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The role of banking business models in banks' fintech acquisitions

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
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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More information

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
ORCID for Faisal Abdulmohsen Alfhaili: ORCID iD orcid.org/0000-0003-0140-6224
ORCID for Mohamed Bakoush: ORCID iD orcid.org/0000-0001-9624-9828
ORCID for Simon Wolfe: ORCID iD orcid.org/0000-0001-9815-9535

Catalogue record

Date deposited: 17 Jul 2024 16:53
Last modified: 01 Oct 2024 02:03

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Contributors

Author: Faisal Abdulmohsen Alfhaili ORCID iD
Author: Mohamed Bakoush ORCID iD
Author: Simon Wolfe ORCID iD

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