Future Business Models in Financial Services: A Legitimacy-based Perspective

Purpose – The purpose of this paper is to describe the present interest in the current and predicted business models of Massive Open Online Courses (MOOC); the business models that are being used by MOOC platforms and MOOC providers; discussion of the key issues and challenges; predictions about the future MOOC business models from the perspectives of platforms, providers and consumers. Design/methodology/approach – Review of the current literature for business models and costs for MOOCs and including the business models of higher education and possible future of the higher education system. Findings – The findings of this paper show that most MOOCs are currently based upon a “freemium” model where content is provided freely and additional services are charged for; that there are already a range of different “flavours” of MOOC and that this range is likely to further develop over time with some clear winners emerging; and that completely free and open MOOCs are not likely to be the focus of growth in the future, rather MOOCs that are sustained through charges to customers. Practical implications – To inform the debate about likely future business models and to help greater understanding of possible business models for MOOCs to inform decision-making by managers at universities. Originality/value – To inform the debate about likely future business models and to help greater understanding of possible business models for MOOCs to inform decision-making by managers at universities.

Since most studies of the financial services industry have viewed the structure of the industry as fixed, there has been little discussion of its determinants. Events of the past few years make it clear that the structure of the financial services industry is changing much more rapidly than it did between the end of World War II and the mid 1960's. This paper categorizes and discusses the major factors affecting the structure of the financial services industry. The concept of supply and demand provides a useful framework for categorizing these factors. Demand is best analyzed in terms of the demand for various characteristics or attributes of financial services. These include: 1) yield; 2) liquidity; 3) safety; 4) convenience of access to the services, 5) financial advice or information. The demand for these various characteristics or attributes depends importantly on demographic and economic factorsThe supply of financial services is determined by the cost curves associated with those services which are in turn determined by the cost of the factors of production and the underlying production function. Three aspects of these cost curves have an important effect on the supply of financial services and the structure of the industry — economies of scale, economies of joint production and distribution, and the management of risk. The nature of the cost and production functions underlying the supply of financial services and the structure of the industry is affected by several exogenous factors. Foremost among them are the economy, technology, regulation, and the role of the Federal government in financial service marketsBased on the discussion of how the various exogenous factors affect the structure of the financial services industry, an attempt is made to predict how structure will change as deregulation occurs.

This paper outlines an ongoing programme of research, which concerns a methodology for the development and analysis of business models concerning mobile service platforms. These platforms result from the generative system that is the mobile Internet combined with mobile devices, further enhanced by advanced user interaction modalities. The mobile telecoms industry seeks to control the mobile Internet for profit, whilst maintaining its capacity for innovative and appealing content and services. The methodology introduced in this paper, which attempts to address the need to balance the need for control in business models, whilst maintaining the mobile internet?'s generativity, consists of three parts. First it builds potential business models for future services within the mobile telecoms industry using value networks. Second, it identifies positions of sustainable economic power for industry players using control points. Third, it examines how external factors may lead to changes within those future business models using triggers. In so doing the paper brings together a methodology, developed by the Value Chain Dynamics Working Group (VCDWG), part of the MIT Communications Futures Program (CFP), and state of the art business modeling literature, which is emerging from European universities. This paper presents an example using mobile service platforms as a focus of analysis, after which an agenda for further research is outlined. The work covered in this paper is part of a current research programme, namely the User Interfaces for Breakthrough Services work area of the Core 5 Research Programme of the Virtual Centre of Excellence in Mobile & Personal Communications (Mobile VCE). The programme is jointly funded by the Mobile VCEs' industrial member companies and the UK Government, through the Engineering and Physical Sciences Research Council (EPSRC).

A paradigm shift is taking place today that provides a compelling value proposition for organizations and requires the adoption of new business models for the management of their core activities in a competitive way. The new emerging business models are related with open innovation, cloud computing approach, as well as social networking, which creates opportunities for firms to harvest the resources and knowledge that could be found outside the firm's boundaries. However, in order for firms to grasp most of the emerging technologies, they should reconfigure their activities to tackle the challenge and opportunity presented by new innovations and technology trends. In this chapter, the authors demonstrate the changes that these new trends are witnessing for the business models of firms from a provider and user perspective.

