Monitoring of Innovative Financial Technology
In today’s competitive, interconnected world, banking and technology moved closer together. Large tech firms and start-ups try to get involved and rethink the profitable banking business. For this reason, Swiss banks need to stay alert about regarding new disruptive technological innovations. This paper shows how this can be done.
Reto Gehrig & Lukas Schmutz, 2019
Bachelor Thesis, Neue Aargauer Bank AG
Betreuende Dozierende: Stefan Gürtler
Keywords: Fintech, Innovation, Monitoring, Banking
Fintech stands for technological solutions used to conduct financial services. First developed by banks as new solutions to problems and enhance their processes, fintech nowadays is often developed by tech firms to take over certain business
areas traditionally covered by banks. All banks are similarly affected. But as big banks' income is typically generated in more diverse ways than smaller regional banks', the latter are more threatened in their existence and should be especially
interested in newly developed tech and business model innovations entering the banking industry. For a Swiss regional bank, this paper looked into how such innovations can be monitored and their impact evaluated.
Expert interviews were conducted to gain a better understanding of the contracting party, possible sources of information, technological solutions for monitoring, fintech, and advisory. The results of the interviews were combined with literature and internet
research, and used to find and rate channels in terms of reliability, usability, time expenditure, and suitability. To evaluate the found information an individual evaluation frame for the client was created.
The research showed that monitoring all possible information channels is necessary to get a complete picture of fintech innovations. The most crucial information banks need for an evaluation is the business area of the bank which is targeted by the fintech. It then needs to be combined with how vital the area is, how much of a substitution the fintech is to one bank's products, and how loyal their customers are. Besides, the stage of the fintech, its target audience as well as if and when it plans to enter the Swiss market are essential pieces of information to know. The paper conclude that the client has a multitude of options to monitor digitalisation and
fintech. Mainly by hand, through technology, or with an advisory service. Right now, the advisory service appears to have the highest use for the client due to a faster implementation time. The paper therefore makes a recommendation for a specific monitoring advisory service to the client. The evaluation of the obtained data must bebased on its importance level to the bank’s business areas, and on the potential thefintechs could have on the bank’s business concerning savings, process optimisation, and earnings. Such an evaluation could be done in-house or by an external consulting firm, based on the client's needs.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Accounting, Banking, Controlling and Finance