Fintech and its challenge for banking sector

Lestari, Diyan; Rahmanto, Basuki Toto

doi:10.33062/mjb.v6i1.428

Cited by 12 publications

(9 citation statements)

References 11 publications

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“…Specifically, when the innovation provides more advantages than the current idea, it has more relative advantages, making users more likely to adopt it. FinTech is considered the best alternative to traditional financial services for consumers (Bains and Wu, 2023;Lestari and Rahmanto, 2023). With the introduction of FinTech services, banks are expected to increase the accessibility of their services and products, hence reaching more customers.…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

Expediting financial inclusion in Tanzania using FinTech: the perspective of diffusion of innovation theory

Koloseni,

Mandari

2024

TECHS

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PurposeThe purpose of this paper is examining how financial inclusion can be enhanced in rural and remote areas in emerging economies through the adoption of Financial technologies. The study examines the direct influence of technological characteristics, facilitating conditions, trust and perceived risk on adoption of FinTech. Furthermore, the study examines the mediating effects of facilitating conditions and moderating effects of education level in adoption of FinTech.Design/methodology/approachThe study employed quantitative research design. Stratified and simple random sampling were employed to identify areas in which respondents will be collected. Drop and Pick method was further employed to collect 275 valid and reliable responses. Structural equation modeling was used to analyze the data and assess the reliability and validity of the measurement model. Structural model analysis was employed to examine the hypothesized relationship.FindingsThe results show that compatibility, complexity agent trust, perceived risk and facilitating have significant influence on adoption of FinTech. Furthermore, the findings show that facilitating conditions mediate the relationship between all technological characteristics and FinTech adoption except the relationship between compatibility and FinTech. The study also has found that education level moderates the relationship between observability and FinTech adoption as well as trialability and FinTech adoption.Research limitations/implicationsThis study employed cross-sectional research-based techniques in collecting data for analyzing the hypothesized relationship. However, the drawback of cross-sectional may impact the findings of this study over a long time. Therefore, future studies must consider conducting longitudinal studies which may collect data over some time for analysis of the FinTech adoption. Furthermore, the generalization of these findings should be considered carefully by other countries which are not economically similar to Tanzania and developed countries. This also provides room for future studies to examine the same area in countries with different economic development.Originality/valueThis study contributes to knowledge into two folds: First there is limited knowledge on adoption of FinTech in emerging economies; the study addresses the knowledge gap by providing empirical findings which will help scholar. Furthermore, less studies have examined the moderating effects of facilitating condition in adoption of technology. This study addresses the knowledge gap by examining the moderating influence of moderating influence of facilitating conditions. Also, this study provides empirical findings which will help policymakers to implement strategy that will speed-up financial inclusion in rural and isolated areas in emerging economies.

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Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

Expediting financial inclusion in Tanzania using FinTech: the perspective of diffusion of innovation theory

Koloseni,

Mandari

2024

TECHS

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“…The keywords include bank, banking, big data, blockchain, digital economy, digital technologies, financial services, management, technology, and transformation. FinTech offers alluring promotions, and cardless and cashless transactions are becoming important factors for optimizing financial transactions (Lestari and Rahmanto, 2021).…”

Section: Resultsmentioning

confidence: 99%

Paradigm shift in the digital transformation of the banking sector: A bibliometric analysis

Lavanya,

Dunstan Rajkumar

2024

Int. j. adv. appl. sci.

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This study attempts to provide a comprehensive analysis of the impact of digital technology on the banking industry. The banking industry is undergoing a rapid paradigm shift, driven by the need for reliable, intuitive, and efficient financial services, as well as the proliferation of innovative financial technologies and changing regulations. This calls for a comprehensive study of digital transformation in the banking industry. The main objective of the study is to analyze the growth pattern of technological transformation in the banking industry. This paper adopts bibliometric analysis of data with substantial use of R package and VOSviewer software. The study examines 328 articles published in the Web of Science and Scopus databases between 2009 and 2023. The results show an increasing trend of 18.29% in the publication of articles based on their annual production. The study conducted a network analysis to identify the paradigm shift in banking technology related to FinTech, innovation, digital transformation, adoption of digital banking technology, digital economy, e-commerce, and digitization. The results show that the period from 2017 to 2023 is of great importance, as it has witnessed a significant increase in the volume of publications related to digital transformation in the banking sector.

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“…The existence of Fintech has affected the financial sector, particularly the banking industry. However, Fintech services' capacity to offer financial services is limited and banking institutions still play a significant role as intermediary institutions in the economy (Lestari and Rahmanto, 2021). Fintech's impact on the banking sector is still extensively discussed and will ultimately depend on how banks plan to reply to Fintech's strategy and regulatory procedures.…”

Section: Discussionmentioning

confidence: 99%

Banking Goes Digital: The Main Determinants of the Clients’ Satisfaction and Trust toward Fintech-Based Services

Rhanoui

2022

IJEFI

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Financial technology, also known as Fintech, is changing banking for the better worldwide through companies with innovative business models, fresh products and services. Indeed, operators in this industry offer various financial services that were once the exclusive domain of banks; accordingly, Fintech can be an opportunity for both banks and customers. Therefore, this paper aims to identify the main features contributing to clients’ satisfaction and trust when using Fintech-based services in their banking transactions. This study presents and interprets the results of a survey on clients’ preferences and willingness to use the Fintech services offered by their banks. The scores were calculated based on analyze of variance (ANOVA) and Chi 2 methods, using Python language. Even though there were minor differences in detail and other trivial variables, both methods identified the same main factors than lead to banking customers’ satisfaction with Fintech and trust in the functioning of this industry.

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Fintech and its challenge for banking sector

Cited by 12 publications

References 11 publications

Expediting financial inclusion in Tanzania using FinTech: the perspective of diffusion of innovation theory

Expediting financial inclusion in Tanzania using FinTech: the perspective of diffusion of innovation theory

Paradigm shift in the digital transformation of the banking sector: A bibliometric analysis

Banking Goes Digital: The Main Determinants of the Clients’ Satisfaction and Trust toward Fintech-Based Services

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