The Influence of Financial Technology (Fintech) on Banking Efficiency in Developing Economies in Ethiopia

Purpose: The aim of the study was to investigate the influence of financial technology (Fintech) on banking efficiency in developing economies in Ethiopia. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings:  Financial technology (Fintech) has significantly enhanced banking efficiency in Ethiopia by improving accessibility through mobile banking and digital payments, especially in rural areas. This shift has reduced operational costs, streamlined transactions, and provided faster, more convenient services. Fintech innovations have also enriched customer experience with personalized banking options and real-time transaction monitoring, boosting overall satisfaction and loyalty. However, challenges like cybersecurity and regulatory frameworks require ongoing attention to sustain and expand Fintech's impact on banking efficiency and financial inclusion nationwide. Unique Contribution to Theory, Practice and Policy: Diffusion of innovation theory, resource-based view (RBV) theory & technology acceptance model (TAM) may be used to anchor future studies on the influence of financial technology (Fintech) on banking efficiency in developing economies in Ethiopia. Encourage collaborations between financial institutions, FinTech startups, and regulatory bodies to pilot and scale innovative solutions tailored to local needs. Establish flexible regulatory frameworks that foster innovation while safeguarding consumer rights and financial stability.