IDEAS home Printed from https://ideas.repec.org/a/bdd/journl/v19y2025i2p198-221.html

Examining The Effect of Financial Technology Applications on Banking Credit Risk Using Panel Data Analysis Method

Author

Listed:
  • Meltem AKARSU AYDIN
  • Halil TUNALI

Abstract

Regulatory measures implemented to reduce physical contact during the COVID-19 pandemic accelerated individuals’ access to financial products and services via digital channels, fostering significant developments in the field of financial technologies (fintech). These developments have brought about a comprehensive digital transformation in the financial sector. Although studies in the literature generally assess advancements in fintech positively, some banking risks have increased due to regulatory gaps. In this study, the impact of fintech applications on the credit risk in the banking sector in G20 countries between 2014 and 2023 was examined using panel data analysis method and it was concluded that fintech applications generally increase the credit risk. Although fintech solutions positively impact access and inclusion of financial services, it has been observed that fintech applications increase banks’ credit risk due to reasons such as individuals borrowing more than their income in countries with low income and financial literacy, insufficient adoption of digitalization, inadequate financial infrastructure, banks’ inability to accurately calculate customer risk levels, and regulatory gaps in the fintech field.

Suggested Citation

  • Meltem AKARSU AYDIN & Halil TUNALI, 2025. "Examining The Effect of Financial Technology Applications on Banking Credit Risk Using Panel Data Analysis Method," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 19(2), pages 198-221.
    • Handle: RePEc:bdd:journl:v:19:y:2025:i:2:p:198-221
    as

    Download full text from publisher

    File URL: https://www.bddk.org.tr/Content/docs/bddkDergiEn/dergi_0038_07.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    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:bdd:journl:v:19:y:2025:i:2:p:198-221. 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: Sumeyye Azize CENGIZ (email available below). General contact details of provider: https://edirc.repec.org/data/bddgvtr.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.