Abstract
Many factors are changing the financial services industry. At first, we have to consider the macroeconomic scenario characterized by low interest rates, leading to a reduction of the institutions’ profitability and promoting investments aimed to increase the organizations’ efficiency. The regulatory framework is another element to consider, since, after the financial crisis, the authorities introduced new norms, some of them are currently under implementation, like the Market in Financial Instruments Directive II, the Insurance Distribution Directive or the General Data Protection Regulation. The last element we have to consider is the technological one: during the years, many innovations changed the customers’ behaviors, introducing new needs that institutions have to take into account in their strategic plans. Google, Apple, Facebook and Amazon, also called GAFA, have introduced new ways to interact with consumers that are based on instant and easy access to different functionalities.
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Notes
- 1.
Moneyfarm is an example of this business model’s type. It is an Italian start-up founded in the 2011, that is offering robo-advisory services both in Italy and in UK. For more information read Financial Times (2018).
- 2.
More details of the sample are reported in Fig. 1.
- 3.
They are two pseudo R-square values and they indicate approximately how much the variation in the outcome is explained by the model, since they are built differently with respect of R-square measures of OLS regressions.
- 4.
Model classification is a measure that allows to test the prediction generated by the model, classifying the probability that the model could generate correct predicted categories based on the values of the predictor variables. The cut value is set to 0.5, hence we plotted in Fig. 3 the ROC curves of the regressions. We can notice that areas under the ROC curves are higher than 0.5 in all the regressions, proving the good predictive power of the model.
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Piobbici, F., Rajola, F., Frigerio, C. (2019). Open Innovation Effectiveness in the Financial Services Sector. In: Mehandjiev, N., Saadouni, B. (eds) Enterprise Applications, Markets and Services in the Finance Industry. FinanceCom 2018. Lecture Notes in Business Information Processing, vol 345. Springer, Cham. https://doi.org/10.1007/978-3-030-19037-8_2
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