IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v18y2025i8p458-d1726463.html
   My bibliography  Save this article

Banking in the Age of Blockchain and FinTech: A Hybrid Efficiency Framework for Emerging Economies

Author

Listed:
  • Vladimir Ristanović

    (Institute of European Studies, 11 Square Nikola Pašić, 11000 Belgrade, Serbia)

  • Dinko Primorac

    (Department of Economy, University North, Jurija Križanića 31b, 42000 Varaždin, Croatia)

  • Ana Mulović Trgovac

    (Department of Economy, University North, Jurija Križanića 31b, 42000 Varaždin, Croatia)

Abstract

In the present era where digitalization, FinTech, and blockchain technologies are reshaping the global financial landscape, traditional measures of bank performance need to evolve. This paper introduces a hybrid approach that combines multi-criteria efficiency assessment and econometric modeling to evaluate bank performance within the context of digital transformation in emerging economies. Focusing on a panel of banks across selected emerging markets, this study first applies a multi-criteria decision-making technique (Data Envelopment Analysis) to assess operational efficiency using both conventional indicators and digitalization-driven metrics, such as mobile banking penetration and blockchain adoption. We then employ a panel econometric model to investigate the factors that shape efficiency outcomes, with special attention to FinTech and blockchain innovations as potential drivers. The results reveal a nuanced picture of how digital technologies can influence bank performance, highlighting both opportunities and constraints for financial institutions in less developed markets. The findings offer actionable insights for bank managers, regulators, and policymakers striving to balance traditional operational priorities with the demands of digital transformation. By linking efficiency measurement with an examination of the digitalization process, this paper provides a timely contribution to the literature on banking and financial innovation, serving as a foundation for future research and strategic decision-making in the FinTech and blockchain era.

