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The bank of things: An empirical investigation on the profitability of the financial services of the future

Manlio Del Giudice (Paris School of Business, Paris, France)
Francesco Campanella (Department of Economics, Second University of Naples, Capua, Italy)
Luca Dezi (Department of Business and Quantitative Studies, University of Naples "Parthenope", Naples, Italy)

Business Process Management Journal

ISSN: 1463-7154

Article publication date: 4 April 2016

Issue publication date: 4 April 2016

1622

Abstract

Purpose

The purpose of this paper is to study the existing relationship between the products offered by the banks of things and the relative return on equity (ROE). This can be used to highlight the benefit of carrying out investments to transform traditional banks into banks of things.

Design/methodology/approach

The sample used in this empirical research contained 3,692 banks that, in 2013, were located in 28 European countries. To determine whether the Internet of Things (IoT) has an effect on the banks’ profitability, the authors employed the classification analysis method (classification and regression tree).

Findings

The empirical analysis shows that a high ROE for banks is expressed by the following features: first, banks offer IoT retail services to customers; second, banks offer IoT corporate services to customers; third, banks offer customers a large number of home banking services; and finally, banks offer customers a large number of traditional investment services.

Research limitations/implications

The survey covers a sample of European banks. It would be necessary to extend the sample to other geographical areas. It would be possible to generalize the results.

Originality/value

Scientific research on the implications of the “Bank of things” are still few and fragmented.

Keywords

Citation

Del Giudice, M., Campanella, F. and Dezi, L. (2016), "The bank of things: An empirical investigation on the profitability of the financial services of the future", Business Process Management Journal, Vol. 22 No. 2, pp. 324-340. https://doi.org/10.1108/BPMJ-10-2015-0139

Publisher

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Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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