Impact Of Financial Technology Research Articles

The Impact of Financial Technology on Bank Financial Performance

This research was conducted to determine whether there is a significant influence on financial performance before and after the operation of Financial Technology (Fintech) in Jambi. The variables used in this study employed financial ratios, namely Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Return Of Assets (ROA), Operational Efficiency Ratio (BOPO), and Non-Performing Loan (NPL) in banks registered with the Financial Services Authority (OJK) for the period 2015-2018. The testing methods utilized in this research include the Paired Sample T-test for normally distributed data and the Wilcoxon Sign Rank Test for non-normally distributed data. The findings of this study indicate a significant influence on the financial ratios of CAR and BOPO. Meanwhile, for the variables ROA, LDR, and NPL, there is no significant influence on the financial performance of banking companies before and after the emergence of Financial Technology (Fintech) in Jambi.

Risk Management in Islamic Banking: The Impact of Financial Technologies through Empirical Insights from the UAE

Financial technology (fintech) innovations are transforming banking globally. Their adoption poses new opportunities and risks for Islamic banks with unique requirements. This study examines fintech’s implications for risk management effectiveness in United Arab Emirates Islamic banks. A conceptual model incorporates factors like fintech adoption, emerging capabilities, digital maturity, and IT security influencing outcomes. Primary data were collected via survey from nine UAE Islamic banks and analyzed using PLS-SEM. Results show that fintech adoption and capabilities positively impacted effectiveness, while digital transformation alone did not. The findings also show that the regulatory environment did not moderate relationships as hypothesized. The findings provide empirical evidence on optimizing risk management through responsible fintech enablement and oversight alignment in the UAE context.

Exploring the impact of digital inclusive finance on consumption volatility: Insights from household entrepreneurship and income volatility

The application of digital technology has reshaped all aspects of social life, and the impact of financial technology on the economy is unprecedented. Consumption is an eternal issue in economic development; however, most existing studies have concentrated on how digital inclusive Finance affects household consumption levels, giving little attention to consumption volatility. Nonetheless, policies that overlook consumption volatility are less likely to achieve societal welfare goals, particularly in developing countries. This study aims to fill this gap and unveil the “black box” of the impact of digital inclusive Finance on consumption volatility, which can benefit the development of economic resilience. Utilizing data from the China Household Finance Survey, our research assesses the impact of digital inclusive Finance on household consumption volatility and discovers that digital inclusive Finance significantly smooths out these fluctuations. Mechanism tests further indicate that the main transmission channels for this impact are promoting entrepreneurship and reducing income volatility. Moreover, heterogeneity tests show that the effect of digital inclusive Finance in smoothing household consumption volatility is more pronounced in households with sound financial standing, higher financial literacy, and internet access, especially in rural areas. These findings enrich the literature on digital inclusive Finance's role in managing volatility and extend the theory on the inclusive nature of digital inclusive Finance, offering valuable practical implications for developing countries.

Impact Of Financial Technology’s Growth to Bank’s Performance and Efficiency at Pre Pandemic Covid-19

COVID-19 outbreaks are known as catalysts of digitalization in all industries, including the financial industry, because of the emergence of financial technology. Prior research often illustrated the impact of emerging financial technology on industries at the moment or during a pandemic. However, little attention has been devoted to these impacts during the pandemic. Given a sight from the consumer's perspective, we tried to examine the causality between financial technology's growth and the bank's performance and efficiency. We utilized conventional banks as our population with sample criteria listed banks in Southeast Asia from 2017 to 2019. We employed generalized least squares and the generalized method of moment as regression methods to examine those causalities. Descriptive statistical analysis, determining estimation models, and classical assumption tests were also carried out. A total sample of 102 banks, Our findings suggest that ever since pre-pandemic, financial technology has significantly impacted banks' performance and efficiency. The growth of financial technology caused a significant decrease in the bank's performance and an increase in the bank's efficiency. Keywords: Financial Technology, Performance, Efficiency, Banking, Pre-Pandemic Abstrak Wabah Covid-19 diketahui menjadi katalis digitalisasi pada semua industri termasuk industri keuangan melalui munculnya teknologi keuangan. Penelitian sebelumnya sering menjelaskan mengenai dampak teknologi keuangan pada saat atau pasca pandemi. Namun, masih sedikit penelitian yang berfokus pada dampak tersebut sebelum pandemi terjadi. Melihat dari sudut pandang konsumen, peneliti mengkaji hubungan sebab akibat antara pertumbuhan teknologi keuangan terhadap kinerja dan efisiensi bank. Menggunakan populasi bank konvensional dengan kriteria sampel bank yang terdaftar di bursa Asia Tenggara pada tahun 2017 hingga 2019. Peneliti mengoperasikan Generalized Least Square dan Generalized Method of Moment sebagai metode regresi untuk menguji hubungan tersebut. Selain itu dilakukan juga analisa descriptive statistic, determining estimation model, dan uji asumsi klasik. Dengan total sampel 102 bank, temuan menunjukkan bahwa sejak sebelum pandemi, teknologi keuangan telah berdampak signifikan terhadap kinerja dan efisiensi bank. Pertumbuhan teknologi finansial menyebabkan penurunan kinerja bank secara signifikan dan peningkatan efisiensi bank Kata kunci: Teknologi Finansial, Kinerja, Effisiensi, Perbankan, Pra Pandemi

