Skip to main content
SpringerLink
Log in

Relationship banking and information technology: the role of artificial intelligence and FinTech

  • Original Article
  • Published:
Risk Management Aims and scope Submit manuscript

Abstract

Banks have no time for complacency. They need to re-evaluate their competitive advantages in light of profound changes driven by advances in information technology (IT) and competitive pressure from FinTech companies. This article emphasizes that banks should not abolish relationship banking, which nurtures close contact with bank customers. A long-term orientation of relationship banking streamlines incentives and supports the long-term needs of bank customers. However, banks might be lured into transaction banking due to the presence of IT-driven economies of scale and competition from FinTech start-ups and IT companies. In this light, the article evaluates the role of distances, artificial intelligence, and behavioral biases. Implications for stability in banking are explored. We argue that relationship banking can overcome its drawbacks, but it needs to adjust to the new reality in order to survive.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. Obtained from the ECB Statistical Data Warehouse (http://sdw.ecb.europa.eu) and from the FDIC webpage (https://www5.fdic.gov/hsob/HSOBRpt.asp).

  2. The evidence from the introduction of retail payments in Europe shows that sometimes IT developments need to be supported by regulation. Increasing competition, establishing customer protection policies, and limiting large cash payments are needed (Hasan et al. 2014).

  3. Fungácová et al. (2016) analyze the level and determinants of trust in banking across countries and point to the importance of socioeconomic factors. Trust in banks is higher for women, increases with income, and is affected by an individual’s religious, political, and economic values.

  4. Directive 2015/2366/EU of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC, and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC.

  5. A famous example is Microsoft’s artificially intelligent Twitter bot named Tay. After Tay was exploited by a group of users and spammed with inflammatory messages, it began tweeting racist messages itself. Subsequently, Microsoft has released Zo, a censored version of Tay.

  6. Zwikael and Globerson (2006) find a positive but low impact of risk management planning on project performance. Miloš Sprčić et al. (2016) identify a positive impact of enterprise risk management on a firm value in a short run but not in a long run.

References

  • Agarwal, S., and I. Ben-David. 2014. Loan Prospecting and the Loss of Soft Information. Journal of Financial Economics. Forthcoming. https://ssrn.com/abstract=2403669.

  • Agarwal, S., I. Ben-David, and V. Yao. 2015. Collateral Valuation and Borrower Financial Constraints: Evidence from the Residential Real Estate Market. Management Science 61 (9): 2220–2240.

    Article  Google Scholar 

  • Agarwal, S., I. Ben-David, and V.W. Yao. 2016. Systematic Mistakes in the Mortgage Market and Lack of Financial Sophistication. Journal of Financial Economics. March 1. Charles A. Dice Working Paper No. 2016-09. Forthcoming.

  • Agarwal, S., S. Chomsisengphet, N. Mahoney, and J. Stroebel. 2014. Regulating Consumer Financial Products: Evidence from Credit Cards. Quarterly Journal of Economics 130: 111–164.

    Article  Google Scholar 

  • Agarwal, S., J. C. Driscoll, X. Gabaix, and D. Laibson, 2009. The Age of Reason: Financial Decisions over the Life Cycle and Implications for Regulation. Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, 40(2): 51–117.

  • Agarwal, S., and R. Hauswald. 2010. Distance and Private Information in Lending. Review of Financial Studies 23 (7): 2757–2788.

    Article  Google Scholar 

  • Aral, S., C. Dellarocas, and D. Godes. 2013. Introduction to the Special Issue—Social Media and Business Transformation: A Framework for Research. Information Systems Research 24: 3–13.

    Article  Google Scholar 

  • Autor, D.H., and D. Dorn. 2013. The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market. American Economic Review 103 (5): 1553–1597.

    Article  Google Scholar 

  • Bapna, R., and A. Umyarov. 2015. Do Your Online Friends Make You Pay? A Randomized Field Experiment on Peer Influence in Online Social Networks. Management Science 61 (8): 1902–1920.

