Open innovation and collaboration in the financial services sector: exploring the role of trust

Abstract

There is a vast discussion about open innovation, the need of collaboration and knowledge sharing, co-creation and user-centred innovation among scholars, as well as practitioners, in several spheres of economic activity including financial services, which nowadays represent considerable share of the global economy. In the European Union (EU-27) financial services account for 5.9% of the Gross Value Added in 2010 (Eurostat, 2011). However, in the process of building up an open innovation organization, trust does not yet seem to have a place in this process. The approaches of current literature are failing to denote the relation between the actual importance and the impact of trust within this open and collaborative environment under an organizational perspective. The objective of this paper is to identify the relevant factors that influence and are influenced by the role of trust within the financial services organizations ex-post financial crisis.

The Age of FinTech: Implications for Research, Policy and Practice

“…FinTech start-ups¯nd it very hard to reach customers who are used to traditional FS (Claessens et al, 2018). Above all, FinTech start-ups need to battle with misconceptions and concerns with regards to security and reliability of data inertia over innovation À À À a challenge that requires building relational and behavioral trust (Salampasis et al, 2014). FinTech has brought to light foundational questions with regards to regulatory interventions calling for a new dialogue on the \if, when, what and how" aspects of regulation and compliance in the context of responsible (ethical) innovation (Magnuson, 2018).…”

“…FinTech venture challenges discussed above include those arising from multiple and cross-country regulatory authorities/jurisdictions. Under open and collaborative environment, trust plays a central role in e®orts toward harmonizing compliance frameworks for human-centric¯nancial innovations (Salampasis et al, 2014). Friction between incumbents and early-stage startups needs development of relational and behavioral trust, bifurcating misconceptions and concerns for cyber security and reliability of data inertia over innovation (Stewart and Jürjens, 2018).…”

“…Sustainable development of the FinTech thus calls for a focus on responsible innovations considering the tenets of embedded trust À À À demographic diversity, knowledge sharing attitude, ambidextrous thinking, collaborative culture, customer adoption of FinTech innovations and e±cient use of resources (e.g., lower acquisition and operational costs) (Salampasis et al, 2014;Haddad and Hornuf, 2016). Du et al (2018) through a study on blockchain identify supportive culture as an important element of FinTech actualization.…”

Can we have a general theory of financial innovation processes? A conceptual review

“…Therefore, there is a need for some form of assurance. Additionally, Salampasis et al (2014) suggest that the need for trust worthiness among stakeholders in the financial innovation process is even more crucial to foster open innovation and improve performance of the operational, collaboration, branding, and marketing aspects of the financial innovation process. On the other hand, financial innovations can induce certain behaviors in their adopters with positive or negative consequences.…”

Whiskey Tango Foxtrot: Technological Convergence?

“…But of course adoption of open and collaborative innovation processes require a shift in organisational mindset. Trust emerges as the core element of open innovation which at an inter-organisational level is about the trustworthiness of the crowd in general and close partners with whom the focal firm collaborates for innovation (Salampasis, Mention & Torkkeli, 2014). If embedded in the innovation process, trust can foster openness and knowledge exchange to deliver results faster, with less costs and lower resource requirements for the focal firm.…”