publication . Article . Other literature type . 2017

The impact of FinTech start-ups on incumbent retail banks’ share prices

Li, Yinqiao; Spigt, Renée; Swinkels, Laurens;
Open Access
  • Published: 09 Nov 2017 Journal: Financial Innovation, volume 3 (eissn: 2199-4730, Copyright policy)
  • Publisher: Springer Science and Business Media LLC
  • Country: Netherlands
Abstract
textabstractBackground: This study aims to clarify the role of FinTech digital banking start-ups in the financial industry. We examine the impact of the funding of such start-ups on the stock returns of 47 incumbent US retail banks for 2010 to 2016. Methods: To capture the importance of FinTech start-ups, we use data on both the dollar-volume of funding and number of deals. We relate these to the stock returns with panel data regression methods. Results: Our results indicate a positive relationship exists between the growth in FinTech funding or deals and the contemporaneous stock returns of incumbent retail banks. Conclusions: Although these results suggest com...
Subjects
free text keywords: Banks, Digital banking, Finance, FinTech, Innovation, Retail banks, Start-ups, Stock returns, Technology, Banking industry, Spurious relationship, Retail banking, business.industry, business, Panel data, Complementarity (molecular biology), Monetary economics, Positive relationship, Venture capital, Financial services, Economic policy, ddc:650
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publication . Article . Other literature type . 2017

The impact of FinTech start-ups on incumbent retail banks’ share prices

Li, Yinqiao; Spigt, Renée; Swinkels, Laurens;