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Impact of Geographic Location on Risks of Fintech as a Representative of Financial Institutions

Author

Listed:
  • Yelena Popova

    (Transport and Telecommunication Institute, Faculty of Management and Logistics, 1019 Riga, Latvia)

  • Olegs Cernisevs

    (SIA StarBridge, Research Department, 1050 Riga, Latvia)

  • Sergejs Popovs

    (Institute of Life Sciences and Technologies, Daugavpils University, 5401 Daugavpils, Latvia)

Abstract

The activities of contemporary financial institutions require significant geographic expansion. Even the increased level of industry digitalisation does not minimise the importance of the physical assets of financial institutions. The environmental factors specific to each geographic region can significantly influence the efficiency of operations of financial institutions. The goal of the article is to determine the impact of the geographic location of physical assets via environmental risks affecting the other risks of fintech as a representative of financial institutions. The impact is determined by the employment of the PLS-SEM model implemented in SmartPLS 4.0 software. The model determines the impact of environmental risks on governance risks, operational risks, human resources and safety risks, ICT risks, compliance risks, and strategic risks. These groups of risks form the latent variables, which comprise the experts’ estimation of threats and vulnerabilities impacts and their likelihoods. After testing five hypotheses, two of them were supported—environmental risks impact human resources safety risks and operational risks.

Suggested Citation

  • Yelena Popova & Olegs Cernisevs & Sergejs Popovs, 2024. "Impact of Geographic Location on Risks of Fintech as a Representative of Financial Institutions," Geographies, MDPI, vol. 4(4), pages 1-16, November.
    • Handle: RePEc:gam:jgeogr:v:4:y:2024:i:4:p:41-768:d:1528434
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    References listed on IDEAS

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