Bank Strategies in the Light of the Digitalisation of Financial Activities

Alessandra Tanda and Cristiana-Maria Schena ()
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Cristiana-Maria Schena: University of Insubria

Chapter Chapter 4 in FinTech, BigTech and Banks, 2019, pp 51-81 from Palgrave Macmillan

Abstract: Abstract Incumbent firms are responding to the challenges of digitalisation by adopting a number of strategies. The large international banks are implementing a mixed strategystrategy that includes shareholdings in FinTechFinTech companies, partnerships and also in-house development in the different areas of financial intermediation that are being affected by technological innovationinnovation. Many initiatives focus on lending, online banking and payments but wealth management and support technologies for middle and back office are also in place. The degree of disruption caused by the initiatives varies, with many banks mainly focusing on the digitalisation of channels. Smaller banks face additional constraints because of their limited size and investment potential, together with their traditional link with the territory they operate in and their traditional approach to customers. DigitalisationDigitalisation has become a key issue for these intermediaries, too, if they are to be able to cope with competition not only from FinTechs and BigTechs but also from larger incumbents and new entrants. Of the latter, digital native banks have started to operate successfully on the market through innovative business models and by offering highly digitalised content and services, which meet customers’ expectations. These can be created by incumbent firms, new entrants or BigTechBigTech conglomerate spin-offs.

Keywords: Incumbent firms; Banks; Digital transformationdigital transformation; Digital disruptiondigital disruption; Strategystrategy (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/978-3-030-22426-4_4

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