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How IT-Based Co-creation Can Provide Small Banks Access to the Financial Market – A Prototype Development from a Design Science Research Perspective

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Service-Oriented Perspectives in Design Science Research (DESRIST 2011)

Part of the book series: Lecture Notes in Computer Science ((LNISA,volume 6629))

Abstract

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

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Author information

Authors and Affiliations

  1. E-Finance Lab, Goethe University, Grüneburgplatz 1, 60323, Frankfurt, Germany

    Sven Weber & Roman Beck

Authors
  1. Sven Weber
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  2. Roman Beck
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Editor information

Editors and Affiliations

  1. Sheldon B. Lubar School of Business, University of Wisconsin-Milwaukee, 3202 N. Maryland Avenue, 53201-0742, Milwaukee, WI, USA

    Hemant Jain  & Atish P. Sinha  & 

  2. Whitman School of Management, Syracuse University, 721 University Avenue, 13244-2450, Syracuse, NY, USA

    Padmal Vitharana

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© 2011 Springer-Verlag Berlin Heidelberg

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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. In: Jain, H., Sinha, A.P., Vitharana, P. (eds) Service-Oriented Perspectives in Design Science Research. DESRIST 2011. Lecture Notes in Computer Science, vol 6629. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-20633-7_23

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  • DOI: https://doi.org/10.1007/978-3-642-20633-7_23

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-20632-0

  • Online ISBN: 978-3-642-20633-7

  • eBook Packages: Computer ScienceComputer Science (R0)

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