Breaking bank monopolies with bank hubs
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Digitalization has been important for banks to increase operational effectiveness and reduce costs, but there has been little focus on digitalization to increase innovation and customer value. Banks have faced little competition, as they have operated in a near monopoly, thanks to regulation, capital requirements and loyal bank customers. This study investigates how a new financial service called a bank hub can challenge bank customers' loyalty to their banks. We develop a conceptual model based on an extension of the technology acceptance model, to study key drivers for adoption of bank hubs. The results are based on focus groups interviews and reveal that ease of use and usefulness were the main drivers for users' intent to use a bank hub, while the biggest barrier was lack of trust. We found that participants in the age group 18-30, were the most positive to substitute the interface of their banks with a bank hub to manage their finances. The data indicate that adoption of bank hubs can lower switching costs, and enable users to spread their products across more financial service providers. To illustrate possible implications for Skandiabanken we perform a SWOT analysis, and guide the bank into what positions are possible to take in this future ecosystem.