Impact of business enablers on banking performance: A moderating role of Fintech
-
Received May 31, 2022;Accepted December 25, 2022;Published January 10, 2023
-
Author(s)Link to ORCID Index: https://orcid.org/0000-0002-3336-3911Link to ORCID Index: https://orcid.org/0000-0003-3171-9344Link to ORCID Index: https://orcid.org/0000-0001-9192-5639Link to ORCID Index: https://orcid.org/0000-0003-2351-8104Link to ORCID Index: https://orcid.org/0000-0002-0893-7389
-
DOIhttp://dx.doi.org/10.21511/bbs.18(1).2023.02
-
Article InfoVolume 18 2023, Issue #1, pp. 14-25
- TO CITE АНОТАЦІЯ
-
Cited by9 articlesJournal title: Insurance Markets and CompaniesArticle title: Time gap of the impact of risk insurance, life insurance and reinsurance on social progress: The case of UkraineDOI: 10.21511/ins.14(1).2023.13Volume: 14 / Issue: 1 / First page: 153 / Year: 2023Contributors: Ján Užík, Olha Yeremenko, Natalia Sidelnyk, Tetyana Koriahinа, Mykola MormulJournal title:Article title:DOI:Volume: / Issue: / First page: / Year:Contributors:Journal title: Problems and Perspectives in ManagementArticle title: Strategy formulation activities with emphasis on strategic management tools and techniques in Slovak companiesDOI: 10.21511/ppm.21(3).2023.05Volume: 21 / Issue: 3 / First page: 54 / Year: 2023Contributors: Petra Lesnikova, Jarmila Schmidtova, Izabela CichockaJournal title: Thunderbird International Business ReviewArticle title: Risks, Regulations, and Impacts of FinTech Adoption on Commercial Banks in the United States and Canada: A Comparative AnalysisDOI: 10.1002/tie.22404Volume: 66 / Issue: 6 / First page: 609 / Year: 2024Contributors: Lamia Kalai, Mohamed ToukabriJournal title: Eurasian Economic ReviewArticle title: Bank performance, capital and size: a comparative analysis in MENA and EUDOI: 10.1007/s40822-023-00248-6Volume: 13 / Issue: 3-4 / First page: 677 / Year: 2023Contributors: Marwan Al-Zoubi, Mais Sha’banJournal title: Investment Management and Financial InnovationsArticle title: Future trends in Fintech and sustainability: Empirical studyDOI: 10.21511/imfi.21(3).2024.05Volume: 21 / Issue: 3 / First page: 51 / Year: 2024Contributors: Amer Mohd Al_hazimeh, Raed Walid Al-Smadi, Arkan Walid Al-SmadiJournal title:Article title:DOI:Volume: / Issue: / First page: / Year:Contributors:Journal title: Problems and Perspectives in ManagementArticle title: Factors influencing attitudes toward aging workforce: Evidence from college students in Southern ThailandDOI: 10.21511/ppm.22(1).2024.15Volume: 22 / Issue: 1 / First page: 170 / Year: 2024Contributors: Medina Adulyarat, Najmee Adulyarat, Long Kim, Laura Poskin, Suchita ManajitJournal title: EnergiesArticle title: Energy Transformation in Municipal Areas—Key Datasets and Their Influence on Process EvaluationDOI: 10.3390/en16176193Volume: 16 / Issue: 17 / First page: 6193 / Year: 2023Contributors: Mantas Svazas, Yuriy Bilan, Valentinas Navickas, Małgorzata Okręglicka
- 1146 Views
-
614 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The main purpose of this paper is to examine the impact of business enablers and financial technology (Fintech) on the banking industry in order to determine whether it is an opportunity or a disruption. The applied research design is quantitative, and the hypotheses and the model were tested. To achieve the objectives, the study used a questionnaire to collect data. 150 managers in Saudi Arabia banks were surveyed. The participants provided 130 substantial and valid responses, and the PLS-SEM technique was used. Based on the analysis, it was concluded that the presence of business enablers facilitated Fintech progress, which led to the increase in bank performance, from the economic, social and environmental point of view. In addition, Fintech also plays a mediating role, by increasing the positive impact of business enablers. Therefore, Fintech provides several opportunities, not a disruptive technology, for the banking industry. The research paper explains the importance of Fintech progress in Saudi Arabian banking. Many have viewed Fintech as a disruptive technology, but this study found that it presents various opportunities for the Saudi Arabian banking industry.
