International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 10, Issue 8 (August 2023), Pages: 71-77

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 Original Research Paper

The impact of digital evolution and FinTech on banking performance: A cross-country analysis

 Author(s): 

 Mohammed Ibrahim Alattass *

 Affiliation(s):

 Department of Management Information System, College of Business, University of Jeddah, Jeddah, Saudi Arabia

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0009-0002-6285-3183

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2023.08.008

 Abstract:

Amidst the intricate web of economic dynamics, the significance of banking performance resonates deeply, serving as a linchpin for a nation's financial equilibrium and economic prosperity. The imperative of vigilantly tracking the trajectory of banks' performance emerges as this vigilance underpins the stabilization and fortification of credit institutions. In the contemporary milieu, a landscape characterized by rapid transformations and economic nuances, the digital sphere is propelling a substantial metamorphosis, thus catalyzing an imperative for the assimilation of financial technology (FinTech) within financial services, particularly within banking institutions. This empirical study embarks upon a discerning journey, harnessing a cross-country lens and a panel dataset encompassing five prominent nations spanning the years 2017 to 2019. The central inquiry pertains to the nuanced interplay between the digital milieu, FinTech deployment, and the fabric of banking performance. The empirical analysis reveals a noteworthy confluence: the utilization of digital platforms and FinTech solutions bears a detrimental association with the performance of banking entities categorized as high-performing. Moreover, this inquiry unveils a nexus between FinTech variables, including solidity, inflation informer, and total productivity factors, with an adverse impact on Banks' Performance. However, a silver lining emerges as the study highlights the augmentation of bank financial performance through the confluence of liquidity, Gross Domestic Product (GDP), and FinTech credit infusion. Emanating from these insights, the implications cascade expansively. For bank custodians and stakeholders, an enriched comprehension of the intricate interplay between FinTech and performance crystallizes, thereby fortifying the resilience of financial institutions against adversities through performance augmentation.

 © 2023 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Banking performance, Financial stability, Economic prosperity, Digital transformation, FinTech impact

 Article History: Received 10 March 2023, Received in revised form 20 June 2023, Accepted 27 June 2023

 Acknowledgment 

This work was funded by the University of Jeddah, Jeddah, Saudi Arabia, under grant No. UJ-23-SHR-60. The authors, therefore, thank the University of Jeddah for its technical and financial support.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Alattass MI (2023). The impact of digital evolution and FinTech on banking performance: A cross-country analysis. International Journal of Advanced and Applied Sciences, 10(8): 71-77

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