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A Systematic Review of Fintech and Banking Profitability

Author

Listed:
  • Adey Tarawneh

    (Faculty of Economics & Management, Universiti Kebangsaan Malaysia (UKM), Bangi 43600, Selangor, Malaysia
    Department of Management, Ahmad Bin Mohammed Military College, Doha 22988, Qatar)

  • Aisyah Abdul-Rahman

    (Faculty of Economics & Management, Universiti Kebangsaan Malaysia (UKM), Bangi 43600, Selangor, Malaysia
    Institute of Islam Hadhari, Universiti Kebangsaan Malaysia (UKM), Bangi 43600, Selangor, Malaysia)

  • Syajarul Imna Mohd Amin

    (Faculty of Economics & Management, Universiti Kebangsaan Malaysia (UKM), Bangi 43600, Selangor, Malaysia)

  • Mohd Fahmi Ghazali

    (Faculty of Economics & Management, Universiti Kebangsaan Malaysia (UKM), Bangi 43600, Selangor, Malaysia)

Abstract

Financial technology (Fintech), characterized as technology-driven financial innovation, has catalyzed significant economic growth across various nations. The Fintech sector has experienced remarkable expansion, boasting vast user numbers. While regions like the United States and China have seen accelerated Fintech development, other areas like Western Europe, Eastern Asia, and the Middle East continue their evolutionary journey with this technology. Our research offers a systematic review of contemporary literature, probing the crucial Fintech metrics affecting bank profitability and identifying the primary factors influencing these profits. This review introduces a holistic methodology for quantitatively assessing the evolving Fintech measures and their interplay with determinants of bank profitability. According to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, our study evaluates 28 articles from Web of Science and Scopus databases from August 2019 to August 2023. Findings delineate two principal themes: Fintech measures at both bank and country levels and determinants of profitability, encompassing bank-specific and country-specific variables. We utilize the Theories, Constructs, Contexts, and Methods framework to chart the course for future research. Our insights bear significance for theoretical progression and practical implementation, offering academics, banking professionals, and policymakers a nuanced comprehension of the nexus between Fintech and bank profitability.

Suggested Citation

  • Adey Tarawneh & Aisyah Abdul-Rahman & Syajarul Imna Mohd Amin & Mohd Fahmi Ghazali, 2024. "A Systematic Review of Fintech and Banking Profitability," IJFS, MDPI, vol. 12(1), pages 1-21, January.
    • Handle: RePEc:gam:jijfss:v:12:y:2024:i:1:p:3-:d:1317122
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    References listed on IDEAS

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    1. Dur Almulla & Abdullah A. Aljughaiman & Vassilios Papavassiliou, 2021. "Does financial technology matter? Evidence from an alternative banking system," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1934978-193, January.
    2. Lars Hornuf & Milan F. Klus & Todor S. Lohwasser & Armin Schwienbacher, 2021. "How do banks interact with fintech startups?," Small Business Economics, Springer, vol. 57(3), pages 1505-1526, October.
    3. Adalessossi, Kokou, 2023. "Impact of E-Banking on the Islamic bank profitability in Sub-Saharan Africa: What are the financial determinants?," Finance Research Letters, Elsevier, vol. 57(C).
    4. Rui Wang & Jiangtao Liu & Hang(Robin) Luo, 2021. "Fintech development and bank risk taking in China," The European Journal of Finance, Taylor & Francis Journals, vol. 27(4-5), pages 397-418, March.
    5. Hana Kharrat & Yousra Trichilli & Boujelbène Abbes, 2023. "Relationship between FinTech index and bank’s performance: a comparative study between Islamic and conventional banks in the MENA region," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 15(1), pages 172-195, April.
    6. Paraskevi Katsiampa & Paul B. McGuinness & Jean-Philippe Serbera & Kun Zhao, 2022. "The financial and prudential performance of Chinese banks and Fintech lenders in the era of digitalization," Review of Quantitative Finance and Accounting, Springer, vol. 58(4), pages 1451-1503, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Njabulo Mhlongo & Damien Kunjal & Paul-Francois Muzindutsi, 2025. "The influence of Fintech innovations on bank competition and performance in South Africa," Modern Finance, Modern Finance Institute, vol. 3(2), pages 1-12.
    2. Lyudmila I. Tenkovskaya, 2024. "Modelling company’s stock quotes under the economy’s cyclicity," Journal of New Economy, Ural State University of Economics, vol. 25(3), pages 138-154, December.
    3. Asmaa Hamdy Abdelaziz Mohamed Elmahdy & Menna Talla Khaled Mohamed Abdelkader & Mina Ayman Mikhaeel Shaker, 2025. "Bridging the nexus between Fintech, operational efficiency and banks profitability: the moderating role of bank size," Future Business Journal, Springer, vol. 11(1), pages 1-14, December.
    4. Yang Liu & Aisyah Abdul Rahman & Syajarul Imna Mohd Amin & Roslan Ja’afar, 2025. "Navigating fintech and banking risks: insights from a systematic literature review," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-16, December.
    5. Michael Yao-Ping Peng & Sarah Nawazish & Boghean Florin & Andrei Octavian Paraschivescu & Violeta Hazaparu & Florin Radu & Gabriela Daniela Bordeianu & Boghean Carmen & Faur Flaviu Casian & Bilţi Ralu, 2026. "Unraveling the influence of digital financial system and shadow banking on commercial banks' profitability," Electronic Commerce Research, Springer, vol. 26(2), pages 2453-2465, April.
    6. Ali Alrsheedi & Yulita Hanum P. Iskandar, 2025. "Key factors influencing fintech adoption among Saudi banks: a conceptual framework," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    7. Khan, Habib Hussain & Kutan, Ali M. & Qureshi, Fiza, 2024. "Fintech integration: Driving efficiency in banking institutions across the developing nations," Finance Research Letters, Elsevier, vol. 67(PA).
    8. Pampurini, Francesca & Quaranta, Anna Grazia & Onorato, Grazia, 2025. "Does efficiency matter in M&A of FinTech firms?," Research in International Business and Finance, Elsevier, vol. 78(C).
    9. Mina-Madalina Toma, 2024. "The Role of Fintech in Driving Financial Inclusion: A Review of Literature," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 334-343.
    10. Changjun Zheng & Md Ataur Rahman & Shahadat Hossain & Syed Moudud-Ul-Huq, 2026. "Impact of fintech-centric financial inclusion on bank risk-taking: evidence from developing countries," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-32, December.

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