Make Banking Simple Again : A multiple case-study about the internationalization of the largest online retail banks in Europe

Abstract: Digitalization is increasing in our society and continues to move in that direction. The shift from traditional banks to online banks is becoming more popular, and with an online bank, the international markets open. Although previous research about internationalization exists, there is no in-depth research on the specific topic of online banks. This study aims to provide information regarding how online banks internationalize, to understand the underlying factors for the process better as well as provide recommendations for both online banks but also traditional banks. Factors such as motivators, the entrepreneur, and resources are investigated to find an answer to the given research question. The way of internationalization is connected to the already pre-existing strategies of global or regional markets. The third theoretical concept that is applied to understand the internationalization process is which path of internationalization is used, either Born Global or Born Regional. This thesis is a qualitative study with a deductive approach. The empirical findings are derived from case studies through semi-structured interviews, and the sampling selection is online retail banks operating in Europe, with more than one million customers. The selected cases are Revolut, N26, Monzo, and Monese, where one interview per bank is conducted. The interviewee’s understanding of the subject is gathered in the empirical findings, through summarizing the transcription of the actual interviews. The researchers are analyzing the internationalization process and present both similarities and differences between the cases and connect it to the prevalent theories. In conclusion, some statements are drawn that highlight the importance of traditional banks to follow the new shift towards more simplified banking with understandable products that aim to help the people. This study, therefore, contributes not only to the theoretical understanding of the subject, but it also offers practical implications both for traditional and online retail banks