A paradigm shift is taking place today that provides a compelling value proposition for organizations and requires the adoption of new business models for the management of their core activities in a competitive way. The new emerging business models are related with open innovation, cloud computing approach, as well as social networking, which creates opportunities for firms to harvest the resources and knowledge that could be found outside the firm’s boundaries. However, in order for firms to grasp most of the emerging technologies, they should reconfigure their activities to tackle the challenge and opportunity presented by new innovations and technology trends. In this chapter, the authors demonstrate the changes that these new trends are witnessing for the business models of firms from a provider and user perspective.

The crux of this conceptual study throws a lime light on repercussion of Financial Technology (FinTech) on the agility of India’s financial services Industry. This study also provides a snapshot of how financial and payment services provided with the support of financial technologies and tools by financial services firms in India. This conceptual study clearly highlights potential growth of India’s FinTech industry in the light of digital India. As FinTech continues to evolve, we can expect these technologies to further shape the means the banking and financial services and products are delivered, with even more innovative solutions on the horizon. The agility of the FinTech industry comes from a combination of strategic and technological factors. The key strategic factors that enhance the agility of FinTech firms are cross-functional teams, smaller workforce, flat organizational structure, agile leadership, workforce diversity, collaborative mindsets, customer-orientation mindsets, etc. The key technologies in the FinTech industry that are driving a paradigm shift in customer experiences are emerging technologies such as Machine Learning (ML), Artificial Intelligence (AI), Blockchain, Cryptocurrencies, Robotic Process Automation, Open Banking and APIs, Biometric Authentication, Cloud Computing, etc. The rapid adoption of evolving technologies in FinTech sectors have significantly transformed the way the financial and banking services are experienced by the customers and effectively delivered by the FinTech firms. These technologies collectively improve customer experiences by ensuring the accessibility, security and personalization of financial services, which in turn fosters greater customer loyalty and satisfaction.

Fintech and regtech: Impact on regulators and banks

The study aims to investigate the financial technology (FinTech) factors influencing Chinese banking performance. Financial expectations and global realities may be changed by FinTech’s multidimensional scope, which is lacking in the traditional financial sector. The use of technology to automate financial services is becoming more important for economic organizations and industries because the digital age has seen a period of transition in terms of consumers and personalization. The future of FinTech will be shaped by technologies like the Internet of Things, blockchain, and artificial intelligence. The involvement of these platforms in financial services is a major concern for global business growth. FinTech is becoming more popular with customers because of such benefits. FinTech has driven a fundamental change within the financial services industry, placing the client at the center of everything. Protection has become a primary focus since data are a component of FinTech transactions. The task of consolidating research reports for consensus is very manual, as there is no standardized format. Although existing research has proposed certain methods, they have certain drawbacks in FinTech payment systems (including cryptocurrencies), credit markets (including peer-to-peer lending), and insurance systems. This paper implements blockchain-based financial technology for the banking sector to overcome these transition issues. In this study, we have proposed an adaptive neuro-fuzzy-based K-nearest neighbors’ algorithm. The chaotic improved foraging optimization algorithm is used to optimize the proposed method. The rolling window autoregressive lag modeling approach analyzes FinTech growth. The proposed algorithm is compared with existing approaches to demonstrate its efficiency. The findings showed that it achieved 91% accuracy, 90% privacy, 96% robustness, and 25% cyber-risk performance. Compared with traditional approaches, the recommended strategy will be more convenient, safe, and effective in the transition period.

In 2007 Luxembourg had the highest GDP per capita in the world at $80,800 per person. (CIA) The financial services industry, which includes banks, investment services, advisory services, and holding companies, accounts for nearly one quarter of Luxembourg’s GDP. The most important factor in the industry’s continued growth has been the country’s “nimble” tax and regulatory frameworks. Over the last forty years, financial services in Luxembourg have grown from a minor sector to the largest sector of the nation’s economy. Following the initial growth in the 1970s, attributable to the decline in the steel industry and the tax and regulatory policies of neighboring states, the nimble tax and regulatory policies of Luxembourg have provided a strong foundation for the sector’s growth and international competitiveness. This article will analyze the financial services industry in Luxembourg in relation to its tax and regulatory policies. The first section examines the ways in which the decline of steel, coupled with Luxembourg’s location, languages and stable political environment, led to the growth and prominence of financial services in the economy. The following section assesses the ways in which the tax and regulatory policies are nimble and aid the financial services industry’s continued success, and offers three specific examples of Luxembourg’s nimble response to challenges in tax and regulatory policies. The final section examines the implications of Luxembourg’s tax and regulatory policies for other economies, showing that the policies have the ability to positively impact surrounding nations.

