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Profitability and Digitalisation: The Effects on Cooperative Banks and Their Governance

In: Contemporary Trends in European Cooperative Banking

Author

Listed:
  • Eric Meyer

    (University of Muenster)

Abstract

Cooperative banks exhibit a particular governance, because they consist of multiple locally anchored banks often collaborating in a larger cooperative banking group. Moreover, their core business is in retailing banking focussing on a close relationship to their customers. Digitalisation significantly change these two main characteristics of cooperative banks and therefore threatens the profitability of cooperative banks. This contribution will outlines how the cooperative banks’ governance structure relates to their business and to their profitability. It explores the channels how digitalisation may affect the current structures of cooperative banks and their groups. Examples are given on how cooperative banks react to the challenges of digitalisation.

Suggested Citation

  • Eric Meyer, 2022. "Profitability and Digitalisation: The Effects on Cooperative Banks and Their Governance," Springer Books, in: Marco Migliorelli & Eric Lamarque (ed.), Contemporary Trends in European Cooperative Banking, chapter 0, pages 225-242, Springer.
  • Handle: RePEc:spr:sprchp:978-3-030-98194-5_10
    DOI: 10.1007/978-3-030-98194-5_10
    as

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