FinTech and financial development: the role of traditional financial institutions

IF 1.4 Q3 ECONOMICS
Abraham Emuron, D.P. van der Nest, Cephas Paa Kwasi Coffie
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引用次数: 0

Abstract

Purpose

This paper employs data from the World Bank to examine the effect of traditional banks on FinTech and financial development in the Southern African Development Community (SADC) region.

Design/methodology/approach

The study employs the Generalized Method of Moments (GMM) as the primary data analysis method.

Findings

The findings of the study demonstrate a bi-directional relationship between traditional financial institutions and FinTech. Traditional financial institutions are observed to facilitate the adoption of FinTech solutions, whilst the disruptive effects of FinTech incentivize traditional banks to adapt to the changing financial landscape and tailor their service and product offerings to reflect recent technological advancements. Consequently, there exists a positive relationship between traditional financial institutions and financial development in the SADC region.

Practical implications

Our findings suggest the need for market liberalization and enhanced institutional quality controls for policymakers. Traditional banks must adapt their business models and incorporate FinTech solutions to remain competitive and relevant. Collaborative partnerships between traditional banks and FinTech firms have emerged as a practical approach to leverage the strengths of both sectors.

Originality/value

This is one of the first studies to examine the role of traditional financial institutions in FinTech and financial development using GMM in the SADC region.

金融科技与金融发展:传统金融机构的作用
本研究采用广义矩法(GMM)作为主要数据分析方法。研究结果研究结果表明,传统金融机构与金融科技之间存在双向关系。据观察,传统金融机构促进了金融科技解决方案的采用,而金融科技的破坏性影响则激励传统银行适应不断变化的金融环境,并调整其服务和产品以反映最新的技术进步。因此,在南部非洲发展共同体地区,传统金融机构与金融发展之间存在着积极的关系。 我们的研究结果表明,政策制定者需要放开市场并加强机构质量控制。传统银行必须调整其业务模式,融入金融科技解决方案,以保持竞争力和相关性。传统银行与金融科技公司之间的合作伙伴关系已成为利用两个部门优势的一种实用方法。原创性/价值这是首次在南部非洲发展共同体地区使用 GMM 研究传统金融机构在金融科技和金融发展中的作用。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.20
自引率
7.70%
发文量
41
期刊介绍: African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies.
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