The role of banking business models in banks' fintech acquisitions
The role of banking business models in banks' fintech acquisitions
This chapter examines the impact of banking business models on banks' decisions to acquire fintech firms. Our empirical findings demonstrate that banks with diverse asset, funding, and income structures are more inclined to engage in fintech acquisitions, as they possess the capacity to assume higher risks. Investment banks also display selectivity in their fintech acquisitions. In contrast, traditional banks adopt a risk-averse approach, while wholesale banks exhibit a reduced likelihood of conducting fintech acquisitions. Additionally, our research highlights that the propensity of a bank to acquire a particular type of fintech firm is influenced by its specific business model. Moreover, we provide evidence that bank business models determine the banks' motivations behind fintech acquisitions.
Alfhaili, Faisal Abdulmohsen
692a34b2-b69e-4d13-8829-97f19272800b
Bakoush, Mohamed
09d43d33-abd2-4db0-a26a-2f5831ea0a01
Wolfe, Simon
9a2367fc-36cc-496a-bbd2-e7346bcbb19e
July 2024
Alfhaili, Faisal Abdulmohsen
692a34b2-b69e-4d13-8829-97f19272800b
Bakoush, Mohamed
09d43d33-abd2-4db0-a26a-2f5831ea0a01
Wolfe, Simon
9a2367fc-36cc-496a-bbd2-e7346bcbb19e
Alfhaili, Faisal Abdulmohsen, Bakoush, Mohamed and Wolfe, Simon
(2024)
The role of banking business models in banks' fintech acquisitions.
Essex Finance Centre (EFiC) 2024 Conference in Banking and Corporate Finance, , Colchester, United Kingdom.
04 - 05 Jul 2024.
Record type:
Conference or Workshop Item
(Paper)
Abstract
This chapter examines the impact of banking business models on banks' decisions to acquire fintech firms. Our empirical findings demonstrate that banks with diverse asset, funding, and income structures are more inclined to engage in fintech acquisitions, as they possess the capacity to assume higher risks. Investment banks also display selectivity in their fintech acquisitions. In contrast, traditional banks adopt a risk-averse approach, while wholesale banks exhibit a reduced likelihood of conducting fintech acquisitions. Additionally, our research highlights that the propensity of a bank to acquire a particular type of fintech firm is influenced by its specific business model. Moreover, we provide evidence that bank business models determine the banks' motivations behind fintech acquisitions.
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Published date: July 2024
Venue - Dates:
Essex Finance Centre (EFiC) 2024 Conference in Banking and Corporate Finance, , Colchester, United Kingdom, 2024-07-04 - 2024-07-05
Identifiers
Local EPrints ID: 492132
URI: http://eprints.soton.ac.uk/id/eprint/492132
PURE UUID: ed817dc1-9d4d-4cf1-ade3-a1221055aa36
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Date deposited: 17 Jul 2024 16:53
Last modified: 09 Aug 2024 02:03
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Contributors
Author:
Faisal Abdulmohsen Alfhaili
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