    Article  Google Scholar 

  • Bartoli, F., G. Ferri, P. Murro, and Z. Rotondi. 2013. SME Financing and the Choice of Lending Technology in Italy: Complementarity or Substitutability? Journal of Banking & Finance 37 (12): 5476–5485.

    Article  Google Scholar 

  • Batten, J.A., I. Lončarski, and P.G. Szilagyi. 2018. When Kamay Met Hill: Organisational Ethics in Practice. Journal of Business Ethics 147 (4): 779–792.

    Article  Google Scholar 

  • Beck, T., V. Ioannidou, and L. Schäfer. 2016. Foreigners vs. Natives: Bank Lending Technologies and Loan Pricing. Management Science. Forthcoming.

  • Beijnen, C., and W. Bolt. 2009. Size Matters: Economies of Scale in European Payments Processing. Journal of Banking & Finance 33 (2): 203–210.

    Article  Google Scholar 

  • Berg, T., M. Puri, and J. Rocholl 2016. Loan Officer Incentives, Internal Rating Models and Default Rates (October 25, 2016). AFA 2013 San Diego Meetings Paper. Available at SSRN: https://ssrn.com/abstract=2022972.

  • Berger, A.N., and L.K. Black. 2011. Bank Size, Lending Technologies, and Small Business Finance. Journal of Banking & Finance 35 (3): 724–735.

    Article  Google Scholar 

  • Berger, A.N., N.H. Miller, M.A. Petersen, R.G. Rajan, and J.C. Stein. 2005. Does Function Follow Organizational Form? Evidence from the Lending Practices of Large and Small Banks. Journal of Financial Economics 76: 237–269.

    Article  Google Scholar 

  • Berger, A.N., and G.F. Udell. 2006. A More Complete Conceptual Framework for SME Finance. Journal of Banking & Finance 30: 2945–2966.

    Article  Google Scholar 

  • Boot, A.W.A. 2000. Relationship Banking: What Do We Know? Journal of Financial Intermediation 9: 7–25.

    Article  Google Scholar 

  • Boot, A.W.A. 2011. Banking at the Cross-Roads: How to Deal with Marketability and Complexity? Review of Development Finance 1 (3–4): 167–183.

    Article  Google Scholar 

  • Boot, A.W.A. 2014. Financial Sector in Flux. Journal of Money, Credit and Banking 46 (1): 129–135.

    Article  Google Scholar 

  • Boot, A.W.A. 2017. The Future of Banking: From Scale & Scope Economies to Fintech. European Economy - Banks, Regulation and The Real Sector 2: 77–95.

    Google Scholar 

  • Boot, A.W.A., and M. Marinč. 2008. The Evolving Landscape of Banking. Industrial and corporate change 17 (6): 1173–1203.

    Article  Google Scholar 

  • Boot, A.W.A., and L. Ratnovski. 2016. Banking and Trading. Review of Finance 20 (6): 2219–2246.

    Article  Google Scholar 

  • Boot, A.W.A., and A.V. Thakor. 2000. Can Relationship Banking Survive Competition? Journal of Finance 55 (2): 679–713.

    Article  Google Scholar 

  • Buchak, G., G. Matvos, T. Piskorski, A. Seru. 2017. Fintech, Regulatory Arbitrage, and the Rise of Shadow Banks. NBER Working Paper No. 23288. March 2017.

  • Burtch, G., A. Ghose, and S. Wattal. 2014. Cultural Differences and Geography as Determinants of Online Prosocial Lending. MIS Quarterly 38 (3): 773–794.

    Article  Google Scholar 

  • Bushman, R. M., C.D. Williams, and R. Wittenberg-Moerman. 2017. The Informational Role of the Media in Private Lending. Journal of Accounting Research 55: 115–152.

    Article  Google Scholar 

  • Campbell, D., and F. Frei. 2010. Cost Structure, Customer Profitability, and Retention Implications of Self-Service Distribution Channels: Evidence from Customer Behavior in an Online Banking Channel. Management Science 56 (1): 4–24.