- Keywords
-
JEL Classification (Paper profile tab)G14, G15, G19, E42
-
References67
-
Tables2
-
Figures1
-
- Figure 1. Conceptual framework
-
- Table 1. Reliability and validity
- Table 2. Path coefficient
-
- Ahmad, S., Wasim, S., Irfan, S., Gogoi, S., Srivastava, A., & Farheen, Z. (2019). Qualitative vs. Quantitative Research. JEBMH, 6(43), 2828-2832.
- Ahmed, I., Forde, B., Laplanche, R., Mitra, A., Bay, N. P., & Scandurra, A. (2015). The fintech revolution: How innovators are using technology to take on the world of finance. London Business School Review, 3.
- Al-Bashayreh, M., Almajali, D., Altamimi, A., Masa’deh, R. E., & Al-Okaily, M. (2022). An Empirical Investigation of Reasons Influencing Student Acceptance and Rejection of Mobile Learning Apps Usage. Sustainability, 14(7), 4325.
- Almaiah, M. A., Alfaisal, R., Salloum, S. A., Al-Otaibi, S., Al Sawafi, O. S., Al-Maroof, R. S., Lutfi, A., Alrawad, M., Al Mulhem, A., & Awad, A. B. (2022). Determinants influencing the continuous intention to use digital technologies in Higher Education. Electronics, 11(18), 2827.
- Al-Okaily, A., Al-Okaily, M., Teoh, A. P., & Al-Debei, M. (2022). An Empirical Study on Data Warehouse Systems Effectiveness: The Case of Jordanian Banks in the Business Intelligence Era. EuroMed Journal of Business, ahead-of-print.
- Al-Omoush, K. S., Al Attar, M. K., Saleh, I. H., & Alsmadi, A. A. (2020). The drivers of E-banking entrepreneurship: an empirical study. International Journal of Bank Marketing, 38(2), 485-500.
- Alrawashdeh, N., Alsmadi, A. A., & Anwar, A. L. (2022). FinTech: A Bibliometric Analysis for the Period of 2014–2021. Quality – Access to Success, 23(188), 176-188.
- Alsaad, A., & Al-Okaily, M. (2022). Acceptance of protection technology in a time of fear: the case of Covid-19 exposure detection apps. Information Technology & People, 15(3), 1116-1135.
- Alshira’h, A., Alsqour, M., Lutfi, A., Alsyouf, A., & Alshirah, M. (2020). A Socio-Economic Model of Sales Tax Compliance. Economies, 8(4), 88.
- Alsmadi, A. A., Sha’ban, M., & Al-Ibbini, O. A. (2019). The relationship between E-banking services and bank profit in Jordan for the period of 2010–2015. ICEBA 2019: Proceedings of the 2019 5th International Conference on E-Business and Applications (pp. 70-74).
- Alsmadi, A. A., Shuhaiber, A., Alhawamdeh, L. N., Alghazzawi, R., & Al-Okaily, M. (2022a). Twenty Years of Mobile Banking Services Development and Sustainability: A Bibliometric Analysis Overview (2000–2020). Sustainability, 14(17), 10630.
- Alsmadi, A., Alrawashdeh, N., Al-Dweik, A., & Al-Assaf, M. (2022b). Cryptocurrencies: A bibliometric analysis. International Journal of Data and Network Science, 6(3), 619-628.
- Antwi, S. K., & Hamza, K. (2015). Qualitative and quantitative research paradigms in business research: A philosophical reflection. European Journal of Business and Management, 7(3), 217-225.
- Apuke, O. D. (2017). Quantitative research methods: A synopsis approach. Arabian Journal of Business and Management Review (Kuwait Chapter), 6(10), 40-47.
- Arner, D. W., Barberis, J., & Buckley, R. P. (2017). FinTech and RegTech in a Nutshell, and the Future in a Sandbox. Research Foundation Briefs, 3(4).
- Baporikar, N. (2021). Fintech Challenges and Outlook in Saudi Arabia. In Y. A. Albastaki and Adel M. Sarea (Eds.), Innovative Strategies for Implementing FinTech in Banking (pp. 136-153). IGI Global.
- Bell, E., Bryman, A., & Harley, B. (2018). Business research methods. Oxford University Press.
- Boot, A. W. (2017). The Future of Banking: From Scale & Scope Economies to Fintech. European Economy, 3(2), 77-95.
- Bose, B., & Dutta, S. (2019). Fintech: Unleash A New Era Of Competition. Think India Journal, 22(27), 1-4.
