This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain the copyright without restrictions for their published content in this journal. HSSR is a SHERPA ROMEO Green Journal.
Business Strategies of Banks and Online Crowdfunding Platforms, Based on the Markets in North and South America
Corresponding Author(s) : Dariusz T. Dziuba
Humanities & Social Sciences Reviews,
Vol. 10 No. 3 (2022): May
Purpose of the study: The purpose of this article is to answer a few research questions: what business strategies are banks pursuing regarding crowdfunding platforms (in particular, lending); what forms of partnership do they implement on the continents of the Americas; what is the scope of implementation (use) of crowdfunding methods in banks on the continents of North and South America; how can the size of this market segment be estimated.
Methodology: The applications (platforms) of crowdfunding in individual banks from North and South America are analyzed. Based on the resources of the Internet, the implementation of banking crowdfunding and business strategies of the examined electronic platforms were identified.
Main findings: The considerations distinguished the market segment of banking crowdfunding in the Americas, as well as the implemented business strategies of banks regarding online platforms. The dominant share of the USA on a global scale was shown (186 projects).
Application of the study: The presented research relates to various scientific fields, e.g. economics and finance (alternative finance) or business informatics.
Original/Novelty of the study: The research managed to separate and estimate the size of the market segment of banking crowdfunding on the continents of North and South America.
ABA Banking (2018). How Banks Partner with Fintech for Digital Lending. ABA Banking Journal, March 26. https://bankingjournal.aba.com/.
Agrawal, A., Catalini, Ch. & Goldfarb, A. (2013a). Some Simple Economics of Crowdfunding. The National Bureau of Economic Research. NBER Working Paper, No. 19133. https://doi.org/10.3386/w19133
Agrawal A., Catalini, Ch. & Goldfarb, A. (2013b). Crowdfunding: Social Frictions in the Flat World?; University of Toronto, NBER Working Paper, 14 October.
Agrawal, A., Catalini, Ch. & Goldfarb, A. (2011). The Geography of Crowdfunding, The National Bureau of Economic Research (NBER). NBER Working Paper, No. 16820. https://doi.org/10.3386/w16820
Assadi, D. (2018). Crowdfunding: democratizing networking, financing and innovation. Journal of Innovation Economics & Management, 2(26), 3012. https://doi.org/10.3917/jie.026.0003
Badour, A., Lynde, D.J. & Firestone, J. (2017). Partnerships between Banks and Fintech Companies: A Continuing Trend for 2017. mccarthy, February 22. https://www.mccarthy.ca.
Biz2Credit (2021). Biz2Credit Case Study. https://aws.amazon.com.
Biz2Credit (2019). Biz2Credit Launches Biz2X, a Global SaaS Lending Platform for Banks. May 21, 2019, https://www.globenewswire.com.
Borello, G., Crescenzo, V. de & Pichler, F. (2015). The Funding Gap and The Role of Financial Return. Crowdfunding: Some Evidence From European Platforms; Journal of Internet Banking and Commerce, vol. 20, no. 1 (April), pp. 1-20.
Candoğan, S.T., Cornelius, P.B., Gokpinar, B., Kőrpeoğlu, E. & Tang, C.S. (2021). Product Development in Crowdfunding: Theoretical and Empirical Analysis. https://doi.org/10.2139/ssrn.3833525
CBinsights (2021). https://www.cbinsights.com/.
Collins, L., Swart, R. & Zhang, B. (2013). The Rise of Future Finance. The UK Alternative Finance Benchmarking Report. Nesta, University of California, Berkeley, University of Cambridge.
Cordova, A., Dolci, J. & Gianfrate, G. (2013). The Bearable Lightness of Crowdfunding: Evidences from Technology Projects. 4th European Conference on Corporate R&D and Innovation CONCORDi-2013, September 26-27, Seville.
Cumming, D.J., Leboeuf, G. & Schwienbacher, A. (2014). Crowdfunding Models: Keep-it-All vs. All-or-Nothing. Finance Meeting EUROFIDAI, AFFI Paper, December, Paris. https://doi.org/10.2139/ssrn.2447567
Dziuba, D.T. (2022). Initiatives to Implement and Use Crowdfunding Platforms in the Banks of UK, Italy and Other European Countries. Humanities and Social Sciences Reviews, 10(2), 07-15. https://doi.org/10.18510/hs sr.2022.1022
Gabison, G.A. (2015). Understanding Crowdfunding and its Regulations. JRC Science and Policy Report, European Commission, Luxembourg.
https://www.icg.city.com, retrieved online 30.11.2021.
https://www.tracxn.com/, retrieved online 30.11.2021.
https://www.zltymelon.sk/aktuality/, retrieved online 30.11.2021.
Junghanns, H. & Niebudek, M. (2019): Platform Banking & Digital Ecossytems. Cooperation with third-party providers as an iand mportant factor for providing a wide range of services and products. PwC Study, PwC.
Klus, M.F., Lohwasser, T.S., Holotiuk, F. & Moormann, J. (2019). Strategic Alliances between Banks and Fintechs for Digital Innovation: Motives to Collaborate and Types of Interaction. The Journal of Entrepreneurial Finance, Vol. 21, No. 1. Available at: https://digitalcommons.pepperdine.edu/jef/vol21/iss1/1.
Kontan (2021). Modal Rakyat dapat penyaluran dana dari Bank Jago dengan target Rp 50 miliar. Juni 15, https://kangan.kontan.co.id/.
Kraft, J. von der, Sweers, D. & Jurjens, L. (2021). Collaboration at the core: evolving partnerships between banks and FinTechs. EY Report, March 23. EY.
Lambert, T. & Schwienbacher, A. (2010). An Empirical Analysis of Crowdfunding. Université catholigue de Louvain & Univerity of Amsterdam, Business School; retrieved online: http://ssrn.com/.
LendingClub (2015). Lending Club Partners With BancAlliance, a National Consortium of 200 Community Banks. https://ir.lendingclub.com/.
Lichtenwald, R. (2016). Banks and Marketplace Lending Platforms: Ideal Partners?, LendItFintech News, August 17, https://www.lendacademy.com/.
Macht, S.A. & Weatherston, J. (2014). The Benefits of Online Crowdfunding for Fund-Seeking Business Ventures. Strategic Change, 23(1-2). https://doi.org/10.1002/jsc.1955
McCreadie, G. (2015). Lending Club Teams Up with Small Banks. Altfi, February 9. https://www.altfi.com/.
Michaels, R. (2015). How Crowdfunding Is Challenging the Banking Sector, International Banker, September 14, https://internationalbanker.com/.
Prove (2021). Mutually Beneficial Bank-FinTech Collaboration Models. https://www.prove.com.
Pymnts (2021). SoFi Signs $ 22.3 Million Acquisition Deal For Golden Pacific Bank. Pymnts, March 9. https://www.pymnts.com/.
Röthler, D. & Wenzlaff, K. (2011). Crowdfunding Schemes in Europe. EENC Report, European Expert Network on Culture, September.
Wash, R. (2013), The Value of Completing Crowdfunding Projects, Proceedings of the International Conference on Weblogs and Social Media (ICWSM), Boston, MA, July.
World Bank (2013). Crowdfunding`s Potential for the Developing World. infoDev, Finance and Private Sector Development Department, Washington, DC, World Bank