Banks and FinTech Acquisitions

FinTech and cloud in banking

The use of technologies in financial services is not new. Financial institutions have, for a long time, been implementing technological solutions to support the provision of services to their customers and to ensure compliance with their regulatory obligations. They have also long relied on outsourcing arrangements with external service providers for the provision of technological solutions. Ho...

Do Banks Monitor Corporate Decisions? Evidence from Bank Financing of Mergers and Acquisitions

We examine whether banks, in providing financing for the deals, monitor firms mergers and acquisitions to the extent that will benefit acquirers shareholders. Inconsistent with the conventional theoretical argument, we do not find that bank-financed deals are associated with better stock or accounting performance than bond-financed deals or deals paid with internal cash. There is strong evidenc...

Why Do Banks Disappear: The Determinants of U.S. Bank Failures and Acquisitions

This paper examines the determinants of individual bank failures and acquisitions in the United States during 1984-1993. We use bank-specific information suggested by examiner CAMELrating categories to estimate competing-risks hazard models with time-varying covariates. We focus especially on the role of management quality, as reflected in alternative measures of xefficiency and find the ineffi...

Innovation in Payments: The Future is Fintech

Trust in Lending

This paper develops a theory of trust in lending, and uses it to analyze the potential market segmentation between banks and fintech lenders. Trust enables lenders to have assured access to financing regardless of market conditions, whereas a loss of trust makes this access conditional on market conditions and the perceived incentives of self-interested lenders to make prudent loans. As long as...