Open Access

Maximilian Brünjes

• The German financial market is being disrupted by financial technology and the progression of AI. This thesis will look at Sparkasse Deutschland as an industry leading firm in the German financial market and analyse the effect of there currently relevant disruptive technologies employed by FinTech companies on their business model. Following a qualitative, exploratory research approach, utilizing comparative analysis, literature review and exploratory interviews, disruptive effects and managerial implications are outlined. Research showed that Sparkasse Deutschland is currently confronted with different, digitally operating, disruptive FinTech business models attacking different parts of the three main areas of Sparkasse’s value proposition. Besides through cheaper and technologically superior product solutions FinTechs employ the characteristics speed, specialized solutions and platforms, transparency, flexibility and connectivity, user experience, simplicity, interactive and intelligent systems and reliability and security to disrupt the Sparkasse business model. While currently hedged by their wholistic business model and experience in navigating the German regulatory financial system, Sparkasse is challenged with developing along the by FinTech introduced characteristics to stay competitive in the digital banking industry. Challenged by the transformation to a more digital business model, Sparkasse is tasked with simultaneously retaining existing customers and investing into their digital future. Further research could be conducted regarding a strategical implementation for Sparkasse Deutschland navigating the outlined challenges and planning action towards increasing competitive strength pertaining the digitally product environment.