How can Central and Eastern European bank cope with financial technology disruption?

Absztrakt (kivonat)

In this paper, I research banks’ reactions to digital, financial technology disruption. The central question is how Central and Eastern European banks try to keep up with digitalization and react to digitalization and financial technology start-ups’ threat. First, I analyse innovations and mainstream reactions to innovation. Then, I select corporate venturing as the reaction that fits banks the best. However, usually technology companies invest into internal start-ups and own venture capitals. Currently, the financial technology market is developing, and in my opinion, the market is after a chasm – right before the start of mainstream market. This entails that it is high time for established companies to enter the market. I am going to investigate OTP Bank’s and Raiffeisen Bank’s corporate venturing activities. Both of them have launched direct banks, and OTP Bank has invested into another venture, which copes with financial technology disruptors by creating a payment platform.