The impact of FinTech on bank performance: A systematic literature review

In recent years, green credit has significantly supported the development of the sustainable economy. However, the existing literature presents differing views on the impact of green credit on bank performance, which is crucial for the sustainability of green credit business. Meanwhile, FinTech is comprehensively empowering green credit business. This paper investigates whether FinTech influences the effect of green credit on bank performance. Based on an analysis of data from 127 Chinese commercial banks from 2007 to 2022, we find that green credit significantly enhances bank performance, and FinTech further amplifies this positive effect. This finding partially explains the conflicting views in the existing literature, as the impact of green credit on bank performance varies under different levels of FinTech. We believe that FinTech exerts its influence through three mechanisms: cost reduction, reputation enhancement, and risk mitigation. Heterogeneity analysis reveals that the impact of FinTech is more pronounced in city commercial banks, in samples with better green credit development, and during banking industry downturns. Finally, we recommend that banks actively develop FinTech and apply it to green credit businesses to maximize the positive effects of green credit. Simultaneously, regulators and governments should provide necessary support for banks.

This paper examines the impact of agent banking activities, a recent FinTech development, on the financial performance of commercial banks in Bangladesh, as agent banking has been receiving significant global attention due to its technology driven approach, cost-effective and easy accessibility and broader coverage to the unbanked population. Employing a panel data regression framework, the study estimates a random effect model using the bank-level quarterly data from nine commercial banks in Bangladesh that have been operating full-scale agent banking services including deposit mobilization and credit disbursement over the period from 2018Q1 to 2024Q4. The empirical findings indicate that credit disbursement by agent banks has a positive and statistically significant impact on bank profitability measures, return on asset (ROA) and return on equity (ROE). Similarly, the number of agent banking outlets has a significant positive impact on ROA. Therefore, an appropriate agent banking policy aimed at increasing agent banking outlets using digital platforms based on FinTech is vital for ensuring positive growth in credit disbursement in order to improve the financial performance of the banking sector in a developing country like Bangladesh.

Impact of Fintech on Performance of Banks: Empirical Evidence From Jordan

In recent decades, financial technology and stability have been debated and studied for decades. This study examines the relationship between financial technology (Fintech) and global bank financial stability. The study collected articles from research databases for this (Science Direct, Welly, Emerald, Springer Link, Google Scholar, and Research Gate). We map the financial technology–financial stability research domain and identify key developments and patterns from 1995 to 2022 using peer-reviewed articles. Financial technology's theoretical relationship to financial stability is also examined. Fintech, financial stability, and determinants are examined. This paper builds a comprehensive model of the relationship between Fintech and banking sector financial stability. Banking sectors use financial technology and financial stability practices to achieve financial stability goals and gain competitive advantages. Financial technology has increased the global banking sector financial stability.

The rapid growth of financial technology (FinTech) has disrupted traditional financial services and is transforming the financial landscape globally. This systematic literature review aims to synthesize the existing research on the impact of fintech on various aspects of the financial sector, such as financial inclusion, access to finance, financial stability, and consumer protection. A comprehensive search of relevant databases was conducted to identify relevant studies published between 2000 to 2022. A total of 450 studies were included in the final analysis, which was conducted using PRISMA. The results showed that fintech has the potential to enhance financial inclusion and access to finance, particularly for underserved populations. However, it also raises concerns regarding financial stability and consumer protection. The review highlights the need for further research to better understand the long-term impacts of fintech on the financial sector, as well as the role of regulators in ensuring that fintech develops in a way that benefits consumers and the economy as a whole.

The Fintech company has raised its number significantly in Indonesia and threatened the banking sector as Islamic Banking is not the exception. Fintech can provide better financial services than Islamic Bank with its technological advantages. This research aims to observe the effect of Fintech's on Islamic banks and discover the collaboration model between Fintech and Islamic banks to improve financial services. The method was carried out by Systematic Literature Review (SLR), then analyzed using Nvivo 12 to quantify the words counted to the papers found. The result showed that there were 14 papers found to analyze in the systematic review. According to Nvivo 12 words counted result, the highest words counted was ‘services’ with 21%, followed by ‘user’ and ‘customers’ combined with 16%. Furthermore, Fintech acts as the disruptor for Islamic Banking, shown in its Return on Asset and its potential to take over the millennial customers segment. The collaboration can be done by sharing product marketing, loans, and transaction services. For the customer, big data analysis, the legal aspects, risk of human error, and data security protocol should be mitigated by tightening the registration system to minimize fraud, enhancing the internet server to prevent failure transactions, and closely cooperating with the Authority of Financial Service in Indonesia (OJK) to ensure the legal aspects are fulfilled.

The impact of fintech on the performance of traditional banking remains contentious, with its underlying economic mechanisms still an urgent research priority. Utilizing panel data from 2010 to 2022, this study investigates the dynamic relationship between fintech development and traditional banking performance. The results demonstrate that emerging digital financial sectors, as early adopters of fintech, generate positive externalities on traditional banking performance through business model innovation. Conversely, traditional banks’ internal fintech adoption exhibits a U -shaped relationship with their performance. These findings comprehensively reveal the dynamic interplay between fintech and commercial banking evolution, offering critical insights for informing development strategies for digital finance.

