Does Financial Technology Adoption Influence Bank’s Financial Performance: The Case of Jordan

This research will examine the impact of the adoption of financial technology on conventional banks’ financial performances. The research will place emphasis on the listed commercial banks at Amman Stock Exchange—ASE, using financial data for the period 2012–2020. The main study tool was a questionn...

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Bibliographic Details
Published in:Journal of risk and financial management 2023-09, Vol.16 (9), p.413
Main Authors: Kaddumi, Thair A., Baker, Hafez, Nassar, Mahmoud Daoud, A-Kilani, Qais
Format: Article
Language:English
Subjects:
Bank technology
Banking industry
Business metrics
Business models
Commercial banks
Cost reduction
Disruptive innovation
Efficiency
Financial inclusion
Financial services
Financial statements
Foreign banks
Hypotheses
Information technology
Investments
Islamic financing
Literature reviews
Mobile commerce
Startups
Technology adoption
Technology application
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Summary:This research will examine the impact of the adoption of financial technology on conventional banks’ financial performances. The research will place emphasis on the listed commercial banks at Amman Stock Exchange—ASE, using financial data for the period 2012–2020. The main study tool was a questionnaire that focuses on three main dimensions: financial inclusion—(FI), alternative payment methods—(APMs) and automation—(Auto). A total of 115 questionnaires were distributed to all commercial banks listed at Amman Stock Exchange—ASE. Multivariate regression analysis was employed to test the impact of the FinTech dimension as a proxy for independent variables on Jordanian commercial bank’s financial performance as a proxy for dependent variables. Based on the analysis results, the study concludes that all three FinTech dimensions: FI, APMs and Auto. reflected a positive significant impact on Jordanian commercial bank’s financial performance indicators (total deposit, total loans and net profit margin). Therefore, banks in general should invest more and more into financial technology tools and applications, in order to recruit potential clients and retain their current clients, to be able to sustain under fierce competition within the banking sector.
ISSN:1911-8074
1911-8066
1911-8074
DOI:10.3390/jrfm16090413