- Buchak, G., Matvos, G., Piskorski, T., & Seru, A. (2018). Fintech, regulatory arbitrage, and the rise of shadow banks. Journal of Financial Economics, 130(3), 453-483.
- Carbó-Valverde, S., Cuadros-Solas, P. J., & Rodríguez-Fernández, F. (2021). FinTech and banking: An evolving relationship. In Disruptive Technology in Banking and Finance (pp. 161-194). Palgrave Macmillan, Cham.
- Chen, K.-C. (2020). Implications of Fintech developments for traditional banks. International Journal of Economics and Financial Issues, 10(5), 227-135.
- Chen, M. A., Wu, Q., & Yang, B. (2019). How valuable is FinTech innovation? The Review of Financial Studies, 32(5), 2062-2106.
- Chishti, S., & Barberis, J. (2016). The Fintech book: The financial technology handbook for investors, entrepreneurs and visionaries. John Wiley & Sons.
- Claessens, S., Frost, J., Turner, G., & Zhu, F. (2018). Fintech credit markets around the world: size, drivers and policy issues. BIS Quarterly Review, 29-49.
- Cumming, D. J., & Schwienbacher, A. (2018). Fintech venture capital. Corporate Governance: An International Review, 26(5), 374-389.
- Dandapani, K., Joo, M. H., & Nishikawa, Y. (2021). Is Fintech a Threat or a Promise to Banks? In T. Liaw (Ed.), The Routledge Handbook of FinTech.
- Das, S. R. (2019). The future of fintech. Financial Management, 48(4), 981-1007.
- El-Chaarani, H., & El-Abiad, Z. (2018). The impact of technological innovation on bank performance. Journal of Internet Banking and Commerce, 23(3), 1-33.
- Fadhul, S., & Hamdan, A. (2020). The Role of “FinTech” on Banking Performance. In European Conference on Innovation and Entrepreneurship (pp. 911-XVII). Academic Conferences International Limited.
- Flick, U. (2015). Introducing research methodology: A beginner’s guide to doing a research project. Sage.
- Goldstein, A., & Fligstein, N. (2017). Financial markets as production markets: The industrial roots of the mortgage meltdown. Socio-Economic Review, 15(3), 483-510.
- Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). Financial information systems and the fintech revolution. Journal of Management Information Systems, 35(1), 12-18.
- Guild, J. (2017). Fintech and the Future of Finance. Asian Journal of Public Affairs, 10(1), 17-20.
- Holotiuk, F., & Moormann, J. (2018). Organizational adoption of digital innovation: The case of blockchain technology.
- Jakšič, M., & Marinč, M. (2019). Relationship banking and information technology: The role of artificial intelligence and FinTech. Risk Management, 21(1), 1-18.
- Jünger, M., & Mietzner, M. (2020). Banking goes digital: The adoption of FinTech services by German households. Finance Research Letters, 34, 101260.
- Kaur, J., & Dogra, M. (2019). FinTech companies in Saudi Arabia: a study of growth analysis. Abhigyan, 37(1), 21-32.
- Lagarde, C. (2018). Central banking and fintech: A brave new world. Innovations: Technology, Governance, Globalization, 12(1-2), 4-8.
- Li, Y., Spigt, R., & Swinkels, L. (2017. The impact of FinTech start-ups on incumbent retail banks’ share prices. Financial Innovation, 3(1), 1-16.
- Lien, N. T. K., Doan, T. T. T., & Bui, T. N. (2020). Fintech and banking: Evidence from Vietnam. The Journal of Asian Finance, Economics, and Business, 7(9), 419-426.
- Lutfi, A. (2022). Understanding the Intention to Adopt Cloud-based Accounting Information System in Jordanian SMEs. The International Journal of Digital Accounting Research, 22, 47-70.
- Lutfi, A., Alkelani, S. N., Al-Khasawneh, M. A., Alshira’h, A. F., Alshirah, M. H., Almaiah, M. A., Alrawad, M., Alsyouf, A., Saad, M., & Ibrahim, N. (2022). Influence of Digital Accounting M., System Usage on SMEs Performance: The Moderating Effect of COVID-19. Sustainability, 14(22), 15048.
- Lutfi, A., Alrawad, M., Alsyouf, A., Almaiah, M. A., Al-Khasawneh, A., Al-Khasawneh, A. L., Alshirah, A. F., Alshirah, M. H., Saad, M., & Ibrahim, N. (2023). Drivers and impact of big data analytic adoption in the retail industry: A quantitative investigation applying structural equation modeling. Journal of Retailing and Consumer Services, 70, 103129.