The impact of financial technology on China's low-carbon transformation of energy and mechanism analysis.

Financial technology provides strong support for the low-carbon transformation of energy through digital technology. There is limited research on the relationship between financial technology and low-carbon transformation of energy, and the information transmission and connection between the two entities are still unclear. Therefore, this paper innovatively conducts in-depth research on the spatial effect between financial technology and low-carbon transformation of energy and further analyzes the intermediary role of green finance in it. Firstly, the spatial Durbin model and spatial intermediary effect model between financial technology and low-carbon transformation of energy are constructed. Then, based on the Moran coefficient, the spatial effects of low-carbon transformation in financial technology and energy were analyzed. Finally, an empirical study was conducted using the panel data of China's provinces from 2011 to 2020. The results show that financial technology can effectively promote the energy transformation, and financial technology and the degree of low-carbon transformation of energy have significant spatial effects. From the perspective of intermediary effect, financial technology can effectively improve the green finance structure and promote low-carbon transformation of energy. From the perspective of spatial intermediary effect, while promoting the development of green finance in the local area, financial technology will also suppress the development of green finance in surrounding areas, thereby inhibiting the low-carbon transformation of energy in the surrounding areas. Therefore, China should strengthen the development of financial science and technology, guide the transformation of traditional finance, improve the coverage of green finance, and realize the low-carbon transformation of national energy.

The impact of financial technology and risk management practices on corporate financial system profitability: evidence from Kuwait

A vital element of the stability of banking institutions is the presence of an effective risk management system, as well as the financial stability of the corporate sector of the economy in terms of the fulfilment of assumed credit obligations. This study investigates the relationship between financial technology (Fintech) adoption, risk management practices and corporate profitability in Kuwait. The object of the study was 62 industrial enterprises registered on the stock market of Kuwait as of 2022. Methods of descriptive statistics, least squares method for estimating regression model parameters, and correlation analysis served as methodological tools of this study. This study aims to overcome the gaps in theoretical justification and empirically prove the existence of a relationship between the implementation of financial technologies and risk management methods. The results showed a positive correlation between the development of financial technologies and return on assets (correlation coefficient 0.6540), which indicates that implementing innovative financial technologies will contribute to improving the efficiency of banking institutions. The strong and positive correlation between the effectiveness of risk management and the profitability of business entities emphasizes the importance of responsible risk management practices for increasing banking institutions’ profitability. Based on the results of building a regression model, it was established that fintech has a significant impact on indicators of the return on equity of economic entities (р<0.050, t = 1.7700). The originality of this study lies in its focus on Kuwait and the Middle East as a whole and in its exploration of the relationship between corporate financial system profitability, risk management strategies and Fintech adoption. The use of innovative technologies (advanced analytics, artificial intelligence and blockchain) increases the effectiveness of risk management, which contributes to rational decision-making and a better understanding of the banking institution’s potential risks and development opportunities. This study contributes significantly to the existing literature by highlighting the relationships between financial technology innovation adoption, risk management and business financial performance in a market environment in the Middle East.

The Impact of Financial Technology on GDP and Home Prices: Evidence from China

This paper investigates the impact of financial technology (FinTech) on GDP and home prices in China. Using robust econometric techniques and a comprehensive dataset, we find that FinTech has a positive and significant effect on both GDP and home prices. These findings highlight the potential of FinTech to drive economic growth and positively influence the housing market. The results have important implications for policymakers seeking to leverage FinTech for sustainable economic development and housing market stability.

