Abstract
The study aims to investigate the impact of the use of financial technology (FINTECH) on the profitability of banks; indicate the impact of using FINTECH to increase the quality of bank's services to provided customers; and clarify the impact of use on raising the operational efficiency of banks. The results of the study found that the use of financial technology in banks facilitates the procedures for securing the necessary financing for customers, and activating electronic services such as credit card payments, mobile phone technology, and other electronic services. FINTECH increases competition in banks by reducing barriers to entry for new products to the market. Banks use FINTECH to achieve efficient results in terms of reducing costs, increasing revenue growth, reducing risks, raising operational efficiency, and increasing profitability.
TopProblem Of The Study
Over the past few years, the FINTECH sector has revolutionized the global financial systems, as companies in the field FINTECH. It has succeeded in providing a variety of banking financial services to banks, including payments services, digital currencies, money transfer, as well as lending, financing and wealth management, which casts a shadow on the future of traditional financial services. Therefore, banks are seeking to introduce some changes in their business models by expanding the adoption in their infrastructure, to improve their competitiveness and increase reliance on modern FINTECH in providing financial services with high efficiency.
The main motive for writing this modest study was to accurately understand the importance of the emergence of FINTECH in the field of banking services, as banks face intense competition in light of rapid technological progress striving to seize opportunities in the financial services market, and based on the above, the study questions can be formulated as follows:
The following sub-questions are derived from the main question:
● Is there any effect of using FINTECH on increasing the quality of the bank's services provided to customers?
● Is there an impact of the use of financial technology FINTECH on raising the operational efficiency of banks?
Key Terms in this Chapter
Digital Banking: This is banking done through the digital platform, doing away with all the paperwork like pay-in slips, Demand Drafts, and so on. It means availability of all banking activities online.
Bank Operating Efficiency: This is a key performance metric used to assess a bank's profitability. It is calculated by dividing a bank's operating expenses by its total income and is therefore referred to as a bank's “Cost to Income Ratio.
Fintech: This is utilized to help companies, business owners, and consumers had better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is a combination of “financial technology.
Bank Performance: This means the value calculated using the financial metrics, determined by the Board, in most cases annually on the last day of each fiscal year or such more frequent intervals as may be determined in the discretion of the Board Such as factors has been assigned a weighting indicating the proportion of that metric to be used in the overall calculation of Bank Performance.
Traditional Financial Services: These are typically offered by regulated financial institutions, such as banks and credit unions, and include checking and savings accounts and home mortgage and auto loans. “Fringe” financial service providers offer check cashing and payday and title loans.
Quality of Customer Service: it This means Quality customer service involves providing efficient, quick, and friendly service to customers as well as building strong relationships with them. It also entails responding to customers' issues in time and handling any complaints swiftly.
Technological Innovation: This is a new or improved product or process whose technological characteristics are significantly different from before. Implemented technological product innovations are new products (product innovations) or processes in application (process innovations) that have been brought to market. The product or process is considered an innovation if it achieves specified advantages for the enterprise concerned; these need not be new from the point of view of other companies or the market.
Digital Currency: This is a form of currency that is available only in digital or electronic form. It is also called digital money, electronic money, electronic currency, or cyber-cash.