Do financial technology firms influence bank performance?

Phan, Dinh Hoang Bach; Narayan, Paresh Kumar; Rahman, R. Eki; Hutabarat, Akhis R.

doi:10.1016/j.pacfin.2019.101210

Cited by 236 publications

(282 citation statements)

References 74 publications

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“…They also argue that the increasing patronage of Fintech players by banks' loyal customers will lead to a decline in the net interest margin of traditional banks. Phan et al (2019) examine whether the growth of financial technology (Fintech) negatively affects bank performance. Using a sample of 41 banks, they show that the growth of Fintech firms negatively affects bank performance.…”

Section: Fintech Evolutionmentioning

confidence: 99%

Banking sector earnings management using loan loss provisions in the Fintech era

Ozili¹

2020

IJMF

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PurposeThis paper analyzes banking sector earnings management using loan loss provisions (LLPs) in the Fintech era.Design/methodology/approachRegression methodology was used to examine earnings management in the Fintech era.FindingsThe findings show evidence for bank income smoothing using LLPs. There is greater income smoothing in the second-wave Fintech era compared to the first-wave Fintech era, and the presence of strong institutions did not lower income smoothing in the second-wave era. Bank income smoothing is also greater in (1) Bank of International Settlement (BIS) and EU countries than in non-EU countries and G7 countries, (2) well-capitalized banking sectors and (3) during economic booms in the second-wave Fintech era.Practical implicationsThe competition for loans and deposits by banks and Fintech lenders in the second-wave Fintech era created additional incentives for banks to engage in income smoothing to report competitive and stable earnings.Originality/valueThe study uses a unique approach to detect country-level earnings management in the banking sector. Also, this study extends the bank earnings management literature by introducing the Fintech era as a determinant of the extent of bank earnings management.

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Section: Fintech Evolutionmentioning

confidence: 99%

Banking sector earnings management using loan loss provisions in the Fintech era

Ozili¹

2020

IJMF

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“…In recent years, financial technology has set off a huge wave all over the world and such disruptive innovation that combines technology with financial services has posed a threat to the business model of the traditional financial sector [4]. Amid this wave, the banking industry was the first to bear the brunt.…”

Section: Introductionmentioning

confidence: 99%

Analyzing the factors influencing adoption intention of internet banking: Applying DEMATEL-ANP-SEM approach

2020

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The main purpose of this study is to propose a research model to explore the key factors affecting consumers' willingness to use online banking. There are two stages in this research. Firstly, the decision making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP) were used to explore the key factors of companies in operation of online banking. Secondly, the structural equation modeling (SEM) was used to explore the key factors of consumers' actual use of online banking. The results showed differences in the factors that companies and consumers adopted. Based on the findings, companies can adjust their business strategies and improve the consumers' willingness of online banking usage. The primary factor valued by both companies and consumers is trust. Hence, in the business of internet banking, the companies must strengthen areas such as liquidity monitoring, information security, and compliance with financial regulations, in order to reduce risks and gain customers' trust.

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“…First, high-tech in banking should be further applied in the Vietnamese banks. High-tech is expected to diversify bank services provided to customers due to easy access and low transaction costs (Phan, Narayan, Rahman, and Hutabarat, 2019). Second, the SBV should remove limitations on credit growth to improve the scale efficiency; nonetheless, this action should be conducted cautiously to avoid the return of bad loans.…”

Section: Resultsmentioning

confidence: 99%

An Analysis of Vietnamese Bank Productivity Change in the Time of Restructuring

To¹,

Le²

2020

JAFEB

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Commercial banks play an important role as the main source of funding in the transition process of Vietnam as a market economy. As a result, enhancing the efficiency and productivity of Vietnamese banks can decrease the lending cost for individuals and enterprises. This study is to measure and analyze the productivity change of Vietnamese banking system in different ownership cohorts and sources of this change during the period of restructuring (2011-2019). The Hicks-Moorsteen total factor productivity index is utilised to measure the productivity change and to identify the sources of this change. For an empirical analysis, the data of 28 Vietnamese commercial banks from 2011 to 2018 is collected from their financial statements including balance sheets and income statements. The results show an increase of Vietnamese bank productivity due to the technological progress. While foreign and joint-venture banks are the most advanced cohort, stateowned banks have the lowest rate of productivity growth. The restructuring program negatively impacts scale efficiency and this measure attributes to a decline in the overall efficiency of the banks. We also found that state-owned commercial banks are the most efficient group in the sense that they can achieve the maximal level of revenue from a given amount of expense.

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Do financial technology firms influence bank performance?

Cited by 236 publications

References 74 publications

Banking sector earnings management using loan loss provisions in the Fintech era

Banking sector earnings management using loan loss provisions in the Fintech era

Analyzing the factors influencing adoption intention of internet banking: Applying DEMATEL-ANP-SEM approach

An Analysis of Vietnamese Bank Productivity Change in the Time of Restructuring

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