The Changing Landscape of Financial Credit Risk Models

The landscape of financial credit risk models is changing rapidly. This study takes a brief look into the future of predictive modelling by considering some factors that influence financial credit risk modelling. The first factor is machine learning. As machine learning expands, it becomes necessary to understand how these techniques work and how they can be applied. The second factor is financial crises. Where predictive models view the future as a reflection of the past, financial crises can violate this assumption. This creates a new field of research on how to adjust predictive models to incorporate forward-looking conditions, which include future expected financial crises. The third factor considers the impact of financial technology (Fintech) on the future of predictive modelling. Fintech creates new applications for predictive modelling and therefore broadens the possibilities in the financial predictive modelling field. This changing landscape causes some challenges but also creates a wealth of opportunities. One way of exploiting these opportunities and managing the associated risks is via industry collaboration. Academics should join hands with industry to create industry-focused training and industry-focused research. In summary, this study made three novel contributions to the field of financial credit risk models. Firstly, it conducts an investigation and provides a comprehensive discussion on three factors that contribute to rapid changes in the credit risk predictive models’ landscape. Secondly, it presents a unique discussion of the challenges and opportunities arising from these factors. Lastly, it proposes an innovative solution, specifically collaboration between academic and industry partners, to effectively manage the challenges and take advantage of the opportunities for mutual benefits.

How effective is the banking and financial services sector in the United Arab Emirates in using technological innovations

The paper’s goal is to determine the current state and trends of Fintech development in the United Arab Emirates’ (UAE) financial sector, customer satisfaction with financial technology implementation in the banking sector, and the impact of financial technologies on the efficiency and competitiveness of financial and banking institutions. Qualitative research conducted through a structured questionnaire is designed to collect data from 500 banking service clients in the UAE. The data was collected through email communication and WhatsApp using Google forms. The data was evaluated using the Likert scale of five-point: 1 = strongly disagree to 5 = strongly agree. According to the survey results, the majority of respondents are familiar with FinTech services. The most demanded FinTech service was an app for financial management. Furthermore, the majority of respondents stated that the services they supplied were innovative to them, and the same percentage stated that they were pleased with the services given by their banks. Hence, better service associated with FinTech is seen as a major incentive for them to leave their current bank to the digital one. In addition, when selecting a bank, reliability is the most important criterion, with ease of use of its services ranking in second.

Impact of Financial Technology, Banking Access on Financial Inclusion with mediating role of Financial Literacy

Impact of Financial Technology, Banking Access on Financial Inclusion with mediating role of Financial Literacy

Impact of Financial Technology on Improvement of Banks’ Financial Performance

This study investigates the main financial technologies adopted by banks to improve their financial performance. The study population consists of commercial banks listed on the Amman Stock Exchange and Abu Dhabi Securities Exchange, and includes financial information and data from 2012 to 2020. A total of 115 questionnaires, consisting of five questionnaires for each bank, were distributed to the study population in Jordan and the United Arab Emirates. The dependent variable is financial performance, while the independent variable is financial technology (FinTech). Multiple linear regression analysis was conducted to test the hypotheses. The results showed that FinTech has a positive effect on both total deposit and net profits. This study recommends that banks be encouraged to adopt inclusive strategies to attain sustainable development.

Regional financial technology and shadow banking activities of non-financial firms: Evidence from China

Financial technology has greatly revolutionized the finance industry. However, the impact of financial technology on the shadow banking activities of non-financial firms has not been examined. Using a sample of Chinese listed firms from 2011 to 2018, we find that regional financial technology is positively associated with the shadow banking activities of non-financial firms, which is more pronounced for firms with low profitability and firms listed only in China’s A-share market. We show that financial technology can enhance the shadow banking activities by alleviating financing constraints. In addition, an increase in the equalization of profit rate and an increase in investment in the real economy reduce the positive effect of financial technology on the shadow banking activities. Further analysis suggests that financial regulations can attenuate excessive shadow banking activities of non-financial firms driven by financial technology.

The Impact of Financial Technology on the Financial Value of Enterprises

In the context of the scientific and technological revolution and industrial transformation, financial technology has developed vigorously, solving the problem of financing difficulties for SMEs. And it enables SMEs to develop smoothly and improve self-value. So, it is of great importance to go deeply into the impact of financial technology on the enterprise’s value. Based on the financial data source of Chinese A-share listed companies and the digital inclusive financial index of China’s provinces and cities from 2013 to 2020, this paper uses the two-way fixed effect model to explore the relationship between financial technology and the financial value of enterprises. This paper finds that the development of financial technology can effectively enhance enterprises’ financial value. Therefore, enterprises should correctly use the advantages brought by financial technology to achieve value enhancement, which is of great significance to most enterprises.

