The role of banks' business models in their FinTech acquisitions
The role of banks' business models in their FinTech acquisitions
In this paper, we examine the role of banks’ business models on their decisions to acquire FinTech firms and how they do so. We find that banks with diverse assets, funds, and income structures are more inclined to engage in FinTech acquisitions. Investment banks display selectivity in FinTech acquisitions while wholesale and traditional banks appear more wary, possibly because of the limited need for FinTech in their business models or the externalities in their existing business models.
Banks, Business Model, FinTech, Mergers and Acquisitions, Business model, Fintech, Mergers and acquisitions
Alfhaili, Faisal Abdulmohsen
e197516b-ccef-4847-81d8-c81b30c8865d
Bakoush, Mohamed
09d43d33-abd2-4db0-a26a-2f5831ea0a01
Wolfe, Simon
9a2367fc-36cc-496a-bbd2-e7346bcbb19e
21 January 2025
Alfhaili, Faisal Abdulmohsen
e197516b-ccef-4847-81d8-c81b30c8865d
Bakoush, Mohamed
09d43d33-abd2-4db0-a26a-2f5831ea0a01
Wolfe, Simon
9a2367fc-36cc-496a-bbd2-e7346bcbb19e
Alfhaili, Faisal Abdulmohsen, Bakoush, Mohamed and Wolfe, Simon
(2025)
The role of banks' business models in their FinTech acquisitions.
Journal of Financial Services Research.
(doi:10.1007/s10693-024-00442-w).
Abstract
In this paper, we examine the role of banks’ business models on their decisions to acquire FinTech firms and how they do so. We find that banks with diverse assets, funds, and income structures are more inclined to engage in FinTech acquisitions. Investment banks display selectivity in FinTech acquisitions while wholesale and traditional banks appear more wary, possibly because of the limited need for FinTech in their business models or the externalities in their existing business models.
Text
The_Role_of_Banking_Business_Models_in_Banks_Fintech_Acquisitions_Accepted_Manuscript_Dec2025
- Accepted Manuscript
Text
s10693-024-00442-w
- Version of Record
More information
Accepted/In Press date: 26 December 2024
Published date: 21 January 2025
Keywords:
Banks, Business Model, FinTech, Mergers and Acquisitions, Business model, Fintech, Mergers and acquisitions
Identifiers
Local EPrints ID: 497895
URI: http://eprints.soton.ac.uk/id/eprint/497895
ISSN: 0920-8550
PURE UUID: b0c5ed09-7ab5-4923-bbd4-a3cfad5c7535
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Date deposited: 04 Feb 2025 17:40
Last modified: 17 Oct 2025 02:06
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Author:
Faisal Abdulmohsen Alfhaili
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