Abstract
While studies have examined big data analytics and firm performance nexus with information technology, manufacturing and hospitality companies, the literature is limited in the banking industry. Notably, most banks are still in the early stages of big data application, calling for dire need for both theoretical support and practical implications on how to use big data and financial innovation to improve financial performance. Grounding this research study on the dynamic capability view and resource-based view, this thesis examines the impacts of big data and financial innovation on financial performance of banks in the United Kingdom utilizing mixed methods.The quantitative method adopts questionnaires based on a sample of 150 bank managers to empirically tests the relationships between big data, financial innovation and financial performance using regression with mediation models. Results indicate positive effect of both big data and financial innovation on financial performance, suggesting that big data application and financial innovation could essentially build banks dynamic capability in financing, and lead to achieve superior financial performance. Further examination reports that big data positively facilitate the achievement of financial performance through financial innovation. Additional cross-country analysis shows that, in the long run, big data application and financial innovation investments will support to achieving financial performance. Finally, research main findings were validated to several robustness checks.
Meanwhile, the qualitative approach was adopted to investigate how customer data adoption drives banks financial innovations and performance gains by conducting semi-structured interview with thirteen bank managers and analysed using the grounded theory analysis. Result shows that, technological, organisational, and environmental factors result managerial adoption of customer data. Further, managers showed that, customer data drives financial innovation developments and enhance bank performance to achieve competitive advantage.
This thesis provides a valuable model showing how big data and financial innovation enhance financial performance considering the unique banking institutions of the United Kingdom. Additionally, the research presents empirical evidence on the role of customer data driven financial innovations and performance gains, to which the extant literature has not explored. Therefore, this thesis contributes to the extant knowledge of customer data by investigating its roles on financial innovation and performance in the banking sector. Finally, the thesis provides significant insights to managers and policymakers on future development of adopting customer data in banking assigning direction to achieve sustainable performance. The thesis deepens the understanding of big data applications and provide valuable insights for promoting financial innovation in developed markets.
| Date of Award | 2024 |
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| Original language | English |
| Awarding Institution |
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| Supervisor | Yongsheng Guo (Supervisor), Xiaoxian Zhu (Supervisor) & Chi Keung Lau (Supervisor) |