The impact of digital finance on financial efficiency

Wang, Qian; Yang, Jinbao; Chiu, Yung‐ho; Lin, Tai Yu

doi:10.1002/mde.3168

Cited by 61 publications

(26 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Their study results also reveal that banks in China are better in efficiency than banks in ASEAN countries. The importance of the spatial aspect is also explained by Wang et al (2020) in their research. He also explained the importance of the spatial aspect in influencing the level of banking efficiency.…”

Section: B Two Stage Dea and Tobit Regressionmentioning

confidence: 94%

“…Aside from affecting banking efficiency, digital banking also positively reshapes efforts to encourage financial inclusion, such as the results of a study conducted by Ozili (2018). Further, a recent study from Wang et al (2020) adopts DEA to study banking data in China and based on spatial data between provinces show that digital finance has slightly increased the efficiency of the financial sector but has a significantly different impact on each province in China. It reveals that the spatial factor is quite an essential factor in determining the efficiency of the banking sector.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Discussion on Banking Efficiency and Determinants in the Digital Finance Environment - Evidence in Taiwan

2022

IJB

View full text Add to dashboard Cite

This study aims to examine the determinants of banking efficiency in the digital finance environment using data from 35 banks in Taiwan. We use a two-stage DEA model to measure service penetration efficiency and profit creation efficiency. Then, we adopt Tobit regression to evaluate how the key factors affect banking efficiency. Our results show that 13 banks (out of 20 high profit-creating banks) are profit creators but not service penetrators, suggesting that financial inclusion can generate profits, but it is not a necessity. Although IT infrastructure of ATMs and e-banking plays a crucial role in fostering financial inclusion, ATMs are still the backbone of efficient banking, while digital banking in Taiwan is merely a strategic necessity rather than strategic advantage. Further, although financial holding banks are more efficient than their nonfinancial holding counterparts, our research suggests that banks should still specialize in a few products rather than diversify too widely.

show abstract

Section: B Two Stage Dea and Tobit Regressionmentioning

confidence: 94%

Section: Introductionmentioning

confidence: 99%

Discussion on Banking Efficiency and Determinants in the Digital Finance Environment - Evidence in Taiwan

2022

IJB

View full text Add to dashboard Cite

show abstract

“…These studies show that digital finance has a positive effect on financial stability through greater financial inclusion (see Ozili, 2018;Siddik and Kabiraj, 2020). Other studies show that digital finance improves access to finance (see Bollaert et al, 2021;Creehan, 2019), enhances the efficiency of the financial sector (see Wang et al, 2020), and enhances the functioning of capital markets (see Wales, 2015). There is evidence that digital finance can help the economy recover quickly from a recession caused by a financial crisis or a health pandemic (see Arner et al, 2020;Curran, 2020), and it can support climate change mitigation efforts (see Puschmann et al, 2020;Tao et al, 2022).…”

Section: Review Of Post-2010 Digital Finance Researcha Concise Summarymentioning

confidence: 96%

“…Four, digital finance is important because it allow providers of finance to focus on improving the efficiency of their financial product and service offering rather than spending too much time in resolving soft issues e.g. human-side issues (Wang et al, 2020). Five, digital finance is important because it can increase financial inclusion by bringing unbanked adults into the formal financial sector so that they can have access to finance (Ozili, 2018;Durai and Stella, 2019;Ozili, 2021c).…”

Section: Importance Of Digital Financementioning

confidence: 99%

Digital finance research and developments around the World: a literature review

Ozili¹

2022

IJBFMI

View full text Add to dashboard Cite

This paper presents a concise review of the existing digital finance research in the literature, and highlight some of the developments in digital finance around the world. The paper reached several conclusions. Firstly, it showed that digital finance has become an important part of modern finance and the major application of digital finance can be found in Fintech, embedded finance, open banking and decentralized finance, central bank digital currencies, among others. Secondly, it identified some international determinants of digital finance which includes the need for efficiency in financial services delivery, the need to achieve the United Nations sustainable development goals using existing digital technologies, the need to increase financial inclusion through digital financial inclusion and the need for efficient payments and payment settlement finality. The paper also finds that digital finance research is growing fast, and recent studies have investigated contemporary issues in digital finance that are relevant for policy and practice. Regarding the digital finance developments around the world, the paper shows that the Fintech and mobile money industries are the largest beneficiary of investments in digital finance with the total number of users of mobile money services surpassing 1 billion globally. Also, the paper predicts that the future of digital finance is to create a digital environment that permits the offering of all kinds of financial product and services that can be customized and personalized to meet the unique needs of all users on a single digital platform and without requiring any form of human assistance or intermediary. The paper then suggest some areas for future research which include the need for more research on how regulators can keep pace with emerging digital finance transformation, the need for more research on user information security and compliance, the need for more research on how to deal with bias caused by bad data, the need for more research on how to deal with algorithmic bias, and the need for more research on how to combine a risk-conscious culture with a higher risk appetite for digital finance transformation.

show abstract

“…However, in case of this approach state platforms will significantly stand behind private ecosystems by its functional and technological state. Besides, there will be duplicating of functions by a number of ecosystems [19].…”

Section: Fig 2 Elements Of Digital Financial Ecosystemmentioning

confidence: 99%

Peculiarities of development of digital financial ecosystem

et al. 2021

View full text Add to dashboard Cite

The development of information society based on creating digital information channels fosters the expansion of virtual interaction of the participants of social relations. It gives rise to technological transformation of financial infrastructure and fosters related changes in other spheres of economy and social life. This research is aimed at finding out peculiarities of forming and developing digital financial microsystems and determining possible scenarios of the development of the Russian national financial ecosystem. The analysis of the statistical data has shown that developing digital technologies leads to the transformation of financial services consumer behaviour. They move from off-line environment with cash payments to the on-line service with non-cash settlements predominance and distant interaction. The trust in fintech-companies and digital financial services is constantly increasing. The caried-out analysis has shown that digitalization of financial sector increases its financial accessibility and fosters poverty reduction (Wang, Yang, Chiu & Lin, 2020) and provides economic growth (Siddik & Kabiraj, 2020). It forms the basis for the transformation of financial architecture and the expansion of digital financial ecosystems in Russia. On the basis of world experience as well as Russian practice, the authors determined the elements and principles of digital financial ecosystem development, identified types of forming and levels of ecosystems functioning.The authors considered two variants of forming the national digital financial ecosystem that differ in the form of interaction of state and private ecosystems functioning. The authors considered two variants of forming the national digital financial ecosystem that differ in the form of interaction of state and private ecosystems. The obtained conclusions are important for making project decisions by the authorities, financial organizations and technological companies.

show abstract

The impact of digital finance on financial efficiency

Cited by 61 publications

References 38 publications

Discussion on Banking Efficiency and Determinants in the Digital Finance Environment - Evidence in Taiwan

Discussion on Banking Efficiency and Determinants in the Digital Finance Environment - Evidence in Taiwan

Digital finance research and developments around the World: a literature review

Peculiarities of development of digital financial ecosystem

Contact Info

Product

Resources

About