to established banks being forced to swiftly increase their pace of digital adoption to stay relevant and stop mass client attrition to these agile financial start-ups. These threats come at an inopportune time for banks due to mature markets currently experiencing stagnant growth. This coupled with decreasing profit margins due to the competitive pricing of new entrants, and financial customer loyalty becoming ever increasingly more tenuous.

Author : Luigi Wewege
Publisher : Createspace Independent Publishing Platform
Page : 204 pages
File Size : 48,7 Mb
Release : 2017-05-26
Category : Electronic
ISBN : 1546991468

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The Digital Banking Revolution by Luigi Wewege Pdf

For many years, retail banks have been secure, highly profitable businesses. However, recent industry disruption has come knocking at the door of these financial giants. The turning point was the global financial crisis experienced between the years 2007 and 2009 which not only led to large losses, and even the collapse of a significant number of established banks, but has shaken the trust of financial customers worldwide to their core. These factors, combined with the fact that banking has been relatively undisturbed for centuries, meant it was time for change, and that change has been the rapid rise of financial technology companies. Emergent innovative financial technologies are profoundly changing the way in which we spend, move and manage our money, unlike ever before. The digital transformation and its pace of change have been truly astounding, dramatically shifting customer behaviors and expectations of their financial service provider. Retail banks must now become positioned to fulfill their customers' every financial need, especially as the millennial generation is poised to soon command the largest purchasing power of any age group, and banks will need to become cognizant of this generation for a multitude of reasons.

Author : Alessandra Tanda,Cristiana-Maria Schena
Publisher : Springer
Page : 111 pages
File Size : 42,5 Mb
Release : 2019-07-30
Category : Business & Economics
ISBN : 9783030224264

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FinTech, BigTech and Banks by Alessandra Tanda,Cristiana-Maria Schena Pdf

This Palgrave Pivot analyses the evolution of strategies and business models adopted by financial operators that employ technological solutions to deliver financial products and services. The analysis is performed on a proprietary dataset built on different sources that highlight important differences in strategical approaches taken by FinTech companies, TechFin and BigTech, and banks (traditional and digital native). For each type, the authors underline their distinctive patterns, strengths and weaknesses. The main focus of the analysis in on the European market that is investigated also in the light of the difference and similarities with other markets (such as US and China). The unbundling and re-bundling of productive processes in finance, the treatment of information and the level of innovation in the customer relationship highlight the intense change that the banking activities of new financial services providers are currently dealing with, especially the retail segment. Despite the main international banks’ implementation of innovative strategical approaches to take advantage of the digitalization of business and cope with competition, so far the level of the disruption brought by FinTech is not fully understood or widespread. This holds especially true for the smaller banks: the latter need to take a proactive approach to individuate a business model able to satisfy the new customer needs and the competitive pressure that are destined to increase and further evolve. This book addresses this and would appeal to academics, researchers and students of banking, FinTech and financial innovation alongside policy makers, regulatory authorities, FinTechs and banks.

Author : Luigi Wewege
Publisher : Lulu.com
Page : 206 pages
File Size : 41,6 Mb
Release : 2017-05-27
Category : Business & Economics
ISBN : 9781365998348

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The Digital Banking Revolution, Second Edition by Luigi Wewege Pdf

How FinTech companies are rapidly transforming the traditional retail banking industry through disruptive financial innovation.

Author : Timothy King,Francesco Saverio Stentella Lopes,Abhishek Srivastav,Jonathan Williams
Publisher : Springer Nature
Page : 338 pages
File Size : 42,5 Mb
Release : 2021-10-31
Category : Business & Economics
ISBN : 9783030818357

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Disruptive Technology in Banking and Finance by Timothy King,Francesco Saverio Stentella Lopes,Abhishek Srivastav,Jonathan Williams Pdf

This book exemplifies the potential of FinTech to deliver important economic and societal gains, such as enhancing competition and financial inclusion to deliver tailored financial products and services at more affordable prices and at greater convenience. The emergence of FinTech directly challenges the business models of incumbent financial intermediaries like banks, which are adapting by developing their own FinTech offerings and partnering with FinTech and large technology firms. FinTech also constitutes both known and unknown risks to financial stability and challenges regulators to evaluate whether existing regulations are sufficient. The emergence of FinTech as a global phenomenon requires insightful cross-country analysis and different perspectives to evaluate its development and associated opportunities and challenges. This book will be of interest to practitioners, regulators and students of this essential enabling technology that is a major component of the Fourth Industrial Revolution.

