The rise of tech giants in the fund sales industry: an example of how information and digital technology rebuild platform economy

Unlike its American counterpart, the Chinese financial industry has been challenged by tech giants through their digital platforms. As entrance of asset management industry, fund sales is at center revolution, with commercial banks and fighting for control. Some scholars have discussed competition, but none them competition comparing common features as Moreover, in a two-sided multihoming market that long ignored will prevail future. With similar coverage rates both managers investors, how do fintechs use information technology gobbling big chunk banks’ profit. This article filled gap examining platforms, including membership externality, usage behavior. Usage externality crucial this competition. It promoted efficiency unlocking scale effect using data analysis. However, unlike between other little impact on among giants. prevailing behaviors to high degree, newly entered platforms provided almost no additional externality.