The Introduction of Financial Technologies and Bank Performance

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2020-09-04
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en
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This study examines the effect the implementation of financial technologies has on bank performance in terms of return on equity and return on assets. Furthermore it is analyzed whether it might have been advantageous to be an early adopter of either internet banking or mobile banking. This study looks at 54 of the largest commercial banks in both developed and developing countries distributed all over the world. An event study is used to indicate whether the implementation of both internet banking and mobile banking has an effect on a bank’s performance, taking into account multiple periods including lags. Results show no significant results within five years of implementation for either technology on both ROE and ROA. Furthermore, a panel data method is applied to examine the timing of adoption, while controlling for multiple bank specific as well as macroeconomic variables. Results show no indication that adopting financial technologies at an early stage increases performance in terms of ROE and ROA.
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Faculteit der Managementwetenschappen