My presentation today for an international banking group about using research frameworks to analyse planned and existing partnerships between an incumbent bank and FinTech start-up.

1. FinTech partnerships
- research based analysis
Ilkka Lähteenmäki

2. - 20+ years in banking
- Inc. 10+ years of financial research
- 2011-2016 in Danske Bank
- Head of business development in PB
- Head of strategy planning in FIN
- Partner in two start-ups
- Since Oct. 2016 research network of FinTech
- Together with the Bank of Finland and
Ministry on Finance a FinTech Institute
- Ph.D. about banking development &
partnerships
- 7 journal & conference publications

3. FinTech causation research
Financial business:
- Business models
- Competencies
- Competition
- Co-operations
- Management
- Customer experience
- Value creation
- Partnerships

4. Incumbents & FinTech start-ups
Analysis framework
1. Time horizon
2. Depth of the relationship
3. Dominance
4. Customer value creation

5. 1. Time horizon
Salaries online
ATMs
Tele-
banking
PC-banks
Internet banking
Mobile
60´s
70´s
80´s
90’s
2000’s
2010’s
Apps
50´s
FinTech
Screen
scraping

6. 1930 1940 1950 1960 1970 1980 1990 2000
Economic Conceptions of Competition
Emergence of Organisations: Social Perspectives
Emergence of Organisations: Economic Perspectives
Imprinting Processes
Systems Related and Theories
Strategic Choice
Transaction Cost Theory (Price and Authority)
Resource Dependence - Structural Approach
Class-based Approaches
Institutional Theory
Institutional Theory of Markets
Internal Structures and Processes: A
Organisations as Cultural Mappings
Internal Structures and Processes: B
Internal Structures and Processes: C
Ecological Dynamics of Organisational Populations
Organisation-environment Relations: Institutional Processes
Density-dependent Legitimation/Competition
Networks and Niches
Status
Niche Width
Resource Partitioning Theory
Diffusion of Organisational Forms
Selective Replacement of Old Forms by New Forms
Stakeholder Theory of the Firm
Organisational Learning
Theories contributing to inter-firm organisations
Bank
Environment
other firm
partnership
relation
External reasons
(RDP)
-uncertainty
-dependency
-possibility
Partnership-specific reasoning
(TCE, RBV, IMP)
Industry-specific reasons
-specialisation
-openness-policy
-approach to uncertainty
-cost based
-resource based
-relation based
2. Depth of the relationship

7. 3. Dominance
Start-up dominance
Incumbent dominance
Co-operationCompetition

8. 4. Customer value creation
Value creation spheres
False True
Value:
- Value-in-production
- Value-in-use
- Co-creation
- Service dominant logic
- Customer dominant logic

9. APIs and open banking
Source: http://openbankproject.com/for-banks/

10. A few cases

11. Analysis
API and
open banking
3rd party
applications
FinTech
Banking-as-a-service
Platform
economy
Generic
platforms
IoT
Banking-in-a-service
DAOs
Replaced
Banking
Services
Value delivery level

12. Conclusions
• From hackathons to permanent phase
• Development on the banking platform (OBP) – service on the
customer’s platform (contextual banking)
• From competition to co-operation
• From bank dominance to win-win
• FinTech moves banking closer to customers
• Why FinTech start-up
• Business culture, lean, flexibility
• Hubs and institutes as FinTech networks

13. Thanks!