Do financial technology firms influence bank performance?

By D. Phan, Paresh Kumar Narayan, R. Eki Rahman, Akhis R. Hutabarat. Pacific-Basin Finance Journal, 2020

371 citations recorded by the source corpus.

Abstract We develop a hypothesis that the growth of financial technology (FinTech) negatively influences bank performance. We study the Indonesia market, where FinTech growth has been impressive. Using a sample of 41 banks and data on FinTech firms, we show that the growth of FinTech firms negatively influences bank performance. We test our hypothesis through multiple additional tests and robustness tests, such as sensitivity to bank characteristics, effects of the Global Financial Crisis, and the use of alternative estimators. Our main conclusion that FinTech negatively predicts bank performance holds.

Subfields: Economics and Econometrics, Finance, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/203a42cc493060ddd072eecb1e558ff884a34dae

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1. Xuyuan You
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Citations in the corpus

• FinTech and commercial banks' performance in China: A leap forward or survival of the fittest? (2021, background): “FTPs and their impact on bank performance have been the focus of many researchers (e.g., Odawa, 2016; Phan et al., 2020; Rega, 2017; Wang et al., 2020).”