Modeling the platform-based banking in commercial banks of Iran

• Published in: Journal of banking regulation Vol. 23; no. 4; pp. 351 - 367
• Main Authors: Arayesh, Mohammad Bagher, Rezaeirad, Mostafa, Aidi, Mohammad, Lamuki, Tohfeh Ghobadi
• Format: Journal Article
• Language: English
• Published: London Palgrave Macmillan UK 01.12.2022; Palgrave Macmillan
• Subjects: Banking; Banking industry; Commercial banks; Economics and Finance; Finance; Financial Law/Fiscal Law; Original Article; Strategic management; Structural equation modeling; Iran; The banking industry; Grounded theory; Commercial banks; Platform banking
• ISSN: 1745-6452; 1750-2071
• DOI: 10.1057/s41261-021-00169-x

Platform-based banking provides opportunities for financial systems to increasing competition, stimulating a FinTech economy, and improving the availability and quality of service to the customers. Platform-based banking is a system that provides a user with a network of financial institution’s data through the use of application programming interfaces. With the help of platform banking, it is easy to show how data be created, accessed, and shared. The purpose of this paper is to provide a model of platform banking in commercial banks of Iran by benefiting banking experts. A mixed method was used in the present research including qualitative and quantitative analysis. The qualitative strategy of the present study is based on the grounded theory method, and the quantitative strategy is conducted using the structural equation model based on the Strauss and Corbin model. The main tool for collecting qualitative information was semi-structured interviews, in which the data were coded in three stages: open, axial, and selective coding. In the quantitative phase, the descriptive survey method was used to analyze and explain the proposed model through structural equations and using SmartPLS software. According to the codes which were obtained from the interviews, the 373 final codes were extracted in the form of 51 concepts, 25 sub-categories, and 6 main categories. In the quantitative part of the research, causal relationships between variables and testing the research hypotheses were performed. The findings show that the platform banking model has six components such as economic management and banking process reform, customers experience management, infrastructure engineering, and implementation mechanisms, digital strategic management of customer, and facilitate the achievement of structural productivity and digital governance in the shadow of knowledge partnerships with competing partners. Developing a model of platform banking model depends on the superior management of these components. Also, the research results indicate the confirmation of the conceptual model presented using the structural equation model. All structural model fit indices had acceptable values.