Impact of E-Banking on the Islamic bank profitability in Sub-Saharan Africa: What are the financial determinants?

Adalessossi, Kokou

doi:10.1016/j.frl.2023.104188

Cited by 5 publications

(16 citation statements)

References 59 publications

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“…In contrast, non-linear regression is employed when the relationship between variables is non-linear and cannot be effectively represented by a straight line (Kumar 2006). Among the gathered articles, the majority utilized linear regression analysis (Adalessossi 2023;Kharrat et al 2023;E. Li et al 2023;Yudaruddin 2023;Aguegboh et al 2022;Al-Matari et al 2022;Haddad and Hornuf 2022;Katsiampa et al 2022;Almulla and Aljughaiman 2021;Awwad 2021;Bashayreh and Wadi 2021;Carlini et al 2021;Del Gaudio et al 2021;Nguyen et al 2021;X.…”

Section: Resultsmentioning

confidence: 99%

“…The ATM ratio is a component of the technological infrastructure assets and signifies investments in Information Technology (IT) (Del Gaudio et al 2021). The SLR uncovered that four articles (Adalessossi 2023;Lu 2022;Del Gaudio et al 2021;Bashayreh and Wadi 2021) had utilized the ATM ratio to indicate Fintech at the bank level. Two studies (Del Gaudio et al 2021;Bashayreh and Wadi 2021) showed that a higher ATM ratio contributed to enhanced bank profitability, whereas the other two studies (Adalessossi 2023;Lu 2022) observed the contrary effect.…”

Section: Measuring Fintech Using Bank-level Datamentioning

confidence: 99%

“…Electronic payments are the third subtheme. Numerous contemporary research endeavors have focused on electronic payment methods as a means to enhance service quality and subsequently improve the financial performance of banking institutions (Kharrat et al 2023;Adalessossi 2023;Lu 2022;Awwad 2021). The articles above demonstrated that electronic payments significantly bolster profitability.…”

Section: Measuring Fintech Using Bank-level Datamentioning

confidence: 99%

“…Besides size, Liquidity can impact banks' profitability, as those with higher levels of Liquidity are more likely to exhibit superior performance (Nguyen et al 2021). In addition, loan quality affects bank profitability, as high-quality loans ensure consistent interest income and require lower provisions for losses, increasing revenue and reducing operating costs (Adalessossi 2023).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

A Systematic Review of Fintech and Banking Profitability

Tarawneh,

Abdul-Rahman,

Mohd Amin

et al. 2024

IJFS

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Financial technology (Fintech), characterized as technology-driven financial innovation, has catalyzed significant economic growth across various nations. The Fintech sector has experienced remarkable expansion, boasting vast user numbers. While regions like the United States and China have seen accelerated Fintech development, other areas like Western Europe, Eastern Asia, and the Middle East continue their evolutionary journey with this technology. Our research offers a systematic review of contemporary literature, probing the crucial Fintech metrics affecting bank profitability and identifying the primary factors influencing these profits. This review introduces a holistic methodology for quantitatively assessing the evolving Fintech measures and their interplay with determinants of bank profitability. According to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, our study evaluates 28 articles from Web of Science and Scopus databases from August 2019 to August 2023. Findings delineate two principal themes: Fintech measures at both bank and country levels and determinants of profitability, encompassing bank-specific and country-specific variables. We utilize the Theories, Constructs, Contexts, and Methods framework to chart the course for future research. Our insights bear significance for theoretical progression and practical implementation, offering academics, banking professionals, and policymakers a nuanced comprehension of the nexus between Fintech and bank profitability.

