Is financial technology a complement or substitute for domestic financial institutions in Ghana?

IF 1.3 Q3 ECONOMICS

Journal of Financial Economic Policy Pub Date : 2023-07-12 DOI:10.1108/jfep-02-2023-0038

Kwadwo Antwi-Wiafe, G. Asante, Paul Owusu Takyi

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Abstract

Purpose This paper aims to examine whether financial technology is complementing the performance of domestic financial institutions or substituting their performance in Ghana. Design/methodology/approach The paper used data from the Bank of Ghana Payment System Statistics and Time Series Data of the Bank of Ghana from 2012 to 2021, by using autoregressive distributive lags estimation technique. Findings The results showed that in both the long run and short run, financial technology has a significant negative impact on bank performance, indicating that fintech serves as substitutes rather than complements for Ghanaian banks. These results suggest that there must be a critical review on the interoperability policy in Ghana and that banks should take advantage of the financial technology to increase profit. Originality/value Based on the authors’ study, no empirical work has been extensively done in the Ghanaian context by examining how financial technology serves as either a complement or substitute for domestic banking institutions. This paper focuses on exploring the key definition of financial technology in Ghana and how transactions through these media are affecting or improving the performance of banks.

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金融科技是对加纳国内金融机构的补充还是替代?

本文旨在考察金融技术在加纳是对国内金融机构绩效的补充，还是对其绩效的替代。本文采用自回归分布滞后估计技术，使用加纳银行支付系统统计数据和加纳银行2012年至2021年的时间序列数据。研究结果表明，在长期和短期内，金融科技对银行绩效都有显著的负面影响，这表明金融科技对加纳银行来说是替代品而不是补充。这些结果表明，必须对加纳的互操作性政策进行严格审查，银行应该利用金融技术来增加利润。原创性/价值根据作者的研究，在加纳的背景下，没有广泛的实证工作来研究金融技术如何作为国内银行机构的补充或替代。本文重点探讨了加纳金融技术的关键定义，以及通过这些媒体进行的交易如何影响或改善银行的绩效。

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来源期刊

Journal of Financial Economic Policy ECONOMICS-

CiteScore

2.80

自引率

8.30%

发文量

期刊介绍： The Journal of Financial Economic Policy publishes high quality peer reviewed research on financial economic policy issues. The journal is devoted to the advancement of the understanding of the entire spectrum of financial policy and control issues and their interactions to economic phenomena. Economic and financial phenomena involve complex trade-offs and linkages between various types of risk factors and variables of interest to policy makers and market participants alike. Market participants such as economic policy makers, regulators, banking and competition supervisors, corporations and financial institutions, require timely and robust answers to the contemporary and emerging policy questions. In turn, such answers require thorough input by the academics, policy makers and practitioners alike. The Journal of Financial Economic Policy provides the forum to satisfy this need. The journal publishes and invites concise papers to enable a prompt response to current and emerging policy affairs.