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Banking and FinTech: Is the market size of the European FinTech industry influencing the stock price of traditional European banks?
Jönköping University, Jönköping International Business School.
Jönköping University, Jönköping International Business School.
2020 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Some developments can be observed in banking since 2008. Increased distance-banking options,alternatives to physical payment cards and app-based money transfer are just to name a few. Whatis also noticeable is that providers of these options are not necessarily traditional banking institutes.This current state, arguably, can be largely attributed to FinTech. Since 2008’s financial crisis, acombination of consumer expectation, banking regulations and developments in technology hasallowed non-financial start-ups with data processing capabilities the opportunity to provide theirofferings to the market. The offerings that have emerged are what is now described as the FinTechindustry. How have the offerings which duplicate services previously provided by traditional banksaffected the traditional banks? We plan to contribute to this multifaceted answer. More specifically,this paper uses panel data regression analysis methods to identify whether a relationship can beobserved between the market size of the European FinTech industry and the stock returns oftraditional European banks. Our results conclude that no statistically significant relationship canbe found. Moreover, our research serves as support to critics of the Fama and French five-factormodel, with reference to its explanatory powers.

Place, publisher, year, edition, pages
2020. , p. 35
Keywords [en]
FinTech, Competition, Fama-French Five-Factor, Stock prices, Market Size, Funding
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-48660ISRN: JU-IHH-FÖA-2-20201129OAI: oai:DiVA.org:hj-48660DiVA, id: diva2:1433878
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Available from: 2020-06-24 Created: 2020-06-01 Last updated: 2020-06-24Bibliographically approved

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