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What’s Your Bank’s FinTech Score? Technology Integrating Banking into the Broker Intermediation Model

Linda J. S. Allen et al.

Journal of Financial Services Research2025https://doi.org/10.1007/s10693-025-00454-0article
AJG 3ABDC A
Weight
0.50

Abstract

We define FinTech as banks’ integration of technology into the broker intermediation model. Unlike traditional dealer banks relying on leveraged balance sheets for intermediation, FinTech banks adopt a technology-driven broker model. Using nonlinear and machine learning algorithms, we develop an empirical “FinTech score” that shows on-balance sheet lending for low-FinTech-score banks versus securitization, brokered deposits, and non-interest income for high-score banks. Using two complementary measures of operational efficiency, we find that this technology-driven shift in business models (either holistically or via mergers) helps explain reductions in the cost of financial intermediation. Our bank-specific, time-varying FinTech score provides insights into the distribution of FinTech integration into U.S. banking.

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https://doi.org/https://doi.org/10.1007/s10693-025-00454-0

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@article{linda2025,
  title        = {{What’s Your Bank’s FinTech Score? Technology Integrating Banking into the Broker Intermediation Model}},
  author       = {Linda J. S. Allen et al.},
  journal      = {Journal of Financial Services Research},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1007/s10693-025-00454-0},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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