Hostile Takeovers: Are Banks Threatened by FinTechs?

Corporate Finance No. 01-02, p. 3-7, 2017

11 Pages Posted: 31 Jan 2017 Last revised: 5 Mar 2018

Peter Scholz

Hamburg School of Business Administration

Date Written: February 23, 2018

Abstract

English Abstract: FinTechs aim to revolutionize the traditional banking sector. However, it is unlikely that they will develop large disruptive potential in Germany. The New Institutional Economics helps to predict in which banking divisions FinTechs are more likely to succeed. If the start-ups are unable to build up customer confidence and to generate real added value, then it seems to be more promising to cooperate with banks than to challenge them.

German Abstract: FinTechs traten in jüngerer Vergangenheit häufig mit dem Ziel auf, den Bankensektor zu revolutionieren. Disruptives Potenzial dürfte in Deutschland aber nur selten entstehen. Die Neue Institutionenökonomik liefert Hinweise, in welchen Geschäftsbereichen FinTechs der Wettbewerb leichter fallen dürfte und in welchen Marktsegmenten es besonders schwierig werden könnte. Gelingt es den Start-ups nicht, Kundenvertrauen zu erlangen und echten Mehrwert zu bieten, dann sind Kooperationen mit Banken vielversprechender als Alleingänge.

Keywords: FinTech, Banking, Banken, FinTech, New Institutional Economics, P2P-Lending, Crowdfunding, Mobile Payment, Social Investing, Robo Advisor

JEL Classification: A11, G20

Suggested Citation

Scholz, Peter, Hostile Takeovers: Are Banks Threatened by FinTechs? (February 23, 2018). Corporate Finance No. 01-02, p. 3-7, 2017. Available at SSRN: https://ssrn.com/abstract=2907320

Peter Scholz (Contact Author)

Hamburg School of Business Administration ( email )

Adolphsplatz 1
Hamburg, 20457
Germany

HOME PAGE: http://think-finance.de

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