Author : Luigi Wewege
Publisher : Lulu.com
Page : 166 pages
File Size : 50,7 Mb
Release : 2017-01-16
Category : Electronic
ISBN : 9781365685873

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The Digital Banking Revolution by Luigi Wewege Pdf

Over the past decade financial service innovations have contributed to a completely new way in which customers can bank, threatening the status quo of traditional retail banks, and redefining a banking model which has been in place for generations. These new technological advancements have facilitated the rapid emergence of digital banking firms and FinTech companies, leading to established banks being forced to swiftly increase their pace of digital adoption to stay relevant and stop mass client attrition to these agile financial start-ups. These threats come at an inopportune time for banks due to mature markets currently experiencing stagnant growth. This coupled with decreasing profit margins due to the competitive pricing of new entrants, and financial customer loyalty becoming ever increasingly more tenuous.

Author : Luigi Wewege
Publisher : Unknown
Page : 128 pages
File Size : 46,8 Mb
Release : 2017
Category : Electronic
ISBN : 3330038233

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The Digital Banking Revolution by Luigi Wewege Pdf

Author : James Deitch
Publisher : Walter de Gruyter GmbH & Co KG
Page : 279 pages
File Size : 51,5 Mb
Release : 2019-12-16
Category : Business & Economics
ISBN : 9783110651430

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Disruptive Fintech by James Deitch Pdf

Throughout history, innovators have disrupted existing financial services norms to change the landscape of the marketplace. Disruptive Fintech briefly traces fractional reserves, the creation of bank currency that traded at a premium to bullion value, central bank regulation, securitization of assets and loans, the current state of digital currency and electronic payments. The author then looks toward the future of fintech and the forces of disruption that will change the landscape of financial life as we know it. Using over 100 interviews with thought leading CEOs, this book develops a methodology to identify financial services that are ripe for innovation and discusses how innovative thinking can be used as a disruptive weapon to attack incumbents and create effective new fintech models. The book discusses How to relate historical innovations and disruptions in financial services to the current landscape How to follow a process to identify the threats facing incumbent processes and businesses, and how innovative thinking can be used as a disruptive weapon to attack incumbents and create effective new fintech models How many fintech innovations will be constructed by re-arranging or re-purposing existing core processes In this insightful book, author James Deitch, CPA CMB, argues that some of today’s high-flying fintech innovators will flourish, but many may perish as the fire of innovation consumes those fintechs that are slow to monetize their promises.

Author : Malik Dakdaki
Publisher : GRIN Verlag
Page : 76 pages
File Size : 48,6 Mb
Release : 2017-11-07
Category : Business & Economics
ISBN : 9783668565340

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The economic impact of FinTech companies on the traditional banking sector and possible future scenarios by Malik Dakdaki Pdf

Bachelor Thesis from the year 2017 in the subject Business economics - Accounting and Taxes, grade: 1,3, University of applied sciences Frankfurt a. M. (FOM), language: English, abstract: The beginning of the digital revolution at the turn of the millennium has ushered in a structural change in many sectors. Due to the increased use of modern information and communication technologies (ICT), several sectors have already experienced existential economic implications. This is especially evident in the music, media and publishing industries. For example, music is not only purchased on CDs from local retail stores, but is also increasingly consumed via the Internet through streaming services such as Spotify. Videos store rentals compete with the comfortable video-on-demand services available in customers’ own homes. The Internet as a medium for information and consumption for products and services has established itself as a faster, more comfortable and more efficient channel in comparison to traditional sales channels. Stationary retail stores were also not spared from digital disruption. The market research institute Gesellschaft für Konsumforschung (GfK) predicts a doubling of the online share of retail sales from currently to 20% by the year 2025. At the same time, new and innovative market participants known as financial technology or FinTech companies are edging into the financial sector and trying to gain market share from established banks through customer-friendly products and services. Nevertheless, the banks do not seem to recognize the seriousness of the situation and therefore are reluctant to adapt to the new situation. However, experience has shown that ignorance of an industry’s digitization has already led to the fall of large and established companies. As a well-known example in the technology industry, Kodak is often referred to in this context. The company’s reaction to the digital disruption took place too late, whereas other companies had already recognized the trend towards digital photography at an earlier stage and prepared corresponding products. As a result, Kodak plummeted from the top of the photography technology industry. Evidence of ongoing digital disruption of the financial services sector has already been provided in the form of a new type of bank, the direct bank, which was first introduced in the early 1990s . FinTech companies seek to take advantage of this success and gain customers and market share by offering innovative solutions for financial products and services.