- Makki, A. A., & Alqahtani, A. Y. (2022). Modeling the Enablers to FinTech Innovation in Saudi Arabia: A Hybrid Approach Using ISM and ANP. Systems, 10(5), 181.
- Navaretti, G. B., Calzolari, G., Mansilla-Fernandez, J. M., & Pozzolo, A. F. (2018). Fintech and banking. Friends or foes?
- Nguyen, L., Tran, S., & Ho, T. (2021). Fintech credit, bank regulations and bank performance: a cross-country analysis. Asia-Pacific Journal of Business Administration, 14(4), 445-466.
- Pandey, P., & Pandey, M. (2021). Research methodology tools and techniques. Bridge Center.
- Pozzolo, A. F. (2017). Fintech and banking. Friends or foes. European Economy – Banks, Regulation, and the Real Sector, 2.
- Puschmann, T. (2017). Fintech. Business & Information Systems Engineering, 59(1), 69-76.
- Reyes-Mercado, P. (2021). Entrepreneurship in the FinTech Industry. In FinTech Strategy (pp. 33-57). Palgrave Macmillan, Cham.
- Saunders, M., Lewis, P. H. I. L. I. P., & Thornhill, A. D. R. I. A. N. (2007). Research Methods for Business Students (4th ed.). Pearson Education Limited, England.
- Sgro, J., Smalley, P., & Welch, N. (2019). The Fintech Opportunity. In Strengthening the Rules-Based International Order (pp. 11-14).
- Siek, M., & Sutanto, A. (2019). Impact analysis of fintech on the banking industry. In 2019 International Conference on Information Management and Technology (ICIMTech) (pp. 356-361).
- Sierra-Garcia, L., Garcia-Benau, M.A., & Bollas-Araya, H. M., (2018). Empirical analysis of non-financial reporting by Spanish companies. Administrative Sciences, 8(3), 29.
- Suseendran, G., Chandrasekaran, E., Akila, D., & Kumar, A.S. (2020). Banking and FinTech (Financial Technology) Embraced with IoT Device. In Data Management, Analytics and Innovation (pp. 197-211). Springer, Singapore.
- Temelkov, Z. (2018). Fintech firms opportunity or threat for banks? International Journal of Information, Business and Management, 10(1), 137-143.
- Thakor, A. V. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41, 100833.
- Thomas, M., & Morse, J. (2017). Fintech: Origins and prognosis.
- Tidebrant, P. (2013). Disruptive innovation in the Swedish payment market: A supply-side perspective (Master’s Thesis).
- Tufano, P. (2003). Financial innovation. Handbook of the Economics of Finance, 1, 307-335.
- Vijai, C. (2019). Fintech in Saudi Arabia – Opportunities and Challenges. SAARJ Journal on Banking & Insurance Research (SJBIR), 8.
- Vives, X. (2017). The impact of FinTech on banking. European Economy, (2), 97-105.
- Wonglimpiyarat, J. (2017). FinTech banking industry: a systemic approach. Foresight, 19(6), 590-603.
- Yaseen, S. G., & Qirem, I. A. (2018). Intention to use e-banking services in the Jordanian commercial banks. International Journal of Bank Marketing, 36(3), 557-571.
- Zavolokina, L., Dolata, M., & Schwabe, G. (2016). The FinTech phenomenon: antecedents of financial innovation perceived by the popular press. Financial Innovation, 2(1), 1-16.
- Zhao, J., Li, X., Yu, C. H., Chen, S., & Lee, C. C. (2022). Riding the FinTech innovation wave: FinTech, patents and bank performance. Journal of International Money and Finance, 122, 102552.
