Digital banking internationalization
: digital banking, its utilization and strategies, and its effect on process, performance, and distance in the consumer lending industry

  • Aksel Sundberg Aas (Student)

Student thesis: Master's Thesis

Abstract

Through a literature review and semi-constructed interviews with a CEO operating in the digital consumer lending industry, this thesis analyses how chosen strategies and utilization of digital banking affects process, performance, and distance. The consumer lending industry experiences high competition and regulations, and many banks also seeks to gain further value from digitalization and different strategies. The findings indicate that the company utilizes digitalization at a low level in relation to new methods, but that a scalable digital platform, a cost leadership and focusing on unsecured loans, affect process and performance positively. Even though operating with traditional strategies and verticalization of products, the bank has been able to achieve a very low cost to income ratio, indicating high performance. It was possible to obtain a definition of a digital platform in the consumer lending industry. It is perceived as an important asset and enables processes to be simple and fast. The data also indicates that internationalizing to a long-distance country, versus a close distance country, increases negative effects and risk. But having a digital platform and operating within a Nordic partnership group, decreases the perceived risk.
Date of Award25 Oct 2022
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorRicardo Reis (Supervisor)

Keywords

  • Digital banking
  • Utilization
  • Efficiency
  • Internationalization
  • Process
  • Performance
  • Distance

Designation

  • Mestrado em Gestão e Administração de Empresas

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