Does FinTech adoption improve bank performance?

Wei Wang, Fernando F Moreira*, Yiteng Liang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

In this paper, we estimate the effect of FinTech activities on bank performance by using data on 355 American banks from 2010 to 2020. Our results show that FinTech plays a significant role in promoting bank performance. Bank performance can be improved by 0.30% when FinTech level is improved by one unit. We also find that the impact of FinTech on bank performance is heterogeneous in terms of bank size and chartered membership. In particular, the influence of FinTech on the leading banks and the State-chartered non-member banks are more significant than on small and medium banks. Thirdly, the development of bank financial technology in every region of the United States is uneven. In addition, we put forward policy suggestions on how FinTech can promote bank performance through four aspects.
Original languageEnglish
Pages (from-to)1-28
Number of pages28
JournalInternational Journal of Monetary Economics and Finance
Publication statusPublished - 25 Mar 2024

Keywords / Materials (for Non-textual outputs)

  • FinTech
  • bank performance
  • commercial banks
  • heterogeneous impact
  • bank size
  • chartered membership
  • American banks
  • sysGMM
  • fixed effect
  • Ordinary Least Squares


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