Abstract
The banking sector is vital for the economy of every country as it plays the role of managing the country’s financial assets. Financial Technology (FinTech) become an important issue in corporate world debate today. FinTech is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. This study examines the nexus of financial technology (technology spending ratios and research and development intensity towards financial performance of commercial bank in Malaysia, Singapore & Thailand. This study used a regression analysis in order to examine the impact of observed variables. The findings shows that there is an impact of technology spending ratios and R& D intensity towards bank performance. However, the outcome varies for each sample data as a different country has its own banking regulations and policies. Consequently, the findings of this study could be used an indicator for the banks to evaluate their investment allocation in technology advancement.
Highlights
The banking sector is vital for the economy of every country as it plays the role of managing the country’s financial assets
The model is in a good fit and can be acceptable because all the four sample groups are significant with the pool sample at 10% level, Malaysia and Thailand at 5% level and Singapore at 1% level
This study is carried out to examine the impact of financial technology investment towards the bank’s performance in Malaysia, Thailand and Singapore by evaluating 3 banks from each country from the year 2008 to 2017
Summary
The banking sector is vital for the economy of every country as it plays the role of managing the country’s financial assets. Traditional banking is characterised by physical decentralisation, with branches scattered around populated areas providing a ubiquitous presence (Jayawardhena & Foley, 2000). Traditional banking alone is not sufficient to strive through the technology-centred world today. According to Feng and Wu (2018) firms must actively invest in new technology to provide higher quality products, deliver better customer services, boost revenue and cut costs in order to stay competitive in the market. IT can be categorized generally to software applications and computer hardware. Beccalli (2007) refers to IT investments as the total estimated revenues paid to vendors for IT, hardware, software and IT services. A potential competitive advantage from IT may be diminished if peer firms make similar investments in IT (Mata et al, 1995)
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