In times of digitalization, established firms operating in the financial services sector increasingly form alliances with start-up companies to satisfy the customers´ demand for rapid innovation and cope with the growing dynamics of markets. Technology-enabled innovation challenges traditional...

This paper presents an analytical framework that describes the business model of banks. It draws on the classical theory of banking and the literature on digital transformation. It provides an explanation for existing trends and, by extending the theory of the banking firm, it illustrates how...