    Article  Google Scholar 

  • Cerqueiro, G., H. Degryse, and S. Ongena. 2011. Rules versus Discretion in Loan Rate Setting. Journal of Financial Intermediation 20 (4): 503–529.

    Google Scholar 

  • Ciciretti, R., I. Hasan, and C. Zazzara. 2009. Do Internet Activities Add Value? Evidence from the Traditional Banks. Journal of Financial Services Research 35 (1): 81–98.

    Article  Google Scholar 

  • Cole, S., M. Kanz, and L. Klapper. 2015. Incentivizing Calculated Risk-Taking: Evidence from an Experiment with Commercial Bank Loan Officers. Journal of Finance 70: 537–575.

    Article  Google Scholar 

  • Constantiou, I.D., and J. Kallinikos. 2015. New Games, New Rules: Big Data and the Changing Context of Strategy. Journal of Information Technology 30 (1): 44–57.

    Article  Google Scholar 

  • Cortés, K., R. Duchin, and D. Sosyura. 2016. Clouded Judgment: The Role of Sentiment in Credit Origination. Journal of Financial Economics 121 (2): 392–413.

    Article  Google Scholar 

  • Currie, W.L., and T. Lagoarde-Segot. 2017. Financialization and Information Technology: Themes, Issues and Critical Debates—Part I. Journal of Information Technology 32 (3): 211–217.

    Article  Google Scholar 

  • Darolles, S. 2016. The Rise of Fintechs and Their Regulation. Financial Stability Review 20: 85–92.

    Google Scholar 

  • de Bakker, K., A. Boonstra, and H. Wortmann. 2010. Does Risk Management Contribute to IT Project Success? A Meta-analysis of Empirical Evidence. International Journal of Project Management 28 (5): 493–503.

    Article  Google Scholar 

  • Degryse, H., and S. Ongena. 2005. Distance, Lending Relationships, and Competition. Journal of Finance 60 (1): 231–266.

    Article  Google Scholar 

  • Degryse, H., and S. Ongena. 2007. The Impact of Competition on Bank Orientation. Journal of Financial Intermediation 16 (3): 399–424.

    Article  Google Scholar 

  • DeYoung, R., W.W. Lang, and D.L. Nolle. 2007. How the Internet Affects Output and Performance at Community Banks. Journal of Banking and Finance 31 (4): 1033–1060.

    Article  Google Scholar 

  • DeYoung, R., D. Glennon, and P. Nigro. 2011. The Information Revolution and Small Business Lending: The Missing Evidence. Journal of Financial Services Research 39 (1): 19–33.

    Article  Google Scholar 

  • Diamond, D. 1984. Financial Intermediation and Delegated Monitoring. Review of Economic Studies 51: 393–414.

    Article  Google Scholar 

  • Drummer, D., S. Feuerriegel, and D. Neumann. 2017. Crossing the Next Frontier: The Role of ICT in Driving the Financialization of Credit. Journal of Information Technology 32: 218–233.

    Article  Google Scholar 

  • Duarte, J., S. Siegel, and L. Young. 2012. Trust and Credit: The Role of Appearance in Peer-to-Peer Lending. Review of Financial Studies 25 (8): 2455–2484.

    Article  Google Scholar 

  • Ferri, G., and P. Murro. 2015. Do Firm-Bank ‘Odd Couples’ Exacerbate Credit Rationing? Journal of Financial Intermediation 24 (2): 231–251.

    Article  Google Scholar 

  • Filip, D., K. Jackowicz, and Ł. Kozłowski. 2016. The Influence of Social Media and Internet Presence on Small, Local Banks’ Market Power: New Evidence from an Emerging Economy. March 12. Available at SSRN: https://ssrn.com/abstract=2746897.

  • Fisman, R., D. Paravisini, and V. Vig. 2017. Cultural Proximity and Loan Outcomes. American Economic Review 107 (2): 457–492.