The subject of the research is trends in the implementation of digital technologies in the banking sector. The relevance of the paper is due to the objective processes of global digital intervention of technologies in all spheres of human life and society. The research aims to identify, systematize and generalize key trends and regulations in the development of digital business models of banking services in Industry 4.0. For the first time, the authors identified and systematized modern trends and regulations in the development of digital business models of banking services in Industry 4.0, offered their own conceptual vision of the concept of “digital business model of banking services”. The authors apply general scientific, philosophical, analytical, statistical, problem chronological and historical-genetic methods, as well as methods of expert assessments. The article summarizes the main stages of the evolution of business models of the banking sector, reveals substantive and methodological differences between traditional remote banking services and digital banking, highlights the main business models for organizing digital banking; provides up-to-date data on the level of development of digital banking in the main geographic zones of the world; shows the dynamics and key areas of investment in the fintech industry in 2014–2019 and provides a critical analysis of their conditions; identifies problematic aspects of the development of digital business models of banking; describes the functionality of the main digital business models of Russian banks with the author’s assessment of their capabilities and examples of their use in Russian practice. The authors conclude that the main drivers of digitalization of the banking sector are stable growth of non-cash payments in the world and in Russia; stable growth of the global digital banking market; the impact of the COVID-19 pandemic on the active demand of consumers of remote financial services; increased competition in the retail banking market; and a significant decrease in margins for traditional banking products. Identification and systematization of trends and regulations in the implementation of digital business models of banking services can form the basis for further analysis of the specifics of digitalization and personalization of digital banking in Industry 4.0 for the sustainable socio-economic development of the country in terms of possible advantages and threats to the security of financial resources and personal data of customers.

Many firms redesign their business models to be service-oriented in light of the increasingly central role that services play in their businesses and strategies. Two fundamental questions should be addressed in designing service-oriented business models: “how is value created for and with the customers by the service provider?” and, “how is the value captured by the service provider?” The first question deals with “value creation” while the second addresses “value capture” – both of which are important facets of any business model. Thus, we suggest that a service-oriented business model that addresses these two questions can sustain the viability and competitiveness of the firm as a service provider. The extant research mainly focuses on the service design from the value creation perspective. Thereby, service providers’ value capture and its trade off with value created for and with service customers have been inadequately addressed. In this paper, adopting a holistic perspective, we introduce a modeling framework that can assist in understanding, analysis and design of value (i.e. value creation and capture and their interplay) in service-oriented business models. Our modeling framework consists of a set of conceptualizations and a graphical representation. The conceptualizations are derived from insights of the extant theories, constructs and frameworks on value creation and capture in business and service-oriented business models. We illustrate the applicability of our framework by conducting a descriptive case study of the value creation and capture in Amazon’s business model in the period between 1997 and 2001.

Objective: Business Model Innovation approaches in service business model context are not adequately studied in the extant literature and there is a clear need for extension of different business model typologies for innovating service business models. Principal aim of this study is to explore how service business model archetypes can be explained as a business model representation such as Business Model Canvas, particularly what the term managed services really mean. Also, it is intended to add clarity to current business model innovation approaches in providing managed services, especially business process services in a service value chain. This will prompt further research to address related implications of networked business model setup and information technology as an enabler in managed services context. Methods/Statistical Analysis: Established framework of Business Model Canvas from extant literature and recent trends in business model representations that cover digitally enabled service business models are compared and contrasted. In line with service dominant logic, approaches for management and optimization of key resources and key activities are used as basis of stacking up different service business model archetypes. Service value chain and network business model implications are emphasized for further differentiating the innovation approaches in managed services business models. Findings: Among various business model design tools and representations, service business models can be better represented as a business model canvas with special emphasis on how key resources and key activities are managed and optimized in a service value chain. Digital enablement with the use of IT and/or cloud infrastructure shall act as accelerators for effective business model innovation in service context. Service business models shall be categorized as a stack of service offerings such as outsourced services, resource outsourcing, professional services, BPO/ITeS, managed services and Business Process As A service (BPaaS). services currently mean to only manage IT services but there is new paradigm of Managed Business Services which is emerging. Applications/Improvements: Suggested findings of this paper and the identification of broad types of service offerings, which clearly differentiate managed services from other service models, can be applied in practice. This approach shall bring in more consensuses about understanding of managed services business models among practitioners and researchers.

