How banks interact with FinTechs: Forms of cooperation and their economic impact

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Abstract

The increasing pervasiveness of information technology in the banking sector leads to a growing pressure on banks to update their business models. An increasing number of banks tries to meet the new requirements by cooperating with FinTechs. In this paper, we investigate what types of cooperation are mostly common, which driving factors play a role for their emergence and whether a newly started cooperation affects the share price of the respective bank. Therefore, we collected data on selected firm characteristics, economic indicators and the type of cooperation for the largest banks and their cooperation partners in Canada, Germany, France and the UK. Based on preliminary results, we find that most of the cooperations are characterized by the collective use of a FinTechproduct and that banks are significantly more likely to cooperate with FinTechs when they implement the topic of digitalization into their corporate strategy. The bank´s economic situation instead, seems not to be a strong driver for cooperations with FinTechs.

Speakers from the University of Münster

Klus, Milan Frederik	Institute for Organisational Economics (IO)
Lohwasser, Todor Stefan	Institute for Organisational Economics (IO)