-
-
Data curation
Ayman Abdalmajeed Alsmadi
-
Formal Analysis
Ayman Abdalmajeed Alsmadi
-
Investigation
Ayman Abdalmajeed Alsmadi, Amer Moh’d Al_hazimeh
-
Software
Ayman Abdalmajeed Alsmadi, Najed Alrawashdeh, Heba Al-Malahmeh
-
Writing – original draft
Ayman Abdalmajeed Alsmadi, Najed Alrawashdeh, Anwar Al-Gasaymeh
-
Methodology
Najed Alrawashdeh, Anwar Al-Gasaymeh, Amer Moh’d Al_hazimeh
-
Project administration
Najed Alrawashdeh
-
Resources
Najed Alrawashdeh, Anwar Al-Gasaymeh, Heba Al-Malahmeh
-
Supervision
Anwar Al-Gasaymeh
-
Validation
Heba Al-Malahmeh
-
Visualization
Heba Al-Malahmeh
-
Writing – review & editing
Heba Al-Malahmeh, Amer Moh’d Al_hazimeh
-
Conceptualization
Amer Moh’d Al_hazimeh
-
Funding acquisition
Amer Moh’d Al_hazimeh
-
Data curation
-
Service quality, customers’ satisfaction, and profitability: an empirical study of Saudi Arabian insurance sector
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 232-247 Views: 3383 Downloads: 568 TO CITE АНОТАЦІЯFinancial performance is the fundamental aspect to test the performance of the companies. The performance of insurance sector, like any other service industry, is supposed to depend significantly on customers. When it comes to customers, it is an established fact that customer satisfaction would be an important element. Customer satisfaction primarily depends on the quality of service it gets. It can be safely hypothesized that better service quality would lead to higher satisfaction, which would ultimately lead to higher profits for the company. Studies on this relationship in the insurance sector for Saudi Arabia are missing. Hence, this study aims at studying both the profitability of companies and quality of service and tries to relate it to customer satisfaction. The results are quite surprising, as the study establishes that although the qualities of services are found wanting in many areas, companies are earning good profits. A probable reason could be the statutory nature of the services. Nevertheless, this study recommends improving the quality of services and differentiating services between age groups for further improvement.
-
The impact of organizational culture on job performance: a study of Saudi Arabian public sector work culture
Problems and Perspectives in Management Volume 16, 2018 Issue #3 pp. 207-218 Views: 2944 Downloads: 1180 TO CITE АНОТАЦІЯThis research aims to assess direct and indirect influences of organizational culture on job performance, as well as to evaluate the impact of each sub-element of organizational culture on such performance. It is argued that employees performance derives, on the one hand, from a long-term perspective related to changes that organizations manage and implement during their process of growth. A second dimension of organizational culture can be given through organizational values, routines and distinctive aspects of culture that allow organizations to create solid competitive advantages. Since most studies in this field were held in Western work cultures, this paper will be devoted to the analysis of this relationship within an Arabic cultural environment and more specifically within a Saudi context. A quantitative study tool, based on a comprehensive research questionnaire, was used and the sample was selected from various government departments being operative in Alkharj. The findings indicate a positive relationship between organizational culture and job performance. Likewise, four organizational culture sub-elements, namely Managing Change, Achieving Goals, Coordinating Teamwork and Cultural Strength, were found affecting positively on job performance, but with varying and distinct intensity. Only Customer Orientation was found negatively associated with job performance.
-
Working capital management and bank performance: empirical research of ten deposit money banks in Nigeria
Osuma Godswill , Ikpefan Ailemen , Romanus Osabohien , Ndigwe Chisom , Nkwodimmah Pascal doi: http://dx.doi.org/10.21511/bbs.13(2).2018.05Banks and Bank Systems Volume 13, 2018 Issue #2 pp. 49-61 Views: 2581 Downloads: 2896 TO CITE АНОТАЦІЯWorking capital management is germane for the success of the banking industry in Nigeria, especially the current state of the sector, which is engulfed with the effect of the global decline in oil price that has resulted in non-performing loans, deterioration of the bank asset quality, laying-off of staff amongst others. This is one of the reasons why the profitability of the banking sector deeply depends on the efficient management of a bank’s working capital. Therefore, the objective of this study is to examine how profitability of banks can be enhanced through the working capital management. To empirically carry out the analysis, panel data which consist of ten (10) deposit money banks in Nigeria for seven years (2010–2016) employing the panel fixed effect, panel random effect and the pooled OLS for the two models, which were used as proxies for bank profitability, which includes return on asset (ROA) and return on equity (ROE) to examine the best measure for bank profitability, with the indicators of working capital; net interest income, current ratio, profit after tax, and monetary policy rate. Results of the study showed that working capital management has a significant effect on the profitability of the selected banks and that return on asset is a better measure for bank profitability. Therefore, the study recommends that there should be a periodic review of the minimum capital base of the Nigerian deposit money banks so as to mitigate the effects of inflation and inculcate the consequence of time value of money, because the purchasing power of one (₦1) naira or one ($1) dollar today would not be sufficient to purchase what it can purchase today for tomorrow.