Fostering Innovation and Growth: The Motivation behind Strategic Cooperation between Banks and Fintech Startups
Fostering Innovation and Growth: The Motivation behind Strategic Cooperation between Banks and Fintech Startups
Subject Areas : Financial Knowledge of Securities Analysis
Arash Onsori 1 , Abbas Khamseh 2 * , Taghi Torabi 3 , Hamidreza Yazdani 4
1 - PhD Candidate, Department of Technology Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 - Associate Professor, Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran. (Corresponding Author)
3 - Associate Professor, Department of Economics, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
4 - Associate Professor, Department of Management and Accounting, Farabi Faculty, University of Tehran, Tehran, Iran
Keywords: strategic cooperation, market development, financial aspects, innovation, business ecosystem,
Abstract :
This research investigates the motivation of banks and fintech startups to engage in strategic cooperation, with a specific focus on the Iranian context. The aim is to address existing research gaps by examining the factors that influence their decision-making process and shedding light on the intricacies of cooperation. The study adopts the Grounded Theory method, based on interviews conducted with experts from the banking system and fintech startup managers. Subsequently, a questionnaire was distributed to collect data from banking, financial, and fintech experts, which was analyzed using a structural equation model. The findings reveal four key categories of factors that drive the motivation for banks and fintech startups to enter into strategic cooperation: the need for market development, financial aspects, innovative incentives, and the new business ecosystem. The results of the structural equation model indicate that all four categories significantly impact the motivation to pursue strategic collaborations. Based on the research findings, practical suggestions are provided for industry practitioners, policymakers, and researchers. These recommendations include creating a supportive regulatory environment conducive to collaboration, developing effective strategies for forming strategic partnerships, fostering an innovation-driven culture, enhancing financial benefits for all parties involved, and nurturing a collaborative ecosystem. This research significantly contributes to the existing body of knowledge by offering a comprehensive understanding of the motivations, challenges, and benefits associated with strategic cooperation between banks and fintech startups. The insights gained from this study will prove valuable for stakeholders navigating the dynamic landscape of Iran's financial sector and beyond.