IDEAS home Printed from https://ideas.repec.org/a/sae/emffin/v23y2024i2p227-245.html
   My bibliography  Save this article

Impact of FinTech Growth on Bank Performance in GCC Region

Author

Listed:
  • Houda Litimi
  • Ahmed BenSaïda
  • Mohamed Mahees Raheem

Abstract

This article investigates the effect of financial technology (FinTech) growth on bank performance in the Gulf Cooperation Council (GCC) region. The application is conducted on a panel dataset containing annual observations of banks from 2012 to 2021 using the generalized method of moments (GMM) method. FinTech growth is set as an explanatory variable on three proxies of bank performance, namely, return on assets (ROA), return on equity (ROE), and net interest margin (NIM). Moreover, several control variables are added to the model, including bank-specific and macroeconomic variables. The results are significant as all the proxies of bank performance are negatively affected by the growth of FinTech startups. Consequently, banks are urged to proactively invest in FinTech startups and engage in partnerships to avoid the risk of disruption. JEL Codes: G21, G23, O31

Suggested Citation

  • Houda Litimi & Ahmed BenSaïda & Mohamed Mahees Raheem, 2024. "Impact of FinTech Growth on Bank Performance in GCC Region," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 23(2), pages 227-245, June.
    • Handle: RePEc:sae:emffin:v:23:y:2024:i:2:p:227-245
    DOI: 10.1177/09726527231218423
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09726527231218423
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09726527231218423?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Financial technology; bank performance; GCC countries; panel regression;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emffin:v:23:y:2024:i:2:p:227-245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ifmr.ac.in .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.