Impact of Fintech on Bank Risk-Taking: Evidence from China

Deng, Liurui; Lv, Yongbin; Liu, Ye; Zhao, Yiwen

doi:10.3390/risks9050099

Cited by 54 publications

(49 citation statements)

References 18 publications

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“…Nevertheless, the risk component of innovation, the essence, and prospects of risk management are not defined and are poorly studied. Selected issues related to the risks of innovation are discussed in the works of (Deng et al 2021;Kliber et al 2021;Manuylenko et al 2021;Xie 2021).…”

Section: Innovative Activities Management In Entrepreneurship In the Interests Of Sustainable Developmentmentioning

confidence: 99%

Managing the Risks of Innovative Activities Focused on the Consumer Market: Competitiveness vs. Corporate Responsibility

Ragulina

Prokofyev

Bratarchuk

2021

Risks

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Purpose This paper aims to study the specifics of managing the risks of innovative activities during the implementation of the Sustainable Development Goals (SDGs) in entrepreneurship that is focused on the consumer market in countries with different levels of income. Design/methodology/approach The research is performed with the help of regression analysis (one-factor and multiple simple linear regression). Two samples are created for this: (1) countries with high income and (2) upper middle income and countries with lower middle income, according to the classification of World Bank GNI per capita in current USD (Atlas method). Findings It is determined that priorities of the consumer market (demand) are differentiated among countries with different levels of income. In countries with high income and upper middle income, corporate social responsibility does not determine the quality of life. Only competitiveness is a milestone during the implementation of the SDGs in entrepreneurship activities focused on the consumer market. In countries with lower middle income, neither corporate responsibility nor competitiveness is the decisive factor in managing the risks of innovative activities focused on the consumer market. Originality The originality of this research consists in a new view of competitiveness and corporate responsibility from the positions of their influence on the implementation of the SDGs entrepreneurship focused on the consumer market. Social implications Due to the practical implementation of the offered recommendations for corporate management of improving the practice of managing the risks of innovative activities focused on the consumer market, the Quality of Life Index will grow by 44.95% in countries with high income and upper middle income and by 98.69% in countries with lower middle income.

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Section: Innovative Activities Management In Entrepreneurship In the Interests Of Sustainable Developmentmentioning

confidence: 99%

Managing the Risks of Innovative Activities Focused on the Consumer Market: Competitiveness vs. Corporate Responsibility

Ragulina

Prokofyev

Bratarchuk

2021

Risks

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“…The aim of the study is to explore the impact of emerging fintech on bank risk-taking behavior and how the banks operating efficiency is affected by the fintech industry. There is limited literature available on how bank risk-taking behavior is affected by adopting fintech products [5,6], and recent literature mainly focuses on the impact of fintech on efficiency [7]. However, this study identifies the gap and explores the mediating effect of a bank's operating efficiency and explores whether the bank's risk-taking behavior increases or decreases by adopting fintech products and services and how it affects bank efficiency in emerging countries.…”

Section: Introductionmentioning

confidence: 98%

“…To remain competitive, banks, along with traditional banking, adopt fintech products to provide more efficient services to their customers to satisfy their needs. There is diverse opinion in the literature on the impact of fintech products used for the reduction of bank's risk-taking behavior by enhancing bank's operating efficiency [3][4][5]. Wang, Liu, and Luo [6] concluded that fintech plays a significant role to alter a bank's risk-taking behavior to achieve the bank's corporate objectives and maintain customers by providing quality services on time and reducing costs.…”

Section: Introductionmentioning

confidence: 99%

“…Banks adopt fintech products and services to increase their operating efficiency as it lowers the transaction cost and operating expenses and lowers the bank's risk-taking. However, on the other side, the development of fintech with its technological advancement increases the competition for banks by providing cost-efficient products and services to their customers that in turn erodes the profit of banks and increases the risk-taking level of banks [5].…”

Section: Introductionmentioning

confidence: 99%

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The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency

Sajid

Ayub

Malik

et al. 2023

Human Behavior and Emerging Technologies

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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.

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“…They only promote financial inclusion and financial stability when they serve public interest. Fredman and Phillips (2022), Buckley et al (2019), FSB (2022a), Deng et al (2021) and Petrou (2018) reject the idea that digital financial innovation naturally improves financial inclusion and financial stability. They reject the idea because they believe that it underestimates the hidden risks inherent in digital financial innovation that can hinder financial stability and financial inclusion.…”

Section: Introductionmentioning

confidence: 99%

CBDC, Fintech and cryptocurrency for financial inclusion and financial stability

Ozili¹

2022

DPRG

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Purpose The purpose of this study is to discuss the role of central bank digital currency (CBDC), Fintech and cryptocurrency for financial inclusion and financial stability. Design/methodology/approach This study used critical discourse analysis to identify the benefits and risks of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability. Findings Fintech, CBDC and cryptocurrency can increase financial inclusion by providing an alternative channel through which unbanked adults can access formal financial services. CBDC and Fintech services have the potential to preserve financial stability, while cryptocurrency presents financial stability risks that can be mitigated through effective regulation. This paper also identified some problems of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability. This paper offered some insight about the future of financial inclusion and the future of financial stability. Practical implications Although CBDC, Fintech or cryptocurrency can extend financial services to unbanked adults and offer cost-efficient advantages, there are risk considerations that need to be taken into account when using CBDC, Fintech and cryptocurrency to increase financial inclusion and to preserve financial stability. Originality/value The literature has not identified the combined role of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability. To the best of the author’s knowledge, this paper is the first paper to assess the combined role of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability.

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Impact of Fintech on Bank Risk-Taking: Evidence from China

Cited by 54 publications

References 18 publications

Managing the Risks of Innovative Activities Focused on the Consumer Market: Competitiveness vs. Corporate Responsibility

Managing the Risks of Innovative Activities Focused on the Consumer Market: Competitiveness vs. Corporate Responsibility

The Role of Fintech on Bank Risk-Taking: Mediating Role of Bank’s Operating Efficiency

CBDC, Fintech and cryptocurrency for financial inclusion and financial stability

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