Strategic alliances between banks and fintechs for digital innovation: Motives to collaborate and types of interaction

Milan F. Klus, Todor S. Lohwasser, Friedrich Holotiuk and Jürgen Moormann

No 6/2018, Discussion Papers of the Institute for Organisational Economics from University of Münster, Institute for Organisational Economics

Abstract: In times of digitalization, firms increasingly need to form alliances due to the higher complexity and greater dynamics of markets. Digital innovation poses challenges for established institutions (e.g., banks) in adapting to changing rules that are set by new competitors and higher customer expectations. However, young firms providing technical solutions for the financial services industry (fintechs) also face difficulties, such as meeting regulatory requirements. Due to the shortcomings of both banks and fintechs, firms in the financial services industry are increasingly forming alliances. We conducted interviews to examine the motivations of both banks and fintechs to join forces. The resulting motives are categorized as matching, complementary, and neutral. The alliances in our sample can be differentiated into financial investments and customer-service provider relationships, with the second category being most common. However, our findings reveal that the occurrence of particular motives is not linked to certain types of alliances. Building on these findings, we develop a motivation framework and derive practical implications.

JEL-codes: G21 G23 G34 L14 L24 M13 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cse, nep-ict, nep-ino and nep-pay
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:umiodp:62018

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