Fintech renaissance: powering efficiency in Asian banking through country competitiveness

The objective of the study is to examine Fintech innovations that boost bank efficiency while controlling for country competitiveness in Asia. The study employs cross-country data from a sample of 92 commercial banks in Asia and uses data envelopment analysis (DEA) to analyze the efficiency of banks...

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Main Authors: Chowdhury, Mozaffar Alam, Ni, Soh Wei, Abdul Rahim, Norhuda, Johari, Jalila
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2024
Online Access:http://psasir.upm.edu.my/id/eprint/114392/
http://psasir.upm.edu.my/id/eprint/114392/1/114392.pdf
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author Chowdhury, Mozaffar Alam
Ni, Soh Wei
Abdul Rahim, Norhuda
Johari, Jalila
author_facet Chowdhury, Mozaffar Alam
Ni, Soh Wei
Abdul Rahim, Norhuda
Johari, Jalila
author_sort Chowdhury, Mozaffar Alam
building UPM Institutional Repository
collection Online Access
description The objective of the study is to examine Fintech innovations that boost bank efficiency while controlling for country competitiveness in Asia. The study employs cross-country data from a sample of 92 commercial banks in Asia and uses data envelopment analysis (DEA) to analyze the efficiency of banks from 2016 to 2022. The panel data regression utilized a fixed-effect model, which was run after a diagnostic check. The validated data satisfied the criteria for stationary, serial autocorrelation, heteroscedasticity, homogeneity, and multicollinearity. The findings show that Fintech significantly improves bank efficiency with the mediating effect of country competitiveness. Additionally, the results indicate that Fintech has a positive correlation with bank efficiency in developing countries. In developed countries, the correlation between Fintech and bank efficiency is also positive. In developing countries, the Fintech effect is greater when country competitiveness is considered, and the effect is much more pronounced in terms of magnitude due to competitiveness. The study contributes to the literature on the relationships between Fintech and bank efficiency by using country competitiveness as a mediating factor. The implication is derived from the empirical evidence that country competitiveness provides a supportive environment for enhancing efficiency in Asian banks.
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spelling upm-1143922025-01-20T00:50:06Z http://psasir.upm.edu.my/id/eprint/114392/ Fintech renaissance: powering efficiency in Asian banking through country competitiveness Chowdhury, Mozaffar Alam Ni, Soh Wei Abdul Rahim, Norhuda Johari, Jalila The objective of the study is to examine Fintech innovations that boost bank efficiency while controlling for country competitiveness in Asia. The study employs cross-country data from a sample of 92 commercial banks in Asia and uses data envelopment analysis (DEA) to analyze the efficiency of banks from 2016 to 2022. The panel data regression utilized a fixed-effect model, which was run after a diagnostic check. The validated data satisfied the criteria for stationary, serial autocorrelation, heteroscedasticity, homogeneity, and multicollinearity. The findings show that Fintech significantly improves bank efficiency with the mediating effect of country competitiveness. Additionally, the results indicate that Fintech has a positive correlation with bank efficiency in developing countries. In developed countries, the correlation between Fintech and bank efficiency is also positive. In developing countries, the Fintech effect is greater when country competitiveness is considered, and the effect is much more pronounced in terms of magnitude due to competitiveness. The study contributes to the literature on the relationships between Fintech and bank efficiency by using country competitiveness as a mediating factor. The implication is derived from the empirical evidence that country competitiveness provides a supportive environment for enhancing efficiency in Asian banks. Penerbit Universiti Kebangsaan Malaysia 2024 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/114392/1/114392.pdf Chowdhury, Mozaffar Alam and Ni, Soh Wei and Abdul Rahim, Norhuda and Johari, Jalila (2024) Fintech renaissance: powering efficiency in Asian banking through country competitiveness. Jurnal Ekonomi Malaysia, 58 (3). pp. 1-16. ISSN 0127-1962; eISSN: 2716-6058 https://www.ukm.my/jem/article/fintech-renaissance-powering-efficiency-in-asian-banking-through-country-competitiveness/ 10.17576/JEM-2024-5803-6
spellingShingle Chowdhury, Mozaffar Alam
Ni, Soh Wei
Abdul Rahim, Norhuda
Johari, Jalila
Fintech renaissance: powering efficiency in Asian banking through country competitiveness
title Fintech renaissance: powering efficiency in Asian banking through country competitiveness
title_full Fintech renaissance: powering efficiency in Asian banking through country competitiveness
title_fullStr Fintech renaissance: powering efficiency in Asian banking through country competitiveness
title_full_unstemmed Fintech renaissance: powering efficiency in Asian banking through country competitiveness
title_short Fintech renaissance: powering efficiency in Asian banking through country competitiveness
title_sort fintech renaissance: powering efficiency in asian banking through country competitiveness
url http://psasir.upm.edu.my/id/eprint/114392/
http://psasir.upm.edu.my/id/eprint/114392/
http://psasir.upm.edu.my/id/eprint/114392/
http://psasir.upm.edu.my/id/eprint/114392/1/114392.pdf