Weber & Beck (2011) How IT-based co-creation can provide small banks access to the financial market

Citation Weber, S., Beck, R. (2011). How IT-based co-creation can provide small banks access to the financial market - A prototype development from a design science research perspective. Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), 6629 LNCS, 321–334. URL

BibTex entry for this article:

BibTex entry for this article:

@article{weber2011it-based,
author = {Weber, Sven and Beck, Roman},
doi = {10.1007/978-3-642-20633-7_23},
isbn = {9783642206320},
issn = {03029743},
journal = {Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)},
pages = {321--334},
title = {{How IT-based co-creation can provide small banks access to the financial market - A prototype development from a design science research perspective}},
volume = {6629 LNCS},
year = {2011}
}

Abstract

The asset-backed securities (ABS) market shrank due to the financial\ncrises in 2007/2008. The financial collapse was caused by both the\nconsumer and the commercial ABS markets failure. However, the ABS market\nis an important source of funding for market participants in the\nfinancial services industry. Hence, we see a returning trend for ABS\nmarkets and present in this paper the development of a prototype from a\ndesign science research (DSR) perspective to enable smaller banks to\nsecuritize and sell their assets. Given the relatively low mortgage and\ncredit volumes within smaller banks they are currently not able to\npackage and sell their securities. The prototype developed in this paper\noffers a solution by pooling all mortgages gathered from hundreds of\nsmaller banks, calculating the attached risk, and finally, selling them\nto investors. In this context, DSR enabled us to build such a\ncooperative strategy in form of a prototype.

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