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Impact of the new digital competitors on Swiss banking business models

Author

Listed:
  • Ozenc Atca Gorgun

    (Executive MBA program alumni, SBS Swiss Business School, Switzerland)

  • Bert Wolfs

    (Dean, SBS Swiss Business School, Switzerland)

Abstract

This study examines the impact of new digital-only competitors on the Swiss banking business models and value chain. Despite various studies and articles available in the literature about the impact of new digital competitors on the banking industry, there is little research focusing on the Swiss market. The comprehensive research conducted in this study and the data collected through the survey provides a foundation to gauge the impact of the new digital competitors’ pressure on business models and value chain in the Swiss banking industry. The design of the research instrument employed for collecting the primary data has been achieved through a survey shared with 75 managers and experts working in the Swiss banking industry including Swiss banks, FinTechs, BigTechs, and other financial services and consultancy firms. One sample z-test and descriptive statistics have been applied to the survey results to gain a deeper understanding. The outcome of the analysis suggests that the competitive pressure of BigTechs and FinTechs is expected to have a significant impact on the Swiss banking industry, and mainly BigTechs are anticipated to be significantly dominant with disruptive impact. The obtained results also strongly indicate that the cross-industry ecosystems and close partnerships with the new digital competitors are the potential key strategies to be pursued as the future Swiss banking business models. Besides, the disruptive new market entrants are anticipated to be highly likely to gain significant market share in certain market segments of the banking industry and also to create an ecosystem accordingly. The area of Personal and Corporate Banking is found out to be more vulnerable to digital disruption in comparison with the other banking areas. Key Words: Digital-Only Competitors Fintech; Bigtech; Swiss Banking; Strategy; Business Models

Suggested Citation

  • Ozenc Atca Gorgun & Bert Wolfs, 2021. "Impact of the new digital competitors on Swiss banking business models," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(2), pages 33-45, March.
    • Handle: RePEc:rbs:ijbrss:v:10:y:2021:i:2:p:33-45
    DOI: 10.20525/ijrbs.v10i2.1055
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    References listed on IDEAS

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    1. Jon Frost & Leonardo Gambacorta & Yi Huang & Hyun Song Shin & Pablo Zbinden, 2019. "BigTech and the changing structure of financial intermediation," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 34(100), pages 761-799.
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