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cc-by (c)  Arenas et al., 2024
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/221821

Banking FinTech and stock market volatility? The BIZUM case

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Abstract This paper investigates whether and how the adoption of FinTech by incumbent banks affects their stock price volatility. BIZUM, a Spanish FinTech real-time digital payment solution was adopted by incumbent banks in 2016 and therefore provides new evidence of real-world ex-post implementation. The results indicate that the adoption of BIZUM by incumbent banks had a significant effect, reducing their stock price volatility after it was launched. This finding suggests that investors were informed of and acknowledged the advantages of BIZUM, thus, use their adoption of FinTech Start-up strategy to offset adverse market circumstances. This paper provides insights for investors and international institutions regarding the role of the pricing of banking related assets, implications for incumbent banks whose portfolios are exposed to investments in disruptive technology and for banking regulators and authorities vis-à-vis risk related considerations of the adoption by banks of FinTech strategies.

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ARENAS, Laura, VIZUETE LUCIANO, Emilio and GIL LAFUENTE, Anna Maria. Banking FinTech and stock market volatility? The BIZUM case. Research In International Business And Finance. 2024. Vol. 71, num. 1-14. ISSN 0275-5319. [consulted: 13 of June of 2026]. Available at: https://hdl.handle.net/2445/221821

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