Competition and Innovation in the Banking Industry PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Competition and Innovation in the Banking Industry PDF full book. Access full book title Competition and Innovation in the Banking Industry by Eric de Bodt. Download full books in PDF and EPUB format.
Author: Eric de Bodt Publisher: ISBN: Category : Languages : en Pages : 44
Book Description
How does competition affect innovation in the banking industry? We use the 1994 Riegle-Neal Interstate Banking and Branching Efficiency Act as a major exogenous shock on U.S. banking industry competition and study its impact on innovation. Addressing this issue is challenging however because traditionally banks do not report research and development expenses and most often do not patent their new product/service developments. Classic measures of innovation are therefore not available. Consequently, we start by introducing a new measure of innovation, denoted PSV for Product Similarity Variability, based on the Hoberg and Phillips (2010) measure of product similarity score, and report numerous results that confirm its validity. Thanks to the availability of the Hoberg and Phillips (2010) measure for financial institutions and banks in particular, our PSV measure of innovation unlocks the doors to investigations into the relation between competition and innovation in the banking industry. We proceed by implementing differences-in-differences tests around the Riegle-Neal Act adoptions at states level. Our results suggest that competition has a negative but transitory impact on innovation in the banking industry.
Author: Eric de Bodt Publisher: ISBN: Category : Languages : en Pages : 44
Book Description
How does competition affect innovation in the banking industry? We use the 1994 Riegle-Neal Interstate Banking and Branching Efficiency Act as a major exogenous shock on U.S. banking industry competition and study its impact on innovation. Addressing this issue is challenging however because traditionally banks do not report research and development expenses and most often do not patent their new product/service developments. Classic measures of innovation are therefore not available. Consequently, we start by introducing a new measure of innovation, denoted PSV for Product Similarity Variability, based on the Hoberg and Phillips (2010) measure of product similarity score, and report numerous results that confirm its validity. Thanks to the availability of the Hoberg and Phillips (2010) measure for financial institutions and banks in particular, our PSV measure of innovation unlocks the doors to investigations into the relation between competition and innovation in the banking industry. We proceed by implementing differences-in-differences tests around the Riegle-Neal Act adoptions at states level. Our results suggest that competition has a negative but transitory impact on innovation in the banking industry.
Author: Jarunee Wonglimpiyarat Publisher: Liverpool University Press ISBN: Category : Business & Economics Languages : en Pages : 144
Book Description
This is the first book to describe the history of the innovation of the bank card, from development to commercialization. It describes the strategies employed by innovators in order to achieve competitive advantage, and the use of technology to manage implementation. Interviews and questionnaire surveys are conducted with all the major players in the bank card industry - Barclays, Citibank, American Express, Diners Club, Visa International, Mondex International and Europay. The result is a clear and penetrating insight into all aspects of the bank card market. Innovations in bank cards - ATM/cash cards, credit cards, EFTPOS/debit cards and smart cards - are analyzed; as are the collaborative strategies employed by the banks to realize the benefits of bank card technology. Strategies of Competition has been written for bankers and those who work in the financial service industry, students undertaking courses in technology/strategic management, and MBA students. It provides a detailed and up-to-date analysis of the logic that banks and bankers adopt in setting bank card strategies under a complex socio-economic environment and competitive conditions. The book is essential reading for all who need to understand the strategic integration and management of banking products and innovations as they relate to the bank card business. Specific topics addressed include: the use of technology in providing banking products/services; strategies in securing the benefits of innovations; and banking sector capability in the innovation and launch of smart cards.
Author: Jacob A. Bikker Publisher: Edward Elgar Publishing ISBN: 1785363301 Category : Business & Economics Languages : en Pages : 425
Book Description
For academics, regulators and policymaker alike, it is crucial to measure financial sector competition by means of reliable, well-established methods. However, this is easier said than done. The goal of this Handbook is to provide a collection of state-of-the-art chapters to address this issue. The book consists of four parts, the first of which discusses the characteristics of various measures of financial sector competition. The second part includes several empirical studies on the level of, and trends in, competition across countries. The third part deals with the spillovers of market power to other sectors and the economy as a whole. Finally, the fourth part considers competition in banking submarkets and subsectors.
Author: Carlotta Mariotto Publisher: ISBN: Category : Languages : en Pages : 35
Book Description
Over the recent years, the development of mobile banking and Internet banking has had a considerable impact on competition in the retail banking industry. In some countries, the regulatory framework has been adapted to allow non-banks to operate in retail payments and compete with banks for deposits. Several Internet Service Providers or large retailers have started to offer innovative financial products to their customers. In this paper, we analyse how the industrial organization literature can be used to study recent innovations in retail banking and discuss some perspectives for future research.
Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Financial Institutions Publisher: ISBN: Category : Business & Economics Languages : en Pages : 112
Author: Brian Mantel Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Significant debate has occurred over the last several decades regarding whether there is adequate competition and innovation in the non-recurring consumer payments segment of the banking industry. For instance, the Department of Justice and some retailers have sued Visa and MasterCard for limiting competition and innovation. There has also been a host of high profile product "failures" in the consumer e-payment market place (e.g., e-cash and smart card products). Meanwhile, some researchers have suggested that consumers are irrational and unresponsive to marketplace incentives (for instance, see Ausubel (1991)). Despite anecdotal reports which imply to some that "there's something wrong" in this market, we find evidence that there is increasing competition, strong innovation, and customers who respond to market stimuli in the non-recurring consumer payments market. The paper discusses three areas: (1) demand and supply-side factors influencing change, (2) a framework for evaluating and predicting innovation and substitution in this market, and (3) the implications of changing technology, governance, business practice, and the formation of "multi-purpose networks" in electronic payment networks on competition policy. First, this paper provides strong support for Hirschman (1982)'s "bundle of attributes (consumer rationality)" theory. It also provides strong evidence that there are important supply-side phenomena such as differences amongst community and national banks and the importance of market-size which influence market incentives. Second, the paper proposes the beginning of a model of substitution and innovation, which helps not only to explain but also predict where innovations might or might not occur. It also helps to explain which types of firms might have an advantage in pioneering these innovations, and why. The article goes on to apply this model, discussing changes in consumers' propensity to use credit cards, debit cards, electronic benefits transfer cards, e-cash, stored value, and smart cards. Third, drawing on well known academic literature, this paper argues that efforts by the public sector to influence the practices of incumbents might actually adversely impact innovation by reducing the expected pay-outs that are currently motivating significant investment in innovation by non-traditional providers. In this vein, the paper analyzes several consumer e-payment infrastructures currently in place - some owned by banks, some owned by independent third parties and provided to banks, and some owned by non-banks - which provide a platform for innovation by both financial institutions and non-traditional providers. The presence and viability of these alternative payment platforms are making these markets increasingly competitive and contestable, at least at the margins. We assert that, at a minimum, the ongoing formation of what we call "product-independent payment networks" currently underway, as documented by this study, may require anti-trust authorities to reconsider how they define the relevant market for evaluating competition policy objectives.
Author: Vojislav Maksimovic Publisher: World Bank Publications ISBN: Category : Access to Finance Languages : en Pages : 77
Book Description
Abstract: China is often mentioned as a counterexample to the findings in the finance and growth literature since, despite the weaknesses in its banking system, it is one of the fastest growing economies in the world. The fast growth of Chinese private sector firms is taken as evidence that it is alternative financing and governance mechanisms that support China's growth. This paper takes a closer look at firm financing patterns and growth using a database of 2,400 Chinese firms. The authors find that a relatively small percentage of firms in the sample utilize formal bank finance with a much greater reliance on informal sources. However, the results suggest that despite its weaknesses, financing from the formal financial system is associated with faster firm growth, whereas fund raising from alternative channels is not. Using a selection model, the authors find no evidence that these results arise because of the selection of firms that have access to the formal financial system. Although firms report bank corruption, there is no evidence that it significantly affects the allocation of credit or the performance of firms that receive the credit. The findings suggest that the role of reputation and relationship based financing and governance mechanisms in financing the fastest growing firms in China is likely to be overestimated.
Author: Boitan, Iustina Alina Publisher: IGI Global ISBN: 1799843912 Category : Business & Economics Languages : en Pages : 313
Book Description
Due to the emergence of innovative technologies, various professional fields are transforming their traditional business practices. Specifically, the financial and legal markets are experiencing this digital transformation as professionals and researchers are finding ways to improve efficiency, personalization, and security in these economic sectors. Significant research is needed to keep pace with the continuous advancements that are taking place in finance. Fostering Innovation and Competitiveness with FinTech, RegTech, and SupTech provides emerging research exploring the theoretical and practical aspects of technologically innovative mechanisms and applications within the financial, economic, and legal markets. Featuring coverage on a broad range of topics such as crowdfunding platforms, crypto-assets, and blockchain technology, this book is ideally designed for researchers, economists, practitioners, policymakers, analysts, managers, executives, educators, and students seeking current research on the strategic role of technology in the future development of financial and economic activity.
Author: Daniel Fasnacht Publisher: Springer Science & Business Media ISBN: 3540882316 Category : Business & Economics Languages : en Pages : 219
Book Description
Open innovation means gathering new ideas from sources beyond organizational boundaries. It occurs when solutions to address clients’ needs are developed in collaboration and the resulting products and services are distributed through a flexible network of partners. Daniel Fasnacht’s book, the first of its kind, discusses open business models in the context of the financial services industry. He elaborates the drivers for strategic change such as increasingly sophisticated clients or demanding shareholders among other trends, including the recent global financial crisis, and explains why the transition from a closed model of operation to open innovation is vital. Various case studies illustrate how to integrate the client into the firm's innovation process and emphasize the importance of smart client segmentation and a holistic advisory model to serve clients around the globe. Leaders must develop a set of new management practices to be able to invest in multiple strategic directions. They are responsible for giving clients a remarkable experience and for creating social relationship capital based upon an open innovation culture. Open Innovation in the Financial Services provides a much-needed framework for helping to understand industry dynamics in banking and to make the most of organizational energy by using open innovation to sustain profitable growth. The book comes at the right time and offers a new mindset for business – not only for expansion strategies in general, but especially during turbulent times.
Author: Eric de Bodt
Author: Eric de Bodt
Author: Jarunee Wonglimpiyarat
Author: Jacob A. Bikker
Author: Carlotta Mariotto
Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Financial Institutions
Author: Brian Mantel
Author: Vojislav Maksimovic
Author: Boitan, Iustina Alina
Author: Carlotta Mariotto
Author: Daniel Fasnacht