Influence of Fintech on Bank Outlets

In recent years, the rapid development of financial technology in China not only promotes the development of traditional Chinese banks, but also has a great impact on traditional banks to a certain extent. As the smallest service unit of commercial banks, grass-roots outlets bear the brunt of this wave of new technology. Commercial banks have realized the importance and urgency of outlet transformation one after another, and explored outlet transformation as an important cornerstone of commercial bank transformation. Financial technology not only brings new vitality to commercial banks, but also has an unprecedented impact on them. In this regard, commercial banks must actively adapt to the changes in customer needs and the new needs of the development of financial technology. Under the new situation, we should use financial technology to innovate business processes and delivery methods, innovate the business forms of outlets, promote the transformation of outlets into marketing centers, build a mobile payment ecosystem, and develop derivative services. Therefore, this paper analyzes the development status of China's financial technology and bank outlets, the impact of financial technology on China's commercial banks, and on this basis, analyzes the countermeasures that commercial banks should take when facing the challenges of financial technology.

A Study on the Impact of Financial Technology on Medium, Small and Micro Enterprises in China

This paper focuses on the impact of FinTech on Medium, Small and Micro Enterprises (MSMEs) in China, firstly exploring the application and development of FinTech in China’s credit services for MSMEs, and then focusing on inclusive MSME lending by Chinese banking financial institutions from 2015 to 2021. The paper then analyses the development status and background of BTI. In order to solve the problem of difficult and expensive financing for enterprises, the paper analyzes and summarizes two feasible integration and innovation models: “blockchain + BTI” and “digital economy + BTI”. Finally, by studying the relationship between blockchain technology, cryptocurrency and cross-border payment industry and enterprise operation, the working principle of blockchain technology to enhance the efficiency of cross-border payment is analysed and mapped out based on relevant literature and data.

The Impact of Financial Technology on Traditional Financial Systems and Future Trends

The Impact of Financial Technology on Traditional Financial Systems and Future Trends

The Impact of Financial Technology (Fintech) on the Financial and Banking Services Sector and Its Applications in the Islamic Financial Industry

The Impact of Financial Technology (Fintech) on the Financial and Banking Services Sector and Its Applications in the Islamic Financial Industry

The Impact of Financial Technology on Banking Performance: A study on Foreign Banks in UAE

The Impact of Financial Technology on Banking Performance: A study on Foreign Banks in UAE

The Impact of Financial Technology, Intellectual Capital and Board of Commissioners on Banking Financial Performance

The purpose of this study was to provide empirical evidence regarding the impact of the existence of financial technology, intellectual capital, and the board of commissioners on the financial performance of banks in Indonesia. The method used is quantitative research with secondary data taken from the annual report at idx and the availability of banking fintech applications on google playstore with data collection techniques using purposive sampling. Analysis of the data used is multiple linear regression on SmartPLS4. The population in this study are banking companies that publish annual reports from 2019 to 2021. The results of this study indicate that intellectual capital and independent commissioners have a positive and significant effect on banking financial performance, while financial technology has an insignificant but not significant effect on banking financial performance.

The Impact of Financial Technology onPromoting the Financial Inclusion of Banks in Arab Countries

Thisresearch highlightsthe importance of financial technology (FinTech) in banking by providingfinancial and banking services; it also tries to show the impact of such FinTech in promoting financial inclusion to deliver all financial products to a wide segment of customers of different ages and for both sexes, especially the poor. Hence, FinTech worksto improve peoplestandard of living by giving them credit at low costs as well as involving all sectors, including small and medium enterprises, with indicators of access to financing. Furthermore, whether FinTech is provided by non-financial companies, individuals or financial and banking institutions, it provides the necessary and rapid financing at the lowest profits. Lately, anemergency financing is introduced, which contributes to supporting sustainable development opportunities.This study applied the descriptive and analytical approach. It relied on revising Arabic and foreign sources and electronic websites related to the topic under study. The experience of the Arab countries has been provided to understand the obstacles they faced and how to overcome them and the opportunities that appeared in front of them.The researcher got some conclusions and recommendations that the purpose of financial inclusion is to integrate the financial excluded individuals in the official financial system. The study reported that among the difficulties faced by FinTech is the weak financial culture of the public. However, this did not stand as an obstacle; the Arab world witnessed a great development in the field of FinTech. Yet, some Arab countries had the lionshare, such as the United Arab Emirates. The use of FinTech in the Arab countries faces a number of challenges, including legal, regulatory and financing related to capital.FinTech usingthe mobile subscribers index plays an effective role in achieving financial inclusion, through the indicators of FinTech and financial inclusion.Most Arab countries still score the lowest levels for the financial inclusion index, due to the lack of interest or development of FinTech, which negatively affects the rise in the financial inclusion index