    Article  Google Scholar 

  • Frame, W.S., and L.J. White. 2010. Technological Change, Financial Innovation, and Diffusion in Banking. In The Oxford Handbook of Banking, ed. A. Berger, P. Molyneux, and J. Wilson, 486–507. Oxford: Oxford University Press.

    Google Scholar 

  • Francis, B.B., I. Hasan, and X. Sun. 2014. Does Relationship Matter? The Choice of Financial Advisors. Journal of Economics and Business 73: 22–47.

    Article  Google Scholar 

  • Fungáčová, Z., I. Hasan, and L. Weill. 2016. Trust in Banks. Working Papers of LaRGE Research Center. http://EconPapers.repec.org/RePEc:lar:wpaper:2016-09.

  • Garmaise, M.J. 2015. Borrower Misreporting and Loan Performance. Journal of Finance 70: 449–484.

    Article  Google Scholar 

  • Gilje, E.P., E. Loutskina, and P.E. Strahan. 2016. Exporting Liquidity: Branch Banking and Financial Integration. Journal of Finance 71: 1159–1184.

    Article  Google Scholar 

  • Gorton, G., and A. Metrick. 2010. Regulating the Shadow Banking System. Brookings Papers on Economic Activity, 261–297.

  • Greenbaum, S.I., A.V. Thakor, and A.W.A. Boot. 2016. Contemporary Financial Intermediation, 3rd ed. Elsevier, Amsterdam: Academic Press.

    Google Scholar 

  • Grunert, J., and L. Norden. 2012. Bargaining Power and Information in SME Lending. Small Business Economics 39 (2): 401–417.

    Article  Google Scholar 

  • Hasan, I., K. Jackowicz, O. Kowalewski, and L. Kozłowski. 2015. Do Local Banking Market Structures Matter for SME Financing and Performance? New Evidence from an Emerging Economy. Working paper, December 1. Available at SSRN: https://ssrn.com/abstract=2727941.

  • Hasan, I., and M. Marinč. 2016. Should Competition Policy in Banking Be Amended during Crises? Lessons from the EU. European Journal of Law and Economics 42 (2): 295–324.

    Article  Google Scholar 

  • Hasan, I., E. Martikainen, and T. Takalo. 2014. Promoting Efficient Retail Payments in Europe (July 28, 2014). Journal of Payments Strategy & Systems, 8 (2014-2015); Bank of Finland Research Discussion Paper No. 20/2014.

  • Hasan, I., H. Schmiedel, and L. Song. 2012. Return to Retail Banking and Payments. Journal of Financial Services Research 41 (3): 163–195.

    Article  Google Scholar 

  • Hildebrand, T., M. Puri, and J. Rocholl. 2016. Adverse Incentives in Crowdfunding. Management Science. https://doi.org/10.1287/mnsc.2015.2339.

    Article  Google Scholar 

  • Ho, P.-H., C.-W. Huang, C.-Y. Lin, and J.-F. Yen. 2016. CEO Overconfidence and Financial Crisis: Evidence from Bank Lending and Leverage. Journal of Financial Economics 120 (1): 194–209.

    Article  Google Scholar 

  • Huang, R., and L. Ratnovski. 2011. The Dark Side of Bank Wholesale Funding. Journal of Financial Intermediation 20 (2): 248–263.

    Article  Google Scholar 

  • Ichev, R., and M. Marinč. 2018. Stock Prices and Geographic Proximity of Information: Evidence from the Ebola Outbreak. International Review of Financial Analysis 56: 153–166.

    Article  Google Scholar 

  • Iyer, R., A.I. Khwaja, E.F.P. Luttmer, and K. Shue. 2016. Screening Peers Softly: Inferring the Quality of Small Borrowers. Management Science 62 (6): 1554–1577.

    Article  Google Scholar 

  • Iyer, R., and M. Puri. 2012. Understanding Bank Runs: The Importance of Depositor-Bank Relationships and Networks. American Economic Review 102 (4): 1414–1445.

