{"title":"The impact of FinTech firms on bank performance: evidence from the UK","authors":"Apostolos Dasilas, Goran Karanović","doi":"10.1108/emjb-04-2023-0099","DOIUrl":null,"url":null,"abstract":"Purpose This study examines the impact of financial technology (FinTech) on bank performance employing data from the United Kingdom (UK) banking sector for a period spanning from 2010 to 2019. Design/methodology/approach This study employs static as well as dynamic panel data regression analysis to assess the impact of FinTech on the profitability of UK banks. Findings The results show that FinTech firms positively impact bank performance. For every new FinTech firm introduced into the UK market, net interest margin (NIM) and yield on earning assets (YEA) increase by 6.385 and 3.192% of their sample means, respectively. Practical implications Cooperating with FinTech firms, UK banks can broaden their portfolio of financial services offered to their customers and optimize their profit margins. Originality/value This is the first study that examines the impact of FinTech on bank profitability employing data from a developed market.","PeriodicalId":46475,"journal":{"name":"EuroMed Journal of Business","volume":null,"pages":null},"PeriodicalIF":3.8000,"publicationDate":"2023-09-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"EuroMed Journal of Business","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/emjb-04-2023-0099","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose This study examines the impact of financial technology (FinTech) on bank performance employing data from the United Kingdom (UK) banking sector for a period spanning from 2010 to 2019. Design/methodology/approach This study employs static as well as dynamic panel data regression analysis to assess the impact of FinTech on the profitability of UK banks. Findings The results show that FinTech firms positively impact bank performance. For every new FinTech firm introduced into the UK market, net interest margin (NIM) and yield on earning assets (YEA) increase by 6.385 and 3.192% of their sample means, respectively. Practical implications Cooperating with FinTech firms, UK banks can broaden their portfolio of financial services offered to their customers and optimize their profit margins. Originality/value This is the first study that examines the impact of FinTech on bank profitability employing data from a developed market.
期刊介绍：
The EuroMed Journal of Business (EMJB) is the premier publication facilitating dialogue among researchers from Europe and the Mediterranean. It plays a vital role in generating and disseminating knowledge about various business environments and trends in this region. By offering an up-to-date overview of emerging business practices in specific countries, EMJB serves as a valuable resource for its readers.
As the official journal of the EuroMed Academy of Business, EMJB is committed to reflecting the economic growth seen in the European-Mediterranean region. It aims to be a focused and targeted business journal, highlighting environmental opportunities, threats, and marketplace developments in the area. Through its efforts, EMJB promotes collaboration and open dialogue among diverse research cultures and practices.
EMJB serves as a platform for debating and disseminating research findings, new research areas and techniques, conceptual developments, and practical applications across various business segments. It seeks to provide a forum for discussing new ideas in business, including theory, practice, and the issues that arise within the field.
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