Suggested Citation

  • Vladimir Ristanović & Dinko Primorac & Ana Mulović Trgovac, 2025. "Banking in the Age of Blockchain and FinTech: A Hybrid Efficiency Framework for Emerging Economies," JRFM, MDPI, vol. 18(8), pages 1-17, August.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:8:p:458-:d:1726463
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/18/8/458/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/18/8/458/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scott, Susan V. & Van Reenen, John & Zachariadis, Markos, 2017. "The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services," Research Policy, Elsevier, vol. 46(5), pages 984-1004.
    2. Premachandra, I.M. & Bhabra, Gurmeet Singh & Sueyoshi, Toshiyuki, 2009. "DEA as a tool for bankruptcy assessment: A comparative study with logistic regression technique," European Journal of Operational Research, Elsevier, vol. 193(2), pages 412-424, March.
    3. Miroslav Mateev & Ahmad Sahyouni & Muhammad Usman Tariq, 2023. "Bank regulation, ownership and risk taking behavior in the MENA region: policy implications for banks in emerging economies," Review of Managerial Science, Springer, vol. 17(1), pages 287-338, January.
    4. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    5. Zhiyong Li & Chen Feng & Ying Tang, 2022. "Bank efficiency and failure prediction: a nonparametric and dynamic model based on data envelopment analysis," Annals of Operations Research, Springer, vol. 315(1), pages 279-315, August.
    6. Berger, Allen N. & Hanweck, Gerald A. & Humphrey, David B., 1987. "Competitive viability in banking : Scale, scope, and product mix economies," Journal of Monetary Economics, Elsevier, vol. 20(3), pages 501-520, December.
    7. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
    8. Marsela Thanasi-Boçe & Julian Hoxha, 2025. "Blockchain for Sustainable Development: A Systematic Review," Sustainability, MDPI, vol. 17(11), pages 1-38, May.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    10. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jamil, Abd Rahim Md. & Law, Siong Hook & Mohamad Khair-Afham, M.S. & Trinugroho, Irwan, 2023. "Financial inclusion and economic uncertainty in developing countries: The role of digitalisation," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 786-806.
    2. Qian Wang & Jinbao Yang & Yung‐ho Chiu & Tai‐Yu Lin, 2020. "The impact of digital finance on financial efficiency," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1225-1236, October.
    3. Razzaq, Asif & Yang, Xiaodong, 2023. "Digital finance and green growth in China: Appraising inclusive digital finance using web crawler technology and big data," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    4. Peterson K. Ozili, 2023. "Determinants of FinTech and BigTech lending: the role of financial inclusion and financial development," Journal of Economic Analysis, Anser Press, vol. 2(3), pages 66-79, May.
    5. Khan, Mansoor & Khan, Salabat & Rahman, Imran Ur, 2025. "Supply-chain digitization and non-intrusive load monitoring with digital twins: The Impact of Energy Policies on Carbon Pricing and Renewable Energy Deployment," Energy Economics, Elsevier, vol. 144(C).
    6. Francisco Jesús Gálvez-Sánchez & Juan Lara-Rubio & Antonio José Verdú-Jóver & Víctor Meseguer-Sánchez, 2021. "Research Advances on Financial Inclusion: A Bibliometric Analysis," Sustainability, MDPI, vol. 13(6), pages 1-19, March.
    7. Hongyan Zhao & Wanteng Zheng & Irina Loutfoullina, 2022. "Digital Finance and Collaborative Innovation: Case Study of the Yangtze River Delta, China," Sustainability, MDPI, vol. 14(17), pages 1-15, August.
    8. Elfeituri, Hatem, 2022. "Banking stability, institutional quality, market concentration, competition and political conflict in MENA," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 76(C).
    9. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
    10. Wei, Danqi & Ahmad, Fayyaz & Chandio, Abbas Ali & Khan, Irfan, 2024. "Digital financial inclusion role to promote renewable energy technology innovation in Chinese prefectural cities: Moderating role of environmental governance," Renewable Energy, Elsevier, vol. 237(PB).
    11. Xiaoheng Zhang & Keyu Bao & Zebin Liu & Li Yang, 2022. "Digital Finance, Industrial Structure, and Total Factor Energy Efficiency: A Study on Moderated Mediation Model with Resource Dependence," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    12. Xiaomeng Lu & Jiaojiao Guo & Hailing Zhou, 2021. "Digital financial inclusion development, investment diversification, and household extreme portfolio risk," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(5), pages 6225-6261, December.
    13. Xu, Meng & Yang, Zhonghai & Lin, Yu-En & Li, Gaobo, 2024. "Maturity mismatched investment, digital financial inclusion, and digital orientation: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    14. Tsung-Chun Chen & Fu-Hsiang Kuo & Wei-Bin Lin, 2021. "Factors Affecting the Development Policies of Digital Deposit Accounts for the Bank in Taiwan," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 11(4), pages 1-2.
    15. Rizky Yudaruddin & Bramantyo Adi Nugroho & Mardiany & Zhikry Fitrian & Pebiansyah Hapsari & Yuli Fitrianto & Eka Nor Santi, 2024. "Liquidity and Credit Risk in Indonesia: The Role of FinTech Development," SAGE Open, , vol. 14(2), pages 21582440241, May.
    16. Kristin Hommel & Peter M. Bican, 2020. "Digital Entrepreneurship in Finance: Fintechs and Funding Decision Criteria," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    17. Deng, Jiapin & Liu, Yanchu, 2022. "Does digital finance reduce the employment in the finance industry? Evidence from China," Finance Research Letters, Elsevier, vol. 48(C).
    18. Khan, Mohammed Arshad & Khan, Muhammad Atif & Khan, Muhammad Asif & Alhumoudi, Hamad & Haddad, Hossam, 2023. "Natural resource rents and access to finance," Journal of Multinational Financial Management, Elsevier, vol. 70.
    19. Xiaoran Jia & Kiridaran Kanagaretnam, 2025. "Digital Inclusion and Financial Inclusion: Evidence from Peer-to-Peer Lending," Journal of Business Ethics, Springer, vol. 196(2), pages 345-380, January.
    20. Liuhua Fang & Bin Zhao & Wenyu Li & Lixia Tao & Luyao He & Jianyu Zhang & Chuanhao Wen, 2023. "Impact of Digital Finance on Industrial Green Transformation: Evidence from the Yangtze River Economic Belt," Sustainability, MDPI, vol. 15(17), pages 1-23, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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:gam:jjrfmx:v:18:y:2025:i:8:p:458-:d:1726463. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.