    Article  Google Scholar 

  • Jakšič, M., and M. Marinč. 2015. The Future of Banking: The Role of Information Technology. Bančni vestnik: revija za denarništvo in bančništvo 64 (11): 68–73.

    Google Scholar 

  • Khedmatgozar, H.R., and A. Shahnazi. 2017. Electronic Commerce Research. https://doi.org/10.1007/s10660-017-9253-z.

    Article  Google Scholar 

  • Kysucky, V., and L. Norden. 2016. The Benefits of Relationship Lending in a Cross-Country Context: A Meta-Analysis. Management Science 62 (1): 90–110.

    Google Scholar 

  • Li, S., and M. Marinč. 2018. Economies of Scale and Scope in Financial Market Infrastructures. Journal of International Financial Markets, Institutions and Money 53: 17–49.

    Article  Google Scholar 

  • Liberti, J.M. 2017. Initiative, Incentives, and Soft Information. Management Science. https://doi.org/10.1287/mnsc.2016.2690.

    Article  Google Scholar 

  • Liberti, J.M., and A.R. Mian. 2009. Estimating the Effect of Hierarchies on Information Use. Review of Financial Studies 22 (10): 4057–4090.

    Article  Google Scholar 

  • Liberti, J.M., and M. A. Petersen. 2017. Information: Hard and Soft. Working paper. March.

  • Liberti, J. M., A. Seru, and V. Vig. 2016. Information, Credit, and Organization. June, 2016. Available at SSRN: https://ssrn.com/abstract=2798608.

  • Liberti, J. M., J. Sturgess, and A. Sutherland. 2016. Information Sharing and Lender Specialization: Evidence from the U.S. Commercial Lending Market. November 2016.

  • Lin, M., N.R. Prabhala, and S. Viswanathan. 2013. Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-to-Peer Lending. Management Science 59 (1): 17–35.

    Article  Google Scholar 

  • Liu, D., D. Brass, Y. Lu, and D. Chen. 2015. Friendships in Online Peer-to-Peer Lending: Pipes. Prisms and Relational Herding. MIS Quarterly 39 (3): 729–742.

    Google Scholar 

  • Lucey, B.M., S.A. Vigne, L. Ballester, L. Barbopoulos, J. Brzeszczynski, O. Carchano, N. Dimic, V. Fernandez, F. Gogolin, A. González-Urteaga, J.W. Goodell, P. Helbing, R. Ichev, F. Kearney, E. Laing, C.J. Larkin, A. Lindblad, I. Lončarski, K. Cuong Ly, M. Marinč, R.J. McGee, F. McGroarty, C. Neville, M. O’Hagan-Luff, V. Piljak, A. Sevic, X. Sheng, D. Stafylas, A. Urquhart, R. Versteeg, A.N. Vu, S. Wolfe, L. Yarovaya, and A. Zaghini. 2018. Future Directions in International Financial Integration Research—A Crowdsourced Perspective. International Review of Financial Analysis 55: 35–49.

    Article  Google Scholar 

  • Ma, T., and F. McGroarty. 2017. Social Machines: How Recent Technological Advances Have Aided Financialisation. Journal of Information Technology 32 (3): 234–250.

    Article  Google Scholar 

  • Marinč, M. 2013. Banks and Information Technology: Marketability vs. Relationships. Electronic Commerce Research 13 (1): 71–101.

    Article  Google Scholar 

  • Martins, C., T. Oliveira, and A. Popovič. 2014. Understanding the Internet Banking Adoption: A Unified Theory of Acceptance and Use of Technology and Perceived Risk Application. International Journal of Information Management 34 (1): 1–13.

    Article  Google Scholar 

  • Martynova, N., L. Ratnovski, and R. Vlahu. 2018. Bank Profitability and Risk Taking. February 2018. https://www.dnb.nl/en/binaries/20180220_MRV_tcm47-335181.pdf.

