Impact of Fintech on Performance of Banks: Empirical Evidence From Jordan

Abstract: Today, technology is expanding over most aspects including financial issues. Financial technology is considered as a creative innovation that attracts more customers and enhances the performance of many banks. To accomplish this, this study made an attempt to assess the impact of implementing Fintech on performance of commercial banks in Jordan for the period 2012-2020 using the panel data. The research employed return on equity (ROE) as a proxy to measure the performance level in addition to three types of control variables applied in this study Gross Domestic Product (GDP) growth, Bank size (BS) and financial leverage (LEV). The Fintech factors include automated teller machines services, internet banking services and phone banking services. The empirical findings revealed that the impact of Fintech on Jordanian banks’ performance was positive. The study recommends that Jordanian commercial banks to pay attention to new financial innovations and to increase their dependence on financial technology. Keywords: Fintech, Automated Teller Machine, Internet Banking, Phone Banking, ROE JEL Classification Number: G28, G2