Research on the Impact of Fintech on the Performance of Commercial Banks

This paper examines the impact of agent banking activities, a recent FinTech development, influencing the profitability and financial outcomes of commercial banks operating in Bangladesh, as agent banking has been receiving significant global attention due to its technology-driven approach, cost-effectiveness and easy accessibility, and broader coverage of the unbanked population. Through the application of penal data regression methods, the study estimates a random-effect model using panel data comprising quarterly observations from nine Bangladeshi commercial banks that maintained uninterrupted agent banking activities, covering both deposit mobilization and lending during the period from 2018Q1 to 2024Q4. The empirical findings indicate that credit disbursement by agent banks has a positive and statistically significant impact on bank profitability measures, return on assets (ROA), and return on equity (ROE). Similarly, the expansion of agent banking outlets positively and significantly influences ROA. Therefore, an appropriate agent banking policy aimed at increasing agent banking outlets using digital platforms based on FinTech is vital for ensuring positive growth in credit disbursement to achieve improved financial outcomes for the banking sector in a developing country like Bangladesh.

PurposeThe purpose of this study is to review the literature related to the influence of revenue diversification on banking sector performance. Further, the determination of the scope and the empirical estimation of the revenue diversification is also the area of investigation to synthesis with future research area.Design/methodology/approachThe systemic literature review process used by Opoku et al. (2015) is applied. In total, 68 Journal articles are studied after applying specified review protocols. The information gathered from the selected articles is presented and summarized in specified tables and charts formats for easy understanding.FindingsThe comprehensive literature review showed that much of the work in this area is done in the USA and the Asian region. To explore the impact of revenue diversification on banking performance in developing countries is a literature gap. While going through the existing literature, it is clear that researchers have not reached at any conclusion about the exact impact of revenue diversification on banking performance. It is also found that non-interest income ratio and Herfindahl-Hirschman index (HHI) (revenue) index are the most common proxies of revenue diversification. However, other studies also input the HHI (loans) index, number of ATM’s and number of branches as a proxy for diversification.Research limitationsThis systematic literature review is based on specific review protocols, and therefore, it might be possible that some of the important work is not included in it due to time restrictions.Originality/valueThe banking sector has shown tremendous growth in revenue sources in past two decades. Keeping in view the importance of the banking sector within an economy, the dramatic shift of revenue sources and their impact is important to determine that eventually will help to define the future research area. In past research studies, there exists clear disagreement about the possible impact of revenue diversification on banking performance. This systemic literature review is an attempt to draw conclusions about the exact impact of revenue diversification. Therefore, the outcome of the study will be very valuable for both banking practitioners and academicians.

This paper conceptually analysed the special issue briefly reviews about absorptive capacity. Based on a systematic literature review, the paper discusses the Impact of Absorptive Capacity on Banking Performance in Indonesia. The paper also explains the mediating effect of marketing mix and innovation on the performance of banks in Indonesia which shows that the mediation of marketing mix and innovation has a positive effect on the impact of absorptive capacity on bank performance. The paper offers a definition of absorptive capacity for strategic management discipline, constructs a conceptual framework of absorptive capacity for banking sector, and clarifies the main implication of absorptive capacity theory for the development of marketing and management, thereby providing sources for future research.

The banking sector plays a crucial role in driving economic growth and maintaining financial stability by directing funds to productive sectors while managing risks that affect profitability and resilience. This study uses a Systematic Literature Review (SLR) guided by PRISMA principles to explore how risk management practices, especially Non-Performing Loan (NPL) management, influence bank performance. Lending, as the core banking activity, is key to profitability and financial intermediation, yet high NPL levels can undermine income and stability, particularly in developing countries like Indonesia. By reviewing 16 recent empirical studies, the findings show that effective risk management including strong credit governance, adherence to Basel III standards, technology-supported lending systems, and an empowered Chief Risk Officer helps reduce NPLs and improve financial performance as reflected in ROA, ROE, NIM, and other risk-adjusted indicators. Furthermore, a comprehensive approach that combines regulatory compliance, risk diversification, and sustainability strengthens long-term resilience. These insights provide practical guidance for regulators, bank managers, and researchers in designing flexible, transparent, and sustainable risk management strategies. The study emphasizes that managing NPLs is not just a technical or operational task but a central strategy for ensuring banks remain profitable, stable, and resilient over the long term.

This paper intends to review research on the performance of banks to identify gaps in the current body of knowledge to justify future research directions. We use a systematic literature review method and review 164 articles from refereed journals. Content analysis reveals that most of the studies are empirical focusing on two aspects i.e. financial performance and efficiency of banks. These studies consider the impact of particular events and contexts on performance and efficiency while testing research hypotheses. However, often there is a lack of a theoretical backing for these studies. We argue that the considered events and contexts affect the risk transformation process under the financial intermediation theory. The efficiency of banks reflects the risk transformation process and causes performance. On the other hand, traditional performance indicators were based on financial measures that do not reflect the components of the risk transformation process. A sound comprehensive risk-based composite measure is required to fill this gap

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