  • Mian, A. 2006. Distance Constraints: The Limits of Foreign Lending in Poor Economies. Journal of Finance 61 (3): 1465–1505.

    Article  Google Scholar 

  • Miloš Sprčić, D., M. Mešin Žagar, Ž. Šević, and M. Marc. 2016. Does Enterprise Risk Management Influence Market Value—A Long-term Perspective. Risk Management 18 (2–3): 65–88.

    Google Scholar 

  • Mocetti, S., M. Pagnini, and E. Sette. 2017. Journal of Financial Services Research 51: 313–338.

    Article  Google Scholar 

  • Monteiro de Carvalho, M., and R. Rabechini Junior. 2015. Impact of Risk Management on Project Performance: the Importance of Soft Skills. International Journal of Production Research 53 (2): 321–340.

    Article  Google Scholar 

  • Moravčík, M., M. Schmid, N. Burch, V. Lisý, D. Morrill, N. Bard, T. Davis, K. Waugh, M. Johanson, and M. Bowlin. 2017. DeepStack: Expert-Level Artificial Intelligence in Heads-Up No-Limit Poker. Science 356: 508–513.

    Article  Google Scholar 

  • Norden, L., and M. Weber. 2010. Credit Line Usage, Checking Account Activity, and Default Risk of Bank Borrowers. Review of Financial Studies 23 (10): 3665–3699.

    Article  Google Scholar 

  • Ogura, Y. 2010. Interbank Competition and Information Production: Evidence from the Interest Rate Difference. Journal of Financial Intermediation 19 (2): 279–304.

    Article  Google Scholar 

  • Onay, C., and E. Ozsoz. 2013. The Impact of Internet-Banking on Brick and Mortar Branches: The Case of Turkey. Journal of Financial Services Research 44 (2): 187–204.

    Article  Google Scholar 

  • Pauget, G. 2016. Systemic Risk in Payments. Financial Stability Review 20: 37–44.

    Google Scholar 

  • Paravisini, D., V. Rappoport, and P. Schnabl. 2015. Specialization in Bank Lending: Evidence from Exporting Firms. NBER Working Papers 21800, National Bureau of Economic Research.

  • Paravisini, D., and A. Schoar. 2015. The Incentive Effect of Scores: Randomized Evidence from Credit Committees. Revised July 2015. NBER Working Paper No. w19303.

  • Parkes, D.C., and M.P. Wellman. 2015. Economic Reasoning and Artificial Intelligence. Science 349 (6245): 267–272.

    Article  Google Scholar 

  • Petersen, M.A., and R.G. Rajan. 1995. The Effect of Credit Market Competition on Lending Relationships. Quarterly Journal of Economics 110 (2): 407–443.

    Article  Google Scholar 

  • Petersen, M.A., and R.G. Rajan. 2002. Does Distance Still Matter? The Information Revolution in Small Business Lending. Journal of Finance 57 (6): 2533–2570.

    Article  Google Scholar 

  • Philippon, T. 2016. The FinTech Opportunity. NBER Working Paper No. 22476, August.

  • Presbitero, A.F., and A. Zazzaro. 2011. Competition and Relationship Lending: Friends or Foes? Journal of Financial Intermediation 20 (3): 387–413.

    Article  Google Scholar 

  • Puri, M., and J. Rocholl. 2008. On the Importance of Retail Banking Relationships. Journal of Financial Economics 89 (2): 253–267.

    Article  Google Scholar 

  • Puri, M., J. Rocholl, and S. Steffen. 2017. What Do a Million Observations Have to Say about Loan Defaults? Opening the Black Box of Relationships. January 30. https://ssrn.com/bstract=1572673.

  • Qian, J., P.E. Strahan, and Z. Yang. 2015. The Impact of Incentives and Communication Costs on Information Production and Use: Evidence from Bank Lending. Journal of Finance 70: 1457–1493.

