Potential benefits of digital business models and its processes in the financial and insurance industry

Abstract

For several years, companies in the financial and insurance sector have been facing increasing competition due to the increased use of digital technologies. The question that arises is what potential benefits experts from the financial and insurance industry see in digital business models and their processes. Although theory and practice show increased interest in the potentials of new business models through digitization, prior research has not demonstrated yet the main driver of how to use the potentials of digital business models and its processes (PDBMP) in the finance and insurance sectors. The authors implemented an empirical study based on a theoretical foundation and found four main drivers regarding the PDBMP in the financial and insurance sector: Key Performance Indicators, Individualization, Efficiency, and Communication. The results of the structural equation model (SEM) approach show that two of the four determinants do have a positive and significant influence on the PDBMP.