Exploring the retail banking transformation under the open finance paradigm

Abstract

This thesis explores the impact of the Open Finance paradigm on the Retail Banking industry. By adopting a strategic and critical perspective, the research aims to contribute to the academic understanding of Open Finance, examining its technological enablers, regulatory frameworks and strategic business implications. The study identifies and analyzes several key dimensions of impact within the retail banking context: the new tense relationships of coopetition with non-banking partners, the business, the client with a focus on the trust frameworks and the profitability.

To quantitatively assess the financial implications of Open Banking implementation, a panel data model composed by 35 banks and 10 years length for a total of 350 observations is employed to measure its effect on bank profitability, using the ROA as proxy. The analysis is conducted on a sample of EU retail listed banks. The empirical findings provide evidence of statistically significant (weak) positive relationship, supporting the hypothesis that Open Banking strategies influence profitability outcomes.