    Article  Google Scholar 

  • Rainie, L., and J. Anderson. 2017. Code-Dependent: Pros and Cons of the Algorithm Age. PewResearchCenter, February 8, 2017. http://www.pewinternet.org/2017/02/08/code-dependent-pros-and-cons-of-the-algorithm-age/.

  • Rajan, R.G. 1992. Insiders and Outsiders: The Choice between Informed Investors and Arm’s Length Debt. Journal of Finance 47: 1367–1400.

    Article  Google Scholar 

  • Rajan, U., A. Seru, and V. Vig. 2015. The Failure of Models that Predict Failure: Distance, Incentives, and Defaults. Journal of Financial Economics 115 (2): 237–260.

    Article  Google Scholar 

  • Ravina, E. 2012. Love & Loans: The Effect of Beauty and Personal Characteristics in Credit Markets. November 22. http://dx.doi.org/10.2139/ssrn.1107307.

  • Rice, T., and P.E. Strahan. 2010. Does Credit Competition Affect Small-Firm Finance? Journal of Finance 65: 861–889.

    Article  Google Scholar 

  • Rysman, M., and S. Schuh. 2016. New Innovations in Payments. NBER Working Paper 22358.

  • Schmiedel, H., M. Malkamäki, and J. Tarkka. 2006. Economies of Scale and Technological Development in Securities Depository and Settlement Systems. Journal of Banking & Finance 30 (6): 1783–1806.

    Article  Google Scholar 

  • Sharpe, S.A. 1990. Asymmetric Information, Bank Lending and Implicit Contracts: A Stylized Model of Customer Relationships. Journal of Finance 45: 1069–1087.

    Google Scholar 

  • Silver, D., J. Schrittwieser, K. Simonyan, I. Antonoglou, A. Huang, A. Guez, T. Hubert, L. Baker, M. Lai, A. Bolton, Y. Chen, T. Lillicrap, F. Hui, L. Sifre, G. van den Driessche, T. Graepel, and D. Hassabis. 2017. Mastering the Game of Go Without Human Knowledge. Nature 550: 354–359.

    Article  Google Scholar 

  • Song, F.A., and V. Thakor. 2007. Relationship Banking, Fragility, and the Asset–Liability Matching Problem. Review of Financial Studies 20 (6): 2129–2177.

    Article  Google Scholar 

  • Stein, J.C. 2002. Information Production and Capital Allocation: Decentralized versus Hierarchical Firms. Journal of Finance 57: 1891–1921.

    Article  Google Scholar 

  • Uchida, H., G.F. Udell, and N. Yamori. 2012. Loan Officers and Relationship Lending to SMEs. Journal of Financial Intermediation 21 (1): 97–122.

    Article  Google Scholar 

  • Xue, M., L.M. Hitt, and P. Chen. 2011. Determinants and Outcomes of Internet Banking Adoption. Management Science 57 (2): 291–307.

    Article  Google Scholar 

  • Zwikael, O., and S. Globerson. 2006. From Critical Success Factors to Critical Success Processes. International Journal of Production Research 44: 3433–3449.

    Article  Google Scholar 

Download references

Acknowledgements

The authors would like to thank to the anonymous referee, the editor Igor Lončarski, Arnoud Boot, Iftekhar Hasan, Robin Lumsdaine, Vasja Rant, Lev Ratnovski, and Razvan Vlahu for their valuable comments and suggestions.

Author information

Authors and Affiliations

  1. Faculty of Economics, University of Ljubljana, Kardeljeva pl. 17, Ljubljana, Slovenia

    Marko Jakšič & Matej Marinč

Authors
  1. Marko Jakšič
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Matej Marinč
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Matej Marinč.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Jakšič, M., Marinč, M. Relationship banking and information technology: the role of artificial intelligence and FinTech. Risk Manag 21, 1–18 (2019). https://doi.org/10.1057/s41283-018-0039-y

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/s41283-018-0039-y

Keywords

JEL Classification

Search

Navigation