Fintech and financial performance in the banking industry: A literature review

Abstract

This research conducts an in-depth literature review on the influence of fintech on the financial performance. The focus is to identify key findings from prior studies, understand concepts related to fintech adoption, and explore its impact on the firm. Analyzing literature from Sinta and Scopus databases, the study aims to provide a holistic overview of fintech's role in transforming the banking landscape. Fintech adoption is found to significantly enhance operational efficiency, affecting liquidity, profitability, and overall growth. Positive cash flow operations are crucial in determining financial performance, reflecting liquidity and operational sustainability. The study suggests that further research should delve into specific independent variables such as COVID-19 cases, lockdown policies, application characteristics, and others, as well as variables like the age of mobile banking applications, GDP per capita, and mobile penetration rates. This approach ensures a comprehensive analysis of existing knowledge, contributing valuable insights for future strategic planning in the financial technology and banking sectors.