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Intended benefits and challenges of cooperation between FinTechs and commercial banks

Author

Listed:
  • Dóra Horváth

    (Department of Strategic Management, Corvinus University of Budapest, Fővám tér 8, Budapest, H-1093, Hungary)

  • Ádám Kerényi

    (Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences, Tóth Kálmán utca 4, Budapest, H-1097, Hungary)

  • Roland Zsolt Szabó

    (Department of Marketing and Management, Kautz Gyula Faculty of Business and Economics, Széchenyi István University, Egyetem tér 1, Győr, H-9026, Hungary)

Abstract

The financial industry has undergone several changes in recent years. One of these changes is the emergence of financial technology (FinTech) companies that are radically transforming the industry, posing a significant challenge to traditional commercial banks. In this study, we examined the responses of the Hungarian banks to the emergence of innovative FinTech startups and explored the benefits and barriers of the FinTech accelerator programs launched by banks. We conducted 27 semi-structured interviews with top executives of banks, FinTech startups and scaleups, investors and regulators to identify the potential benefits and barriers during the cooperation between banks and FinTechs. The most important results of our research show that during the partnership, several advantages can be gained by both parties. Still, the realization of these benefits is significantly hindered by the excessive exploitation focus of banks. Ambidextrous internal champions or suppliers of the banks are needed for successful cooperation between FinTechs and banks.

Suggested Citation

  • Dóra Horváth & Ádám Kerényi & Roland Zsolt Szabó, 2022. "Intended benefits and challenges of cooperation between FinTechs and commercial banks," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 72(3), pages 289-308, September.
    • Handle: RePEc:aka:aoecon:v:72:y:2022:i:3:p:289-308
    DOI: 10.1556/032.2022.00023
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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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