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FinTech and commercial banks' performance in China: A leap forward or survival of the fittest?

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  • Chen, Xihui
  • You, Xuyuan
  • Chang, Victor

Abstract

As the impacts of the COVID-19 pandemic play out globally, the banking industry has been affected in both positive and negative ways, with the crisis creating both opportunities and threats for the collaborations between FinTech and banks. The aim of this study is to investigate the impact of FinTech products (FTPs) on commercial bank's performance in China. Required data are collected with a quantitative approach and two self-designed questionnaires were distributed to customers and employees of commercial banks in China. The gathered data were examined using the structural equation modeling technique. The results of this study reveal that the perceived usefulness (PU) of FTPs has positive and significant impacts on customer satisfaction, low expectation of bank employee assistance, bank's service quality and employee work efficiency. Additionally, the perceived difficulty of use (PD) of FTPs has negative and significant impacts on customer satisfaction and low expectation of assistance. Interestingly, there is a positive and significant relationship between PD and banks' service quality and work efficiency, meaning that the service quality and work efficiency can reduce some shortcomings of using FTPs. This study recognizes the need to enhance the understanding of FTPs on non-financial firm performance. This is the first study that helps commercial banks in China understand the perception of FTPs from both customer and employee perspectives.

Suggested Citation

  • Chen, Xihui & You, Xuyuan & Chang, Victor, 2021. "FinTech and commercial banks' performance in China: A leap forward or survival of the fittest?," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    • Handle: RePEc:eee:tefoso:v:166:y:2021:i:c:s0040162521000779
    DOI: 10.1016/j.techfore.2021.120645
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    Cited by:

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    5. Wang, Shaohui & Yong, Yanlan & Liu, Xizhang & Wang, Yunliang, 2024. "How Fintech mitigates credit mismatches to promote green innovation: Evidence from Chinese listed enterprises," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    6. Zhu, Keda & Guo, Lihong, 2024. "Financial technology, inclusive finance and bank performance," Finance Research Letters, Elsevier, vol. 60(C).
    7. Chang-Sheng Liao, 2023. "How does fintech affect bank efficiency in Taiwan?," PLOS ONE, Public Library of Science, vol. 18(8), pages 1-20, August.
    8. Li, Yawen & Xia, Yufei & Sun, Zongting & Sun, Naili, 2025. "Does digital transformation affect systemic risk? Evidence from the banking sector in China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    9. Darehshiri, Mahsa & Ghaemi Asl, Mahdi & Babatunde Adekoya, Oluwasegun & Shahzad, Umer, 2022. "Cross-spectral coherence and dynamic connectedness among contactless digital payments and digital communities, enterprise collaboration, and virtual reality firms," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    10. Bo Li & Zeshui Xu, 2021. "Insights into financial technology (FinTech): a bibliometric and visual study," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-28, December.
    11. Tan, Zhuohong & Wang, Handi & Hong, Yunzhe, 2023. "Does bank FinTech improve corporate innovation?," Finance Research Letters, Elsevier, vol. 55(PA).
    12. Paiola, Marco & Schiavone, Francesco & Khvatova, Tatiana & Grandinetti, Roberto, 2021. "Prior knowledge, industry 4.0 and digital servitization. An inductive framework," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    13. Badghish, Saeed & Shaik, Aqueeb Sohail & Sahore, Nidhi & Srivastava, Shalini & Masood, Ayesha, 2024. "Can transactional use of AI-controlled voice assistants for service delivery pickup pace in the near future? A social learning theory (SLT) perspective," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    14. Fuzhong Chen & Guohai Jiang, 2022. "The Roles of FinTech with Perceived Mediators in Consumer Financial Satisfaction with Cashless Payments," Mathematics, MDPI, vol. 10(19), pages 1-21, September.
    15. Gaies, Brahim & Nakhli, Mohamed Sahbi & Sahut, Jean Michel & Guesmi, Khaled, 2021. "Is Bitcoin rooted in confidence? – Unraveling the determinants of globalized digital currencies," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    16. Ngo, Xuan Thanh & Le, Kim-Anh & Nguyen, Thanh Trung & Nguyen, Khoa Dang, 2025. "Does FinTech curb bank risk-taking? Insights from an emerging economy," Finance Research Letters, Elsevier, vol. 86(PF).
    17. Cheng, Xuanmei & Du, Anna Min & Yan, Chengnuo & Goodell, John W., 2025. "Internal business process governance and external regulation: How does AI technology empower financial performance?," International Review of Financial Analysis, Elsevier, vol. 99(C).
    18. Oyebola Etudaiye-Muhtar, Fatima & Johan, Sofia & Lawal, Rodiat & Sakariyahu, Rilwan, 2024. "Fintech, human development and energy poverty in sub-Saharan Africa," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    19. Guosong Wang & Huizhen Zhang, 2025. "FinTech-Driven Corporate Sustainability: A Technology–Organization–Environment Framework Analysis," Sustainability, MDPI, vol. 17(19), pages 1-28, September.
    20. Serge Stéphane Ky & Clovis Rugemintwari & Alain Sauviat, 2025. "Is Fintech Good for Bank Performance? The Case of Mobile Money in the East African Community," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 3918-3949, October.
    21. Zhou, Fei & Lin, Youhai & Mou, Jian & Cohen, Jason & Chen, Sihua, 2023. "Understanding the dark side of gamified interactions on short-form video platforms: Through a lens of expectations violations theory," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).

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