A Business Model to enable Cooperation between Financial Institutions and Crowdfunding Platforms

Abstract

This research paper develops an integrated business model, a merger of current business model of crowdlending platforms and a financial industry, by analysing environment, value proposition of the current business models, a strength and weakness analysis, and two basic business models which were derived from research data during the study. Digitalization enables financial institutions to make a shift towards modern crowdfunding services. New companies have established entirely new business models in crowdfunding services, which are today serving mostly niche markets. Financial institutions could cooperate to create together new market share from the market potential in the financial field while sharing knowledge, expertise in money lending, competencies in regulations, and the customer base. In this master thesis, the focus is on how a platform could work together in the crowdlending business. This integrated business model focuses on the crucial part of the model, the value propositions of both businesses and merges those value propositions to an integrated variant and combines the strengths of the current business model to overcome weaknesses of the current business approaches....