The relationship between the risks of adopting FinTech in banks and their impact on the performance
Banks give great attention to identifying the risks of adopting FinTech and the extent of its negative impact on their business. This study aims to explore the relationship between the risks of adopting FinTech in banks and their impact on performance, where the balanced scorecard was used to measur...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2023-12-01
|
| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2174242 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850210920031059968 |
|---|---|
| author | Hussein Ahmed Al-Shari M. A. Lokhande |
| author_facet | Hussein Ahmed Al-Shari M. A. Lokhande |
| author_sort | Hussein Ahmed Al-Shari |
| collection | DOAJ |
| description | Banks give great attention to identifying the risks of adopting FinTech and the extent of its negative impact on their business. This study aims to explore the relationship between the risks of adopting FinTech in banks and their impact on performance, where the balanced scorecard was used to measure performance. This study identifies four risks, which are the most important risks affecting FinTech in banks: systemic risks, operational risks, outsourcing risks, and cyber risks. The data was collected through a questionnaire for 263 respondents at the managerial level of bank branches in Yemen from October to December 2021. Structural equation modeling PLS-SEM and a disjoint two-stage approach were used to approve the model’s constructs. The current study proved the validity of the proposed relationship between the risks and the effect of risk variables on each other, except for the impact of outsourcing risks on cyber risks. Also, the study result is that cyber risks and operational risks of adopting FinTech have a negative impact on banks’ performance. But the outsourcing risks of the adoption of FinTech have a positive impact on banks’ performance the systemic risks do not affect banks’ performance. Therefore, this study is considered one of the rare studies that contribute to analyzing the risks of adopting FinTech in banks and its impact on performance. In addition, it gives a clear picture for decision-makers in banks to identify the dark side of FinTech adoption. |
| format | Article |
| id | doaj-art-e628d188d54d45df9644a80652a3d202 |
| institution | OA Journals |
| issn | 2331-1975 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-e628d188d54d45df9644a80652a3d2022025-08-20T02:09:40ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2174242The relationship between the risks of adopting FinTech in banks and their impact on the performanceHussein Ahmed Al-Shari0M. A. Lokhande1Department of Business Administration, Thamar University -dhamar, Thamar, YemenDepartment of Commerce, Dr. Babasaheb Ambedkar Marathwada University - Aurangabad, Aurangabad, IndiaBanks give great attention to identifying the risks of adopting FinTech and the extent of its negative impact on their business. This study aims to explore the relationship between the risks of adopting FinTech in banks and their impact on performance, where the balanced scorecard was used to measure performance. This study identifies four risks, which are the most important risks affecting FinTech in banks: systemic risks, operational risks, outsourcing risks, and cyber risks. The data was collected through a questionnaire for 263 respondents at the managerial level of bank branches in Yemen from October to December 2021. Structural equation modeling PLS-SEM and a disjoint two-stage approach were used to approve the model’s constructs. The current study proved the validity of the proposed relationship between the risks and the effect of risk variables on each other, except for the impact of outsourcing risks on cyber risks. Also, the study result is that cyber risks and operational risks of adopting FinTech have a negative impact on banks’ performance. But the outsourcing risks of the adoption of FinTech have a positive impact on banks’ performance the systemic risks do not affect banks’ performance. Therefore, this study is considered one of the rare studies that contribute to analyzing the risks of adopting FinTech in banks and its impact on performance. In addition, it gives a clear picture for decision-makers in banks to identify the dark side of FinTech adoption.https://www.tandfonline.com/doi/10.1080/23311975.2023.2174242FinTechcyber risksoutsourcing risksoperational riskssystemic risksbalanced scorecard |
| spellingShingle | Hussein Ahmed Al-Shari M. A. Lokhande The relationship between the risks of adopting FinTech in banks and their impact on the performance Cogent Business & Management FinTech cyber risks outsourcing risks operational risks systemic risks balanced scorecard |
| title | The relationship between the risks of adopting FinTech in banks and their impact on the performance |
| title_full | The relationship between the risks of adopting FinTech in banks and their impact on the performance |
| title_fullStr | The relationship between the risks of adopting FinTech in banks and their impact on the performance |
| title_full_unstemmed | The relationship between the risks of adopting FinTech in banks and their impact on the performance |
| title_short | The relationship between the risks of adopting FinTech in banks and their impact on the performance |
| title_sort | relationship between the risks of adopting fintech in banks and their impact on the performance |
| topic | FinTech cyber risks outsourcing risks operational risks systemic risks balanced scorecard |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2174242 |
| work_keys_str_mv | AT husseinahmedalshari therelationshipbetweentherisksofadoptingfintechinbanksandtheirimpactontheperformance AT malokhande therelationshipbetweentherisksofadoptingfintechinbanksandtheirimpactontheperformance AT husseinahmedalshari relationshipbetweentherisksofadoptingfintechinbanksandtheirimpactontheperformance AT malokhande relationshipbetweentherisksofadoptingfintechinbanksandtheirimpactontheperformance |