The Effect of Financial Technology Investment Level on European Banks’ Profitability

Chhaidar, Ahlem; Abdelhédi, Mouna; Abdelkafi, Inès

doi:10.1007/s13132-022-00992-1

Cited by 38 publications

(31 citation statements)

References 51 publications

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“…Financial technologies have the potential to reduce costs by maximising economies of scale, increasing the speed and security of transactions, but at the same time authorities and policy makers need to establish new regulations to enhance the integration of these new financial technologies by banks and consequently improve the stability and prosperity of the financial sector. However, legislation also needs to be similarly strengthened to supervise banks in the area of environmental technology and to guarantee the security of the new services and products developed for consumers (Chhaidar et al, 2022).…”

Section: Research Resultsmentioning

confidence: 99%

The Impact of Education and Technology on Sustainability and Profitability in the Banking Sector

Anghel¹

2022

European Proceedings of International Conference on Education and Educational Psychology

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The article reflects on the impact of financial education and technology on sustainable development methods for banks of the three global players (US, Europe and Asia-China) during the period between the global financial crisis and the pandemic crisis. The first two parts of the research highlight the relationships between the financial literacy and the degree of technological development of these three banking systems along with the results of other significant research on this issue. The third part of the research comprises the empirical study based on a series of indicators that can be assimilated to financial education and technological development, relevant indicators to the performance of the banking system, as well as indicators that can be assimilated to sustainability. The sample of analyzed countries contains a selection of 29 countries on three continents (USA, Europe and Asia-China) over a 12-year period between (2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019)(2020). The selection of these countries was based on the fact that together they account for about 62% of the world's GDP. The empirical study was based on the use of the Autoregressive Panel Vector methodology in order to identify the inter correlations between the indicators used in the research. Thus, the impact of each variable related to financial education and technology development in the short and long term was identified. The fourth part highlights the obtained results, together with qualitative correlations that add value to the research. The paper includes a final part with conclusions by the authors

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Section: Research Resultsmentioning

confidence: 99%

The Impact of Education and Technology on Sustainability and Profitability in the Banking Sector

Anghel¹

2022

European Proceedings of International Conference on Education and Educational Psychology

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“…A growing body of literature has focused on the relationship between banks' digitalisation and their performance. While some studies have found a positive relationship between banks' technological investments and performance (Casolaro & Gobbi, 2007; Chhaidar et al., 2022; Chowdhury, 2003; Kozak, 2005), others have not found such a relationship (Beccalli, 2007; Borello et al., 2022; Markus & Soh, 1993). These conflicting results highlight the challenge of objectively determining a bank's level of technological digitalisation and how it affects performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Digital innovation and de‐branching in the banking industry: Customer perception and satisfaction

Carbó‐Valverde,

Cuadros‐Solas,

Rodríguez‐Fernández

et al. 2024

Global Policy

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In the ever‐changing landscape of the banking industry, digital transformation has become a major challenge. Banks are transitioning towards digitalisation by utilising information and digital technologies while reducing their branch networks. This paper investigates the relationship between technological innovation and banking customers' perception and satisfaction. By analysing a comprehensive consumer finance survey, we assess how the digital transformation of banks is perceived by customers and its impact on their satisfaction. Our results demonstrate that customer perceptions of a bank's digital innovativeness are positively associated with effective digital transformation. Customers tend to be more satisfied with banks that have a higher degree of digitalisation. Furthermore, our findings reveal that customers view banks as more innovative when the reduction in bank branches since the pandemic has been more intense. These insights shed light on the technological transformation of banks and its influence on their customers, providing valuable information for banks seeking to navigate the digital landscape and improve customer satisfaction.

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“…With data from industrial and commercial banks in China, their study showed that fintech has a U-shaped impact on bank profitability such that in its initial stages, it reduces bank performance and gradually increases bank performance over time. By applying the fully modified ordinary least squares model, Chhaidar et al (2022) studied the effect of the investment level of fintech on the profitability of 23 European banks from 2010 to 2019. The results of their study showed that financial technology has a significant positive effect on bank profitability.…”

Section: Literature Reviewmentioning

confidence: 99%

Is financial technology a complement or substitute for domestic financial institutions in Ghana?

Antwi-Wiafe,

Asante,

Takyi

2023

JFEP

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Purpose This paper aims to examine whether financial technology is complementing the performance of domestic financial institutions or substituting their performance in Ghana. Design/methodology/approach The paper used data from the Bank of Ghana Payment System Statistics and Time Series Data of the Bank of Ghana from 2012 to 2021, by using autoregressive distributive lags estimation technique. Findings The results showed that in both the long run and short run, financial technology has a significant negative impact on bank performance, indicating that fintech serves as substitutes rather than complements for Ghanaian banks. These results suggest that there must be a critical review on the interoperability policy in Ghana and that banks should take advantage of the financial technology to increase profit. Originality/value Based on the authors’ study, no empirical work has been extensively done in the Ghanaian context by examining how financial technology serves as either a complement or substitute for domestic banking institutions. This paper focuses on exploring the key definition of financial technology in Ghana and how transactions through these media are affecting or improving the performance of banks.

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The Effect of Financial Technology Investment Level on European Banks’ Profitability

Cited by 38 publications

References 51 publications

The Impact of Education and Technology on Sustainability and Profitability in the Banking Sector

The Impact of Education and Technology on Sustainability and Profitability in the Banking Sector

Digital innovation and de‐branching in the banking industry: Customer perception and satisfaction

Is financial technology a complement or substitute for domestic financial institutions in Ghana?

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