Motivations for Coopetition Strategies between Banks and Fintechs

The aim of this study is to identify the main motivations for the formation of strategic coopetitive partnerships between Banks and Fintechs. In this sense, an exploratory qualitative analysis was performed using semi-structured interviews. Following the triangulation between literature review, primary sources (interviews) and secondary sources (news and relevant documentation), the analysis of the results was performed using the Systematic Combination approach. The results led to the conclusion that the “clients” factor, materialized in the will to respond to their new demands, through value creation, is the main motivation for both institutions to establish strategic alliances. This study filled the literature gaps regarding the identification of the main motivations to form coopetitive strategic alliances between Banks and Fintechs: banks need the Fintechs’ technological know-how, their flexibility in the processes and the fact that Fintech operate in specific niches; Fintechs need banks’ market knowledge and their scale. Together they can answer in a better way new customer demand. This investigation is limited by the lack of tangible identification of existing Fintechs; and also because of qualitative analysis lack of quantitative confirmation.