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Section: Resultsmentioning

confidence: 99%

Section: Measuring Fintech Using Bank-level Datamentioning

confidence: 99%

Section: Measuring Fintech Using Bank-level Datamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

A Systematic Review of Fintech and Banking Profitability

Tarawneh,

Abdul-Rahman,

Mohd Amin

et al. 2024

IJFS

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“…iainlangsa.ac.id/index.php/ebisPeran Bank Syariah dalam Pembangunan EkonomiKarena kepatuhan mereka terhadap prinsip-prinsip syariah Islam, lembaga-lembaga Islam memainkan peran penting dalam pembangunan ekonomi negara-negara berkembang. Skema pembiayaan berbasis Profit and Loss Sharing (PLS), seperti Mudarabah dan Musyarakah, adalah salah satu karakteristik yang paling menonjol dari lembaga Islam(Adalessossi, 2023;Rouetbi et al, 2023;Suzuki & Miah, 2023). Melalui metode ini, bank berbagi risiko dan imbalan dengan pelanggan, sehingga mendorong mereka untuk membiayai dengan lebih hati-hati dan bijaksana.…”

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Interaksi Bank Syariah dan Variabel Makroekonomi dalam Mendorong Pertumbuhan Ekonomi di Negara Berkembang

Kismawadi

2023

J-EBIS

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This study aims to examine the empirical impact of the Islamic banking sector, inflation rate, and currency exchange rate on the economic growth of Saudi Arabia, United Arab Emirates, Kuwait, Malaysia, Qatar, Bahrain, and Bangladesh from 2014 to 2022. For the purpose of further investigation, a total of 717 observations were selected according to certain criteria. The sample consisted of 24 banks from seven countries that have the highest aggregate assets on a global scale. Data is collected quarterly. This research approach is quantitative research using the Vector Error Correction Model as an analysis technique. Long-term analysis is tested using cointegration analysis. Impulse response function (IRF) and variance decomposition (VD) techniques were used in this study to show how each macroeconomic variable shock affects the short-term dynamic path of all system variables. The results of the study found that the shock of the majority of research variables was responded positively by GDP except for inflation which in the initial period of the shock was responded negatively by GDP. The results of the Variance Decomposition GDP analysis can be explained that in the initial period GDP variance was formed sequentially from the exchange rate variance, inflation, Total Assets of Islamic Banks, Total Assets of Islamic Banks, and the contribution of Islamic bank assets continued to increase during the observation period.

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Bank FinTech and bank performance: evidence from an emerging market

Kayed,

Alta’any,

Meqbel

et al. 2024

JFRA

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Purpose This study aims to explore the effects of internal financial technology (FinTech) integration within Jordanian banks on their performance metrics, specifically focusing on profitability, risk-taking and stock returns. Design/methodology/approach Using panel data analysis, this study investigates the financial performance of 13 listed commercial banks in Jordan over a decade, from 2010 to 2019, to examine the hypothesized impacts of bank FinTech developments. In addition, several robustness tests addressing potential issues of endogeneity and autocorrelation are conducted to enhance the reliability of the results. Findings The results reveal that the bank FinTech development significantly enhances bank profitability and inversely affects risk-taking levels, indicating a substantial and positive impact on financial performance and stability. However, the results suggest no significant evidence of the effect of bank FinTech development on stock return. Practical implications The findings advocate for Jordanian commercial banks to continue and expand their investment in FinTech innovations, highlighting the crucial role these technologies play in enhancing financial performance and reducing bank risks. Additionally, these findings suggest that regulatory bodies and policymakers should develop and enhance institutional and regulatory environments to support and guide the FinTech evolution within the banking sector. Originality/value This study sheds light on the relatively under-researched area of internal bank FinTech. It provides critical insights into how FinTech integration within banks contributes to their profitability and stability, offering another perspective that enriches the FinTech literature. This contribution is essential for devising future strategies, developing theoretical frameworks and informing policy decisions in the FinTech domain.

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Impact of E-Banking on the Islamic bank profitability in Sub-Saharan Africa: What are the financial determinants?

Cited by 5 publications

References 59 publications

A Systematic Review of Fintech and Banking Profitability

A Systematic Review of Fintech and Banking Profitability

Interaksi Bank Syariah dan Variabel Makroekonomi dalam Mendorong Pertumbuhan Ekonomi di Negara Berkembang

Bank FinTech and bank performance: evidence from an emerging market

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