IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2022i6p209-229.html
   My bibliography  Save this article

Analysing the Relationship between Financial Technology and Commercial Banks’ Financial Performance in South Africa

Author

Listed:
  • Kamo Tshukudu

    (North West University)

  • Danny Mokatsanyane

    (North West University)

  • Sune Ferreira-Schenk

    (North West University)

  • Johnny Jansen van Rensburg

    (North West University)

  • Ruschelle Sgammin

    (North West University)

Abstract

During the last decade (2010-2020), the use of financial technology within the banking sector has increased over the world. Therefore, the article aims to determine the relationship between financial technology and commercial banks’ financial performance. A simple linear regression was used along with descriptive analysis and correlation analysis based on the top five banks in South Africa. Two measures of financial performance, return on equity and return on assets, were utilised using secondary bank data for the period of 2011-2021. The findings indicated that within the chosen sample period, there is a relationship between the financial performance of the top five banks in South Africa and the incorporation of financial technology led by the number of mobile subscriptions used for internet banking. Findings also showed that competition within the banking sector is emerging, meaning that South Africa’s banking sector is moving from an oligopolistic environment into a more competitive one. This may be viable for experts within the banking space as it can provide substantial evidence that the transition from traditional-based banking to a more digital approach will be to their benefit in terms of financial performance and gaining market share within the sector.

Suggested Citation

  • Kamo Tshukudu & Danny Mokatsanyane & Sune Ferreira-Schenk & Johnny Jansen van Rensburg & Ruschelle Sgammin, 2022. "Analysing the Relationship between Financial Technology and Commercial Banks’ Financial Performance in South Africa," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 18(6), pages 209-229, December.
    • Handle: RePEc:dug:actaec:y:2022:i:6:p:209-229
    as

    Download full text from publisher

    File URL: https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1999/2382
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2022:i:6:p:209-229. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.