Author : Daniel Fasnacht
Publisher : Springer Science & Business Media
Page : 219 pages
File Size : 43,5 Mb
Release : 2009-02-11
Category : Business & Economics
ISBN : 9783540882312

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Open Innovation in the Financial Services by Daniel Fasnacht Pdf

Open innovation means gathering new ideas from sources beyond organizational boundaries. It occurs when solutions to address clients’ needs are developed in collaboration and the resulting products and services are distributed through a flexible network of partners. Daniel Fasnacht’s book, the first of its kind, discusses open business models in the context of the financial services industry. He elaborates the drivers for strategic change such as increasingly sophisticated clients or demanding shareholders among other trends, including the recent global financial crisis, and explains why the transition from a closed model of operation to open innovation is vital. Various case studies illustrate how to integrate the client into the firm's innovation process and emphasize the importance of smart client segmentation and a holistic advisory model to serve clients around the globe. Leaders must develop a set of new management practices to be able to invest in multiple strategic directions. They are responsible for giving clients a remarkable experience and for creating social relationship capital based upon an open innovation culture. Open Innovation in the Financial Services provides a much-needed framework for helping to understand industry dynamics in banking and to make the most of organizational energy by using open innovation to sustain profitable growth. The book comes at the right time and offers a new mindset for business – not only for expansion strategies in general, but especially during turbulent times.

Author : Devie Mohan
Publisher : Kogan Page Publishers
Page : 265 pages
File Size : 55,8 Mb
Release : 2020-01-03
Category : Business & Economics
ISBN : 9780749486389

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The Financial Services Guide to Fintech by Devie Mohan Pdf

Fintech has emerged as one of the fastest growing sectors in the financial services industry and has radically disrupted traditional banking. However, it has become clear that for both to thrive, the culture between fintech and incumbent firms must change from one of competition to collaboration. The Financial Services Guide to Fintech looks at this trend in detail, using case studies of successful partnerships to show how banks and fintech organizations can work together to innovate faster and increase profitability. Written by an experienced fintech advisor and influencer, this book explains the fundamental concepts of this exciting space and the key segments to have emerged, including regtech, robo-advisory, blockchain and personal finance management. It looks at the successes and failures of bank-fintech collaboration, focusing on technologies and start-ups that are highly relevant to banks' product and business areas such as cash management, compliance and tax. With international coverage of key markets, The Financial Services Guide to Fintech offers practical guidance, use cases and business models for banks and financial services firms to use when working with fintech companies.

Author : Viktor Kanzler
Publisher : GRIN Verlag
Page : 68 pages
File Size : 53,6 Mb
Release : 2015-05-18
Category : Business & Economics
ISBN : 9783656962403

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How do Fintech Startups and a Changing Consumer Behavior Reshape the Financial Services Industry? by Viktor Kanzler Pdf

Bachelor Thesis from the year 2015 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Frankfurt School of Finance & Management, language: English, abstract: The purpose of this study is to illustrate how Fintech startups and other non-financial institutions reshape the finance industry as they take advantage of recent technology trends and lifestyle shifts affecting customers’ expectations. The thesis aims to show how the competitive landscape changes and to what extent digital attackers grab parts of the value chain. The study also maps out the Fintech landscape, highlights important growth trends and gives an overview of the services and products with which Fintech startups are currently edging into the market.Moreover the study points out the specific drivers and barriers relevant to Fintech companies. A further objective was to find out whether Fintech startups pose a serious threat to traditional providers and if so, which generic approaches exist to deal with these attackers. Apart from that the aim was to identify how peers address digitization as well as what strengths traditional banks can rely on. Last but not least the study demonstrates what banks and other institutions can learn from Fintech startups and how the future of finance could develop and look like in 2020.

Author : Stephan Hoppe
Publisher : GRIN Verlag
Page : 68 pages
File Size : 50,7 Mb
Release : 2018-03-14
Category : Business & Economics
ISBN : 9783960951506

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The Rise of FinTech. Threats and Opportunities for the German Retail Banking Market by Stephan Hoppe Pdf

"Banking is necessary, banks are not" – Bill Gates' famous statement from 1994 was not just provocative but also foresighted. With new technology-based providers, also known as FinTech businesses, a new player has entered the banking market and it contests the predominant role of traditional methods in financial services. Banks are now forced to ask themselves whether they can provide some additional value in comparison to digitalized FinTech companies. This applies especially to the field of retail banking. Stephan Hoppe describes the rise of the FinTech industry and outlines its impact on selected business segments of the German retail banking market. In this way his publication elaborates the threats but also the opportunities for the retail banking industry. Content: - FinTech; - retail banking; - financial services; - digitalisation; - financial technology