The Impact of Fintech Applications on Banks’ Financial Performance: An Empirical Panel Data Study of a Sample of Countries During the Period 2012–2021

Abstract

The study examines how financial technology applications—such as blockchain, artificial intelligence, and the Internet of Things—affect banks’ financial performance across various countries from 2012 to 2021. Using panel data and key indicators like ROE and SWIFT message volume, the analysis reveals a negative link between ROE and factors such as total SWIFT transactions, sales volume, and ATM numbers, suggesting reduced return efficiency. In contrast, credit card usage and cash withdrawals show a positive association with ROE. Results indicate that blockchain adoption enhanced operational efficiency and reduced costs, while AI applications in customer service and risk management boosted ROE by an average of 3.1% annually.