How does fintech affect bank efficiency in Taiwan?

PLoS One. 2023 Aug 7;18(8):e0289629. doi: 10.1371/journal.pone.0289629. eCollection 2023.

Abstract

This study investigates the impact of financial technology (fintech) on bank efficiency in Taiwan from 2007 to 2020, using parametric and non-parametric analyses. In the future, fintech is expected to play an important role in bank sustainability operations. The findings show that fintech-related initiatives affect bank efficiency. These results illustrate how fintech can help banks directly or indirectly improve their efficiency, leading to higher profits or lower costs. For instance, mobile payment systems, a fintech-related initiative, improve bank efficiency. However, this degree of improvement is not substantial. In general, the findings imply that fintech-related initiatives do not significantly improve bank efficiency, implying an IT "productivity paradox."

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Drive*
  • Efficiency*
  • Taiwan

Grants and funding

This study funders support by below Fujian Association for Science and Technology, (No.2020R0166) awarded to CSL and Hubei Polytechnic University, No.23xjr12R awarded to CSL.