Cashless Payments and Banking Performances: A Study of Local Commercial Banks in Malaysia

Lu, Ming-Pey

doi:10.33736/ijbs.4842.2022

Cited by 3 publications

(6 citation statements)

References 20 publications

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“…These findings are confirmed by Nikabadi and Mousavi (2016). In contrast, Lu (2022) shows that cashless payment systems have no obvious effect over time on how efficiently banks operate.…”

Section: Resultsmentioning

confidence: 73%

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The impact of digitalization on the banking sector: Evidence from fintech countries

Bousrih

2023

5002

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Banking services are now branded and are provided in distinct ways. It has been proven that the development of new financial services and products substantially impacts bank performance. This paper investigates the effect of e-banking services on the performance of banks before the pandemic. The study looks at a sample of 24 nations, including leading fintech nations. Data from 2012 to 2019 was gathered from the World Development Indicators and the Bank for International Settlements (BIS) databases. The findings show a significant positive correlation between cashless payments and banks' ROA. The performance of a bank is significantly impacted by mobile subscribers. In fact, customers are willing to use mobile transactions in place of traditional bank accounts. Banks' ability to generate revenue from assets (in the form of credits) is consequently restricted, which has an impact on their ability to earn a profit. The research suggests a range of policy implications and policy interconnections between digital financial services, banking stability, and efficiency. The banking sector has become more digitalized after the recent pandemic. To date, there is very little literature that has focused on the effect of digitalization on the banking sector before the Covid-19 crisis. The current study contributes to the literature by providing an overview of the relationship between the banking industry and digitalization before the latest pandemic for some leading fintech countries. This research will contribute to later comparisons between the different situations of the banking sector pre- and post-pandemic.

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“…These findings are confirmed by Nikabadi and Mousavi (2016). In contrast, Lu (2022) shows that cashless payment systems have no obvious effect over time on how efficiently banks operate.…”

Section: Resultsmentioning

confidence: 73%

“…Policymakers should be inspired by fintech businesses to provide more convenient services and more individualized consumer experiences. In a society without cash, cooperation between these two parties can result in a win-win situation, (Lu, 2022).…”

Section: Discussionmentioning

confidence: 99%

The impact of digitalization on the banking sector: Evidence from fintech countries

Bousrih

2023

5002

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“…Li et al 2023;Zhao et al 2022). A solitary paper used mixed methods to combine linear and non-linear approaches (Lu 2022;Chhaidar et al 2022) (Table 5 and Figure 4). Total:…”

Section: Resultsmentioning

confidence: 99%

“…The ATM ratio is a component of the technological infrastructure assets and signifies investments in Information Technology (IT) (Del Gaudio et al 2021). The SLR uncovered that four articles (Adalessossi 2023;Lu 2022;Del Gaudio et al 2021;Bashayreh and Wadi 2021) had utilized the ATM ratio to indicate Fintech at the bank level. Two studies (Del Gaudio et al 2021;Bashayreh and Wadi 2021) showed that a higher ATM ratio contributed to enhanced bank profitability, whereas the other two studies (Adalessossi 2023;Lu 2022) observed the contrary effect.…”

Section: Measuring Fintech Using Bank-level Datamentioning

confidence: 99%

“…Electronic payments are the third subtheme. Numerous contemporary research endeavors have focused on electronic payment methods as a means to enhance service quality and subsequently improve the financial performance of banking institutions (Kharrat et al 2023;Adalessossi 2023;Lu 2022;Awwad 2021). The articles above demonstrated that electronic payments significantly bolster profitability.…”

Section: Measuring Fintech Using Bank-level Datamentioning

confidence: 99%

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A Systematic Review of Fintech and Banking Profitability

Tarawneh,

Abdul-Rahman,

Mohd Amin

et al. 2024

IJFS

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Financial technology (Fintech), characterized as technology-driven financial innovation, has catalyzed significant economic growth across various nations. The Fintech sector has experienced remarkable expansion, boasting vast user numbers. While regions like the United States and China have seen accelerated Fintech development, other areas like Western Europe, Eastern Asia, and the Middle East continue their evolutionary journey with this technology. Our research offers a systematic review of contemporary literature, probing the crucial Fintech metrics affecting bank profitability and identifying the primary factors influencing these profits. This review introduces a holistic methodology for quantitatively assessing the evolving Fintech measures and their interplay with determinants of bank profitability. According to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, our study evaluates 28 articles from Web of Science and Scopus databases from August 2019 to August 2023. Findings delineate two principal themes: Fintech measures at both bank and country levels and determinants of profitability, encompassing bank-specific and country-specific variables. We utilize the Theories, Constructs, Contexts, and Methods framework to chart the course for future research. Our insights bear significance for theoretical progression and practical implementation, offering academics, banking professionals, and policymakers a nuanced comprehension of the nexus between Fintech and bank profitability.

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Bank FinTech and bank performance: evidence from an emerging market

Kayed,

Alta’any,

Meqbel

et al. 2024

JFRA

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Purpose This study aims to explore the effects of internal financial technology (FinTech) integration within Jordanian banks on their performance metrics, specifically focusing on profitability, risk-taking and stock returns. Design/methodology/approach Using panel data analysis, this study investigates the financial performance of 13 listed commercial banks in Jordan over a decade, from 2010 to 2019, to examine the hypothesized impacts of bank FinTech developments. In addition, several robustness tests addressing potential issues of endogeneity and autocorrelation are conducted to enhance the reliability of the results. Findings The results reveal that the bank FinTech development significantly enhances bank profitability and inversely affects risk-taking levels, indicating a substantial and positive impact on financial performance and stability. However, the results suggest no significant evidence of the effect of bank FinTech development on stock return. Practical implications The findings advocate for Jordanian commercial banks to continue and expand their investment in FinTech innovations, highlighting the crucial role these technologies play in enhancing financial performance and reducing bank risks. Additionally, these findings suggest that regulatory bodies and policymakers should develop and enhance institutional and regulatory environments to support and guide the FinTech evolution within the banking sector. Originality/value This study sheds light on the relatively under-researched area of internal bank FinTech. It provides critical insights into how FinTech integration within banks contributes to their profitability and stability, offering another perspective that enriches the FinTech literature. This contribution is essential for devising future strategies, developing theoretical frameworks and informing policy decisions in the FinTech domain.

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Cashless Payments and Banking Performances: A Study of Local Commercial Banks in Malaysia

Cited by 3 publications

References 20 publications

The impact of digitalization on the banking sector: Evidence from fintech countries

The impact of digitalization on the banking sector: Evidence from fintech countries

A Systematic Review of Fintech and Banking Profitability

Bank FinTech and bank performance: evidence from an emerging market

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