Enhancing financial performance by applying knowledge management and new financial technologies in the banking industry

Abstract

Considering the mediating role of the new financial technologies, this paper aims to study the relationship between the use of knowledge management (KM) and the enhancing financial performance of banks in the banking industry of Iran. In terms of purpose, the paper was applied and correlational one in terms of descriptive method. The statistical sample was made up of 180 senior and middle managers of active banks in Iran with at least 5 years of work experience (tenure) in KM and new financial technologies. Moreover, A questionnaire was applied to collect research data, and the validity and reliability were confirmed through CVR and Cronbach's alpha indices. Upon collecting the data to test the research hypotheses, the structural equation modeling method was applied in the SmartPLS. The results showed that KM holds a positive and significant effect on enhancing financial performance and 0.682 directly predicts the changes related to the financial performance of the studied banks. Furthermore, further analysis of the results showed that KM through modern financial technologies holds a positive and significant effect on the financial performance of active banks in the banking industry of Iran. Consequently, applying KM dimensions (use of knowledge, acquisition of knowledge, and integration of knowledge) along with modern financial technologies - such as cloud computing technology, smart contracts, and artificial intelligence – is likely to enhance the financial performance of banks and provide sustainable profitability.

Effect of Knowledge Application and Knowledge Storage on Bank Performance Through Fintech Innovation

“…Nevertheless, when considering KA and BF, KA within banks refers to the utilization of information, expertise, and technology to enhance operational efficiency, customer service, and overall performance. Effective KA can lead to improved processes, better risk management, enhanced customer experiences, and increased profitability, thereby positively impacting BP (Osahon & 2022;Safaee & Yadegari, 2022). When banks effectively leverage knowledge and apply it in their operations, it can result in better decision-making, innovation, and competitive advantage.…”

“…KA enables banks to navigate regulatory challenges, assess risks, and integrate FI into their existing operations. FI often relies on advanced technologies and data analytics, which require a strong knowledge base and application capabilities within banks (Safaee & Yadegari, 2022).…”

“…This knowledge can be used to identify opportunities for FinTech integration, evaluate potential solutions, and make informed decisions regarding FinTech adoption. Effective KS ensures that banks can leverage their internal knowledge assets and external information to drive FI and stay competitive in the rapidly evolving financial landscape (Safaee & Yadegari, 2022;Alaassar et al, 2022).…”