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Maxence Miéra, Nicolas Bédu and Viola Lamani
 
''How asset transformation matters for the fate of technology-led banks?''
( 2024, Vol. 44 No.1 )
 
 
This paper examines the efficiency of technology-led banks (i.e. internet banks, mobile banks or FinTech startups offering banking services) in a simple theoretical model using conventional banks as a competitive benchmark. We show that the fate of technology-led banks crucially relies on their level of asset transformation. We identify two critical thresholds of asset transformation in a general contractual setting. The first determines whether technology-led banks are feasible to set up, while the second determines when technology-led banks are at least as attractive as conventional banks.
 
 
Keywords: Asset transformation, internet banking, mobile banking, FinTechs
JEL: G2 - Financial Institutions and Services: General
 
Manuscript Received : Jul 18 2023 Manuscript Accepted : Mar 30 2024

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