Open Banking Business Model in the Middle East Bank by using a soft systems methodology

Document Type : Management & Entrepreneurship

Authors

1 Associate professor of Department of Business Administration, Payame Noor University, Tehran, Iran

2 Ph.D student in Business Administration, Payam Noor University, Tehran, Iran

3 Assistant Professor, Department of Business Administration, Payam Noor University, Tehran, Iran

Abstract

In recent years, technological advances have led to dramatic changes in the financial ecosystem and momentum in the traditional structure of the banking industry and the need to review the traditional business models of banks. Therefore, the current study has been conducted with a qualitative-quantitative approach to explain the open banking business model in the Middle East Bank. The statistical population of this research in the qualitative part consists of middle managers of various branches of the Middle East Bank active in the field of open banking and managers of fin-techs whose statistical sample size was equal to 10 people. Also, the quantitative population of this study is the managers and employees and natural and legal customers of 16 branches of the Middle East Bank in Tehran, which was determined based on Cochran's formula equal to 370 people. The data collection tool in this study is semi-structured in-depth qualitative interviews, the data of which were analyzed using the soft systems research method, and in the quantitative part, the data were collected through a researcher-made questionnaire were collected and then analyzed by using confirmatory factor analysis and structural equations. Based on this, 94 codes extracted from interviews with experts, were classified into 74 concepts, 16 subcategories and 3 categories of customer-oriented banking, API management and regulatory developments. Quantitative findings also confirm the positive and significant impact of these three components on the open banking business model of the Middle East Bank.

Keywords

Main Subjects

References

Asadollah, M; Sanavi fard, R; Hamidizadeh, A (2019) Electronic banking business model based on the emergence of fintechs and financial startups. Quarterly Journal of Technology Development Management, 7(2),195- 242
Atzori, M., Koutrika, G., Pes, B., & Tanca, L. (2020). Special issue on “Data Exploration in the Web 3.0 Age”.
Beaton-Wells, C. (2018). Platform power and privacy protection: A case for policy innovation. CPI Antitrust Chronicle, September
Carletti, E., Claessens, S., Fatás, A., & Vives, X. (2020). Barcelona Report 2-The Bank Business Model in the Post-Covid-19 World. Centre for Economic Policy Research.
Chen, S. (2020). Open banking strategies for Chinese banks. Master thesis in Business & economic sciences,
Daiy, A. K., Shen, K. Y., Huang, J. Y., & Lin, T. M. Y. (2021). A Hybrid MCDM Model for Evaluating Open Banking Business Partners. Mathematics, 9(6), 587.
Gozman, D., Hedman, J., & Olsen, K. S. (2018). Open banking: emergent roles, risks & opportunities.
Grieco, M. (2020). Open banking and its impact on firms' business models. Master thesis, University of Pavia.
Khanlari, A; Ansari Chaharsoghi, Sh; Hasanqolipour, Ta; Azizi, Sh. (2019). Explanation and design of the banking service market formation model based on financial technology (Fintech) in Iran based on the foundation's data approach. Journal of Accounting and Auditing Research, 12(47).
Kõrvemaa, K. (2017). Open business model implementation in financial industry: Case PSD2. Master’s Thesis in Strategy, Innovation and Sustainability, University of Lappeenranta University of Technology.
Kreitstshtein, A. (2017). Digital transformation and its effects on the competency framework: a case study of digital banking.
Larsson, J., & Fränberg, D. (2019). Innovations in Finance as Regulators Push Open Banking-Understanding innovative processes and market change in the Swedish banking market as of payment services directive 2 (Master's thesis).
Long, G., Tan, Y., Jiang, J., & Zhang, C. (2020). Federated learning for open banking. In Federated learning (pp. 240-254). Springer, Cham
Ochanda, C. A. (2018). The Effect of Interest Rates Caps on Bank Perfomance Amongst Kenyan Commercial Banks (Doctoral dissertation, United States International University-Africa).
Payandeh, R; Manteghi, M; Shahbazi, Ma (2019). Scenario planning of the future of Iranian banks in the face of fintech. Financial Research, 23(2), 294-328.
Payandeh, R; Manteghi, M; Shahbazi, M (2020). Analyzing and discovering the cooperation patterns of Iranian banks with fintechs. Innovation Management, 10(1), 161-188.
Plaitakis, A., & Staschen, S. (2020). Open Banking: How to Design for Financial Inclusion.
Poli, F. (2019). Co-operative Banking in Austria. In Co-operative Banking Networks in Europe (pp. 97-145). Palgrave Macmillan, Cham.
Ramasastri, A. S. (2016). Digital banking framework. Institute for Development and Research in Banking Technology (Established by Reserve Bank of India).
Roengpitya, R., Tarashev, N. A., & Tsatsaronis, K. (2014). Bank business models. BIS quarterly review December.
Sanavi fard, R, Asadollah, M, ; Hamidizadeh, A (2021) Designing an open banking business model in the light of open innovation. Strategic Management Studies, 45, 245-268.
Talbot, D., & Ordonez-Ponce, E. (2020). Canadian banks’ responses to COVID-19: A strategic positioning analysis. Journal of Sustainable Finance & Investment, 1-8.
Urei, H; Esfidani, M R; Kimasi, M (2019). Presenting the business model framework of commercial banks with an open banking approach. Management of Tomorrow, 19(65), 17-28.
Voigt, K. I., Buliga, O., & Michl, K. (2017). Business model pioneers. Management for Professionals. AG Switzerland: Springer International Publishing.

Files

History

  • Receive Date: 05 February 2023
  • Revise Date: 22 June 2023
  • Accept Date: 23 July 2023

Share

How to cite

Statistics