The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency
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 beh...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Hindawi-Wiley
2023-01-01
|
| Series: | Human Behavior and Emerging Technologies |
| Online Access: | http://dx.doi.org/10.1155/2023/7059307 |
| _version_ | 1811165501503569920 |
|---|---|
| author | Rabbia Sajid Huma Ayub Bushra F. Malik Abida Ellahi |
| author_facet | Rabbia Sajid Huma Ayub Bushra F. Malik Abida Ellahi |
| author_sort | Rabbia Sajid |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-04-10T15:38:02Z |
| format | Article |
| id | doaj.art-a8ca29de0593481994719f3145814bd7 |
| institution | Directory Open Access Journal |
| issn | 2578-1863 |
| language | English |
| last_indexed | 2024-04-10T15:38:02Z |
| publishDate | 2023-01-01 |
| publisher | Hindawi-Wiley |
| record_format | Article |
| series | Human Behavior and Emerging Technologies |
| spelling | doaj.art-a8ca29de0593481994719f3145814bd72023-02-13T01:08:18ZengHindawi-WileyHuman Behavior and Emerging Technologies2578-18632023-01-01202310.1155/2023/7059307The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating EfficiencyRabbia Sajid0Huma Ayub1Bushra F. Malik2Abida Ellahi3Department of Business AdministrationDepartment of Business AdministrationDepartment of Business AnalyticsDepartment of Management ScienceFintech 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.http://dx.doi.org/10.1155/2023/7059307 |
| spellingShingle | Rabbia Sajid Huma Ayub Bushra F. Malik Abida Ellahi The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency Human Behavior and Emerging Technologies |
| title | The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency |
| title_full | The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency |
| title_fullStr | The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency |
| title_full_unstemmed | The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency |
| title_short | The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency |
| title_sort | role of fintech on bank risk taking mediating role of bank s operating efficiency |
| url | http://dx.doi.org/10.1155/2023/7059307 |
| work_keys_str_mv | AT rabbiasajid theroleoffintechonbankrisktakingmediatingroleofbanksoperatingefficiency AT humaayub theroleoffintechonbankrisktakingmediatingroleofbanksoperatingefficiency AT bushrafmalik theroleoffintechonbankrisktakingmediatingroleofbanksoperatingefficiency AT abidaellahi theroleoffintechonbankrisktakingmediatingroleofbanksoperatingefficiency AT rabbiasajid roleoffintechonbankrisktakingmediatingroleofbanksoperatingefficiency AT humaayub roleoffintechonbankrisktakingmediatingroleofbanksoperatingefficiency AT bushrafmalik roleoffintechonbankrisktakingmediatingroleofbanksoperatingefficiency AT abidaellahi roleoffintechonbankrisktakingmediatingroleofbanksoperatingefficiency |