Banks and FinTech acquisitions

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Kwon, Kyung Yoon and Molyneux, Philip and Pancotto, Livia and Reghezza, Alessio (2023) Banks and FinTech acquisitions. Journal of Financial Services Research. ISSN 0920-8550 (https://doi.org/10.1007/s10693-022-00396-x)

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Abstract

This paper investigates ex-ante factors influencing international bank acquisition of FinTech companies from 2010-2018. Using hand-collected data, we show that bank boards with a larger female presence as well as those that have CEOs with longer tenure are more likely to pursue FinTech acquisitions. The financial performance also matters as banks with greater capital strength and liquidity are more likely to be acquirers. In line with prior expectations, banks with higher IT spending, suggesting greater in-house development of digital solutions, are less likely to target FinTech acquisitions. In addition, younger CEOs and banks with lower IT spending are also found to be more likely to make multiple FinTech acquisitions. The nationality diversity in the boardroom matters for cross-border bank-FinTech deals.

ORCID iDs

Kwon, Kyung Yoon ORCID logoORCID: https://orcid.org/0000-0002-6212-8187, Molyneux, Philip, Pancotto, Livia ORCID logoORCID: https://orcid.org/0000-0001-9247-3662 and Reghezza, Alessio;
  • Item type:Article
    ID code:83725
    Dates:
    Date
    Event
    11 January 2023
    Published
    11 January 2023
    Published Online
    16 December 2022
    Accepted
    29 August 2022
    Submitted
    Subjects:Social Sciences > Finance
    Department:Strathclyde Business School > Accounting and Finance
    Depositing user: Pure Administrator
    Date deposited:16 Jan 2023 12:06
    Last modified:17 Dec 2024 01:28
    URI:https://strathprints.strath.ac.uk/id/eprint/83725
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