The emergence of the most recent FinTech phase resulted in multidimensional challenges, putting pressure on the traditional modus operandi within the financial services industry. Whilst incumbents initially responded to this FinTech phase by waiting out or attacking the new market entrants, the environment more recently shifted toward a more collaborative approach built on open innovation. The transition is further encouraged through regulatory initiatives (e.g. open banking), paving way for the development of FinTech-enabled ecosystems. Based on a review of publicly available information, this research is founded on academic and industry literature and aims at illuminating how banking organizations utilize open innovation as a vehicle for strategic intervention in order to respond to the changing market environment. Several cases that correspond to the attributes and characteristics of the three main types of open innovation (inside out, outside in, and coupled open innovation) are investigated, and common determinants contributing to the success of those initiatives derived in order to provide an outlook on future developments within the industry.
