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The Role of Fintech on Bank Risk-Taking

Mediating Role of Bank’s Operating Efficiency

Bibliographic Data

ID23039482
AuthorsRabbia Sajid (0000-0003-1833-1310, Fatima Jinnah Women University), Huma Ayub (0000-0001-8216-8242, Fatima Jinnah Women University), Bushra F Malik (0000-0001-6186-6754, Lewis University), Abida Ellahi (0000-0003-2383-852X, Abbottabad University of Science and Technology, corresponding author)
EditorsZheng Yan (0009-0007-3850-6743)
Year2023
Volume2023
Pages1-11
Publication date2023-01-30
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueHuman Behavior and Emerging Technologies (JOURNAL)
Journal identifiersISSN: 2578-1863 • E-ISSN: 2578-1863
PublisherWiley (PUBLISHER • GB)
DOI10.1155/2023/7059307
OpenAlexW4318575960
LanguageEN
Citations received4
References cited46

Fintech revolutionized the traditional banking business models in emerging countries. The effect of fintech on banks’ operating efficiency and risk-taking behavior is still inconclusive. The study is aimed at exploring the effect of fintech products on banks’ operating efficiency and risk-taking behavior. The study used a quantitative research approach by collecting secondary data from annual reports of 50 commercial banks from emerging countries, namely, China, India, Pakistan, and Bangladesh, for the period 2014 to 2021. The study used panel data for path analysis and structural equation modeling (SEM) to test the theoretical mediation model by using STATA. The results show that the fintech product reduces the bank’s risk-taking behavior by enhancing the bank’s operating efficiency. The path analysis results show that operating efficiency mediates the relationship between fintech products and bank risk-taking behavior in emerging countries. The paper offers useful recommendations for central bank and commercial bank policymakers. The study is also beneficial for commercial banks that use fintech solutions to increase operational effectiveness and reduce risk. The study is the first empirical investigation into the connection between the growth of fintech products, bank operational effectiveness, and risk-taking behavior in developing nations.

Business · Econometrics · Economics · Emerging markets · Financial system · Mediation · Operational risk · Panel data · Path analysis (statistics) · Risk management · Structural equation modeling · Computer Science · Finance · FinTech, Crowdfunding, Digital Finance · Islamic Finance and Banking Studies · Microfinance and Financial Inclusion

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Unique citing works4
Citations per year4
Citation span2025 - 2025 (1)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 2

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