Disruption of Financial Services in Germany

The crowdfunding industry in Germany is doing what many European banks are afraid to do — creating value by combining technology and banking. The authors explore the rise of Germany’s crowdfunding industry and how it has affected the way people obtain financial services.

Value creation and profitability at European Banks has languished behind their American counterparties ever since the industry was shaken up following the Global Financial Crises. Contrary to the advice from Winston Churchill, “Never let a good crisis go to waste”, senior management of large continental money banks have done exactly that. They appear to have missed the opportunity to adapt and reinvigorate their business models according to technological changes after the crisis. In an upcoming study by Professor David Young and Dr Boris Liedtke, both from INSEAD, the two argue that the new direction, which European Banks took between 2006 and 2016 was not focused on value creation but instead