The article deals with the dependence of the competitiveness of industrial enterprises on the level of innovation activity. The essence and main characteristics of the competitive advantages of the enterprise from the point of view of innovative activity in the course of innovative activity are highlighted. One of the factors that can increase the competitiveness of business is the active use of innovative production technologies, which will ensure a continuous improvement of scientific, technical, industrial, financial and social activities in the context of changes in the institutional environment. The results of analytical research of priority sectors of Ukrainian economy from the point of view of innovative activity are presented. With the transition of the economy to the next technological institution, it is worth talking about the change of priority industries in the structure of industry - from low-processing with low added value to innovative high-tech and high-margin. As the first Ukrainian Business Innovation Index showed, only some companies are ready to invest in innovation and have a strategic vision. According to research, most companies are still not ready and do not plan to make fundamental changes in their business models in the near future. Innovation is limited to the introduction of new production technologies, automation of tasks, training of staff new skills, changing approach to marketing and communications. The necessity of systematic support of innovative activity is substantiated, the basic directions of optimization of structure of economy of Ukraine are allocated. The European vector of Ukraine gives a good chance to digitize the processes. In particular, for state-owned companies in areas such as energy and oil and gas, the prospect of digitalization has become the prospect of entering the European Union. However, without major changes to the regulatory system, government priorities, and extensive government-business cooperation, no real major changes can be expected. The issue is not only in the tax field or subsidization, but also in education, digital skills of the population. The necessity of updating the issue of development of high-tech sectors of the economy has been proved, which will increase the competitiveness of industrial enterprises. Given the trends identified, it is appropriate to emphasize the need to take concrete actions to change the structure of the economy, to increase exports of high-tech products, the creation of export-credit agencies, industrial parks.

In most European countries direct healthcare costs stand for around 10% of the GDP. Health spending is rising faster than GDP and it is estimated to reach to 16% of GDP 2020 in OECD countries. There is clear evidence that more and more health care will be delivered outside hospitals - in day clinics, surgeries, at patients homes or - via the internet. What service models will be applied to make the Future Internet serviceable and how may future business models look like?

The smart city concept has entered the public debate over the last decade as a concept for the development of urban space for the efficiency, improvement and availability of public and private services and sustainability. The Business Models Canvas is most often used in the literature for the creation of business models of smart services. On the basis of the above, we investigated whether the Business Models Canvas is the most used tool for creating business models for public smart services in Slovakia and whether cities and municipalities need to evaluate their models for the provision of public smart services. However, there is no commonly used methodology for evaluating smart city business models to help both practitioners and researchers choose the best option. The goal of the research is to create a tool for evaluating business models of public smart services in smart cities. The base method used was the Delphi method, based on the previous primary (content) analysis process of the Business Model Canvas best practices. In total, 709 towns and villages participated in the primary research. Subsequently, the obtained data were evaluated and used for further research using the Delphi method, in which 28 experts participated. The research was carried out between 2020 and 2023 in Slovakia. Primary research confirmed that the Business Models Canvas is the most used tool for creating business models for public smart services in Slovakia and cities and municipalities need to evaluate their models for the provision of public smart services. Areas and basic building blocks were also identified for the design of the evaluation methodology of business models for public smart services. The proposal of the methodology for evaluating business smodels for public smart services in Slovakia was implemented using the Delphi method with the cooperation of 28 experts. Based on the results of the Delphi method, a methodological procedure for evaluating business models for public smart services was established. The methodology proposed in the paper is a simple, organized, flexible and transparent system that facilitates the work of evaluators of business models of public smart services and marketing.