An econometric understanding of Fintech and operating performance

IF 3.6 Q1 BUSINESS, FINANCE Review of Accounting and Finance Pub Date : 2023-05-05 DOI:10.1108/raf-10-2022-0290
Faten Ben Bouheni, Manish Tewari, Mouwafac Sidaoui, Amir Hasnaoui
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引用次数: 3

Abstract

Purpose This study aims to develop a unique methodology to construct a bank’s financial technology (Fintech) score, which captures the degree of digitalization of a bank’s operations. Using the Fintech score as the proxy, this study investigates the effect of Fintech on the operating performance of the top largest Islamic bank. Design/methodology/approach The methodology used measures the link between the degree of digitization of a bank and its operational performance. This study applies the three-degree polynomial of regression to the largest Islamic bank in which the explanatory variable is the natural logarithm of Fintech score, and the response variable is common operating performance measure. To check the sensitivity of the estimates to the sample size and assumptions’ violation, this study has applied Bootstrapping and Bayesian processes to the three-degree polynomial regressions. Findings The study estimates from 2007 to 2021 show that the relationship between the operating performance of the Islamic banks and the Fintech is nonlinear and strongly significant: operating returns increase with the increasing level of Fintech, whereas the operating returns decrease with the increasing Fintech variance. At an aggregate level, this study attributes a significant rise in internet coverage to the emergence of Fintech in the Middle East region. Originality/value This study constructs an implicit measure of Fintech that measures the adoption of Fintech by the bank and, consequently, offers the technology to their customers for higher use satisfaction. This study finds that Fintech is linked to the operating performance in a nonlinear fashion, in which Fintech and Fintech variance have the opposite effect on operating performance: Fintech increases the operating profitability, whereas Fintech variance decreases the operating profitability of a bank.
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金融科技与经营业绩的计量经济学理解
目的本研究旨在开发一种独特的方法来构建银行的金融技术(Fintech)评分,该评分反映了银行运营的数字化程度。本研究以金融科技得分为指标,调查了金融科技对伊斯兰最大银行运营绩效的影响。设计/方法论/方法论所使用的方法论衡量银行数字化程度与其运营绩效之间的联系。本研究将三次多项式回归应用于最大的伊斯兰银行,其中解释变量是金融科技得分的自然对数,响应变量是常见的经营业绩指标。为了检查估计对样本量和假设违反的敏感性,本研究将Bootstrapping和贝叶斯过程应用于三次多项式回归。研究结果2007年至2021年的研究估计表明,伊斯兰银行的经营业绩与金融科技之间的关系是非线性的,并且非常显著:经营回报率随着金融科技水平的提高而增加,而经营回报率则随着金融科技方差的增加而降低。在总体层面上,本研究将互联网覆盖率的显著上升归因于中东地区金融科技的出现。独创性/价值本研究构建了一个金融科技的隐含衡量标准,衡量银行对金融科技的采用情况,从而为客户提供更高的使用满意度。本研究发现,金融科技与经营业绩呈非线性关系,其中金融科技和金融科技方差对经营业绩的影响相反:金融科技提高了银行的经营盈利能力,而金融科技方差降低了银行的运营盈利能力。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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