Competition between marketplace banks and traditional banks
Abstract. The article focuses on the current dynamic state of competition between traditional commercial banks and new financial market players - the banks based on large marketplaces (OZON, Wildberries, Yandex Market). The authors analyzed: the development strategies of both groups of banks, their key products, target audience and market positions. Based on the method of calculatingthe Herfindahl-Hirschman index, the conclusion is drawn about the high concentration of the market in the new market segment of captive marketplace banks. The article examines in detail the arguments of the parties in the discussion about potential price discrimination and observance of equal conditions of competition. In conclusion, it is argued that the future of the financial sector lies not in direct competition, but in cooperation between traditional banks and marketplace banks. The future of the financial sector is based on the formation of strategic alliances between classical banks, which have a high level of capital and sufficient expertise in risk management, and marketplace banks with a highly growing customer base. Such an alliance can create a synergistic effect aimed at creating new types of services and increasingthe overall efficiency of the sector for end users.
Keywords: marketplace banks, traditional banks, competition, ecosystem, fintech, Herfindahl-Hirschman index, cooperation, open API.
Highlights:
- the marketplace banking segment is highly concentrated, as evidenced by the HHI index calculation;
- the key competitive advantage of marketplace banking is the deep integration of financial services into a consumer path on the platform;
- the main area of conflict between traditional banks and marketplaces lies in the area of acquiring and price discrimination depending on the payment method.
Guliya K. Ustinova, Daria M. Alkina - Samara State University of Economics, Samara, Russia