Redefining banks in the digital era: a typology of banks and their research, managerial and policy implications

Mogaji, Emmanuel

Abstract

Purpose
This study aims to shed light on the evolving nature of banks in the digital era and the implications for bank marketing and management. The research addresses the need for a comprehensive typology of banks that integrates fintech and explores how traditional and app-only banks strategically position their brands. The key argument is that understanding the changing landscape of banking and the impact of technological advancements is crucial for banks to navigate the challenges and opportunities presented by fintech and digital transformation.

Design/methodology/approach
This study examines literature and practices to develop a typology of banks, describing their characteristics, strengths, weaknesses and providing examples. It also proposes new research agendas for scholars and practitioners in the field.

Findings
This paper introduces a typology of banks based on their adoption of fintech and digital technologies. Three distinct types of banks are identified: Traditional banks adopting FinTech (TBAF), Traditionally Driven Neo Banks (TDNBs) and Digitally Driven Neo Banks (DDNBs). TBAF are traditional banks that have embraced fintech solutions to enhance their operations and customer experiences. TDNBs represent a hybrid model, combining the trusted brand and infrastructure of traditional banks with the digital capabilities and agility of neo banks. DDNBs are purely digital banks that operate exclusively online, offering innovative and user-friendly banking services.

Originality/value
This study is a pioneering work that classified banks based on their utilization of fintech and digital technologies. The study provides a typology of banks based on fintech adoption, offering valuable insights for bank managers, policymakers and researchers. The research also outlines a research agenda, suggesting future investigations to further enhance understanding of the evolving banking landscape and its implications.

• Journal Article Type: Article
• Acceptance Date: Oct 1, 2023
• Publication Date: Oct 20, 2023
• Deposit Date: Oct 21, 2023
• Publicly Available Date: Oct 23, 2023
• Journal: International Journal of Bank Marketing
• Print ISSN: 0265-2323
• Electronic ISSN: 0265-2323